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PayrollPenalty - IRS Failure to Deposit Penalty Abatement Software

Should I pay the balance on the IRS Notice before filing the deposit reallocation with PayrollPenalty?

We have talked to numerous IRS agents and they highly recommend paying the amount due and then filing for the deposit reallocation to abate the Failure To Deposit penalty. The reason is once it is approved, you will get refunded the difference. If it goes to collection, it could get ugly and would be harder to stop.

Does the IRS have to accept the deposit reallocation?

Yes, they do. It is the law. PayrollPenalty’s payment allocation methodology complies with all legislative and regulatory rules. It reduces penalties by using a pro-taxpayer strategy for designating how deposits should be applied. The authority for designating deposits is found in the 1998 IRS Reform and Restructuring bill.

Do I have to have to make deposits?

Yes. The program reallocates the deposits that were made so you must have deposits to do so and you must have more than one deposit to reallocate.