A penalty waiver request asks the tax authority to remove an eligible penalty after reviewing the cause and supporting evidence. Approval is not guaranteed.
The usual process
Identify the assessment and affected period.
Verify the filing, payment and reason for the delay.
Bring required tax accounts and payments up to date.
Collect supporting evidence.
Submit the request to the relevant authority.
Wait for the authority’s decision.
Communicate the outcome.
What a waiver doesn’t do
It doesn’t remove interest. Interest is not waived.
It doesn’t pause interest, penalties, collection activity or a payment requirement while the request is reviewed.
It doesn’t change a filing deadline. See [Penalty waiver vs filing extension].
All accounts must be up to date
Every account you hold with the relevant authority must be up to date before a waiver can be considered. This can include non-sales-tax accounts such as corporate, withholding or franchise tax. Paying one notice doesn’t necessarily clear every account or tax type.
Previous waivers
Authorities may limit how often they grant waivers. A previous waiver can affect a later request, although an authority may consider additional evidence under its own rules.
To have Yonda submit a request, see Requesting a Penalty Waiver through Yonda.