Audit - First time abatement available for penalties?

[h0250722]

A client (C Corp) of mine is currently audited because he did not file 1042S and did not pay withholding taxes. The IRS now requires failure to file/pay/deposit. I was wondering if the first time abatement relief would apply to this case? He was never late on anything before.

Or are first time abatements generally not granted during an audit?

[BobKamman]

That's not the usual return where penalty relief is requested, nor is an audit the usual place where it is brought up.  But I don't see anything preventing it.  Are you working with a real auditor, or is this just faceless correspondence from a Service Center?

https://www.irs.gov/payments/penalty-relief-due-to-first-time-abate-or-other-administrative-waiver 

[h0250722]

Real auditor. She is new, so she said she has to check with the manager - which usually means it takes another 3 months until I hear back...

[taxes96786]

This is a question for the IRS.

[BobKamman]

@h0250722  Like all questions for IRS, you could ask three different people there and get three different answers.  

[h0250722]

Correct. And it usually takes them 3 months to come up with an answer and I just try to avoid any more penalties ... They are just so slow...