Around this time of year, many people have filed and forgotten about their 2017 tax returns. But, some taxpayers are abruptly reminded by receiving notice of an IRS penalty.

Here are the two most common types and how you might seek relief: Failure-to-file and failure-to-pay.

The IRS will consider relief when you establish that you were unable to meet your federal tax obligations, despite using all ordinary care and prudence. Taxpayers frequently cited these reasons: fire, casualty, natural disaster, or other disturbance. The IRS may also accept death, serious illness, incapacitation, or unavoidable absence of the taxpayer or an immediate family member.

If you don’t have a good reason for filing or paying late, you may be able to apply for a first-time penalty abatement (FTA) waiver. To qualify for relief, you must have: 1) received no penalties (other than estimated tax penalties) for the three tax years preceding the tax year in which you received a penalty; 2) filed all required returns or filed a valid extension of time to file; and, 3) paid, or arranged to pay, any tax due.

Despite the expression “first-time,” you can receive FTA relief more than once, so long as at least three years have elapsed.

With over 20 years of experience in public accounting, Amanda Bechen CPA owns Bechen & Company PC located in Wagner, SD, and can be contacted at 605-384-4200 or www.bechenco.com .