IRS Penalties and Abatements
Author: Allison McLeod
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
Penalty abatement is a technique that tax practitioners can utilize to help their clients reduce penalties and interest they owe to the IRS if the taxpayer can prove “reasonable cause.”
This informative and insightful course will provide you with some insider tips, practical steps and effective strategies to help your client manage IRS tax penalties and interest. Learn about various types of penalties that you may face and the various forms and procedures used for requesting penalty and interest abatement, including First Time and Reasonable Cause abatement. Plus, learn about the procedure to follow when requesting refund of paid penalties.
Publication Date: July 2025
Designed For
CPAs, Enrolled agents, Attorneys, Finance professionals, Financial planners, Tax Professionals
Topics Covered
- Penalties - Generally
- Penalties for Failure to File (FTF)
- Penalties for Failure to Pay
- Failure to Pay Estimated Taxes
- Failure to Deposit Payroll Funds Form 941
- Accuracy Related Penalties
- Relief from Penalties
- First Time Abatements (FTAs)
- Other Issues
- Trust Fund Recovery Penalty (TFRP)
- Failure to File Form 1065
- Failure to File International Information Returns
- Forms 5471, 5472, 8858, 8865, 926, and 8938
- Failure to File Forms 3520 and 3520-A
- Failure to File or Furnish a Correct Payee Statement
Learning Objectives
- Identify situations where penalties can be imposed
- Describe how to utilize techniques for preventing or reducing any penalty assessments
- Identify when the First Time Abatement can be used
- Describe the procedure governing the request for refund
- Identify the two methods taxpayers can use to stop interest from accruing on tax liabilities
- Identify the percentage penalty applicable for failing to deposit payroll funds between 1-5 days late
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
