Penalty Abatement for Truckers: A Simple Guide to Form 2290 Relief
Penalty abatement is the process through which you can appeal to the IRS for the cancellation of the imposition of penalties resulting from late or incorrect tax filings. The IRS considers late filings and payment to be very serious matters and at the same time provides relief to taxpayers who can prove good and sufficient cause for their noncompliance. This procedure should be known to all truckers and fleet owners who want to get on track prior to incurring huge penalty fines.
What Happens When Abatement Of Form 2290 Penalties Is Considered?
When the IRS decides to remit all or some of the penalties levied against you, they do so mostly on the basis of two types, namely, reasonable cause and first-time penalty abatement.
Two Types Of Relief
1. Reasonable Cause
The most commonly cited cause for the waiving of penalties is reasonable cause. The basic requirement is that you should have shown that you have exercised ordinary care and prudence in filing or paying; however, you cannot do so because of circumstances beyond your control.
Other good reasons accepted by the IRS include:
Natural disasters or other events that directly interfered with your ability to file.
Severe illness or death of the taxpayer or a first-degree relative.
Inability to obtain records necessary for filing.
It is in your best interest to substantiate your claim with credible documents, such as medical reports or formal declarations of disaster.
1. First-Time Penalty Abatement (FTA)
If you do not fulfill the requirements for a reasonable cause, in the event you are otherwise in compliance, you can still pursue your one-time relief under First-Time Penalty Abatement. The FTA program is an excellent choice for truck drivers who have had no infractions of the law but made one genuine error. You could be eligible if:
You have not received any penalties for the past three tax years preceding your penalty assessment.
You filed all your returns and paid or arranged to pay any taxes owed.
It is a one-time opportunity, so make sure it is worth using.
How Our E-File Service Eases Your Process
The process through which the IRS considers penalty abatement can be truly confusing and convoluted. As your committed Form 2290 e-file service company, we do much more than facilitate the quick filing of your taxes. We have set up a very simple procedure designed to avert penalties in the first place with built-in error-checks and alerts.
In the event that penalties are actually incurred and a notice received, our site and support team can help. We will advise you regarding the applicability of an HVUT penalty waiver and assist in the preparation of substantiating material for a strong case to the IRS. Don't let penalties beat you down. Take back your compliance and get back to business.
