Did you like how we did? Rate your experience!

Rated 4.5 out of 5 stars by our customers 561

Video instructions and help with filling out and completing Are Form 843 Download

Instructions and Help about Are Form 843 Download

Hello and welcome to today's edition of Rubin on tax where we go the first time bait program do you know what the first time a bait program is I venture to say there's a fair amount of people out there that don't but should the program relates to the penalties for failure to file or failure to pay taxes if you are late filing a tax return the IRS will impose a 5% penalty per month on the tax amount and if you are late in paying taxes there's an additional or different penalty of 1/2 of 1% per month that you are late both of these each go to their own 25 percent maximum penalties however since 2022 there has been a program this first time a bait program that will allow taxpayers who have been current on their and compliant with their taxes for the prior three-year period to avoid these penalties the first time that they incur them for filing late or paying late now these are not small potato type penalties when this was examined by the Inspector General for the Treasury Department he found that the average penalty imposed in these circumstances was about $60,000 for failure to file and 21,000 for failure to pay so this was a great program but the problem is a lot of people don't know it's out there when the Inspector General took a look around and sampled the IRS records he determined that approximately one point four five million taxpayers could have used this program but instead pay penalties and didn't know they could use it and the IRS collected about a hundred eighty one thousand one hundred eighty one million dollars in taxes that it really should not have so this is a problem that the inspector general pointed out and the IRS is pledging to look into it and do what it can to publicize and otherwise deal with it and a secondary issue a little more technical that also gets get caught up here that if a taxpayer actually knew about the program and used it if they could have also been able to abate their taxes because they had reasonable cause for not filing their returns they would have been better off to get a reasonable cause of abatement than to use the first-time abatement that's because if you get a reasonable cause of bateman and then your delinquent the next year you could then use the first time of eight men but if you use the first time abatement in the first year you cannot then use it again for three more years so that is also something that the IRS said they're going to look at well thank you for listening I'm trying to keep these videos fairly short if you want more detail please check the written version of this posting and also there's all the disclaimers and other information you'd ever need thank you very much goodbye you.

If you believe that this page should be taken down, please follow our DMCA take down process here.