Commentary

8.6 Waiver of penalties

United States
United States | Commentary

8.6 Waiver of penalties

United States | Commentary

8.6     Waiver of penalties

Payroll tax penalties will not apply if any failure to make a proper and timely deposit was due to reasonable cause and not to the employer's wilful neglect.

The IRS may also waive deposit and filing penalties for first-time errors or omissions, such as inadvertently mailing the deposit payment rather than using the electronic funds transfer system (EFTS), or missing a first payment date.

Businesses that receive a TFRP notice can seek abatement of the penalties by proving that there was reasonable cause for the unreported taxes or the late payments.

Typical reasons can include:

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