Filing Late

Filing late can be a frustrating process. You may be unsure of any penalties and interest that may be applied from filing late. These penalties and interest may be abated if you take the proper steps with the tax authorities.

IRS Rules

The IRS may provide administrative relief from a penalty that would otherwise be applicable under its First Time Penalty Abatement policy.

You may qualify for administrative relief from penalties for failing to file a tax return, pay on time, and/or to deposit taxes when due under the Service’s First Time Penalty Abatement policy if the following are true:

  • You didn’t previously have to file a return or you have no penalties for the 3 tax years prior to the tax year in which you received a penalty.
  • You filed all currently required returns or filed an extension of time to file.
  • You have paid, or arranged to pay, any tax due.

The failure-to-pay penalty will continue to accrue, until the tax is paid in full. It may be to your advantage to wait until you fully pay the tax due prior to requesting penalty relief under the Service’s first time penalty abatement policy.

The IRS asks that you send a letter to relieve the penalties.

The state of MA also offers penalty relief.  The MA tax connect filing system has a number of reasons available for penalty relief as well.  The system allows you to choose one of these reasons and then you can request the abatement.  A typical abatement for the state of MA would be the death of a taxpayer.