Recently, National Taxpayer Advocate Erin Collins told attendees of an American Institute of CPAs conference that she thought the IRS needed to address problems more quickly. As an example, she said that approximately 1 million taxpayers are eligible for first-time abatements each year, but many aren’t aware of it. The IRS acknowledged the problem a few years ago yet plans to notify eligible taxpayers won’t begin until the forthcoming 2026 tax season. In general, first-time abatement can be an option if penalties are assessed for failure to file, pay or deposit. To qualify, taxpayers must have a history of good tax compliance and meet other criteria.
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