Abatement of penalties is possible. These are two case examples of how the IRS approved an abatement of penalties.
Abatement of Penalties IRS Case #1
The client’s spouse tragically died of cancer. This took a major toll on the client emotionally and physically. The client struggled to maintain a business originally operated by the spouse. The client cashed out a 401K and did not pay the taxes. As a result, the client incurred a large tax bill.
We prepared a case to abate IRS tax penalties based on “Death, Serious Illness, or Unavoidable Absence.”
The IRS accepted an abatement for penalties. The IRS removed $12,000 of penalties. Click Here to read more on about this case and the steps we took to abate the IRS tax penalties.
Abatement of Penalties IRS Case #2
The client owns a business. The client was unexpectedly notified by the IRS of missing tax returns. The client believed the IRS made an error. We worked with the IRS and the client to refile the missing tax returns. The IRS charged the client IRS tax penalties.
We prepared a case to abate IRS tax penalties based on “Death, Serious Illness, or Unavoidable Absence and Mistake was Made.” We also included language to abate IRS tax penalties under the First Time Penalty Abatement program.
The IRS removed $11,000 of IRS tax penalties under the First Time Penalty Abatement program. This represented a significant portion of penalties charged. Click Here to read more about this case and the steps we took to abate the IRS tax penalties.
IRS Circular 230 Disclosure: To the extent this writing contains advice on a federal tax issue, the advice is not intended to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed in this communication.