Delinquent returns

Technical topics regarding tax preparation.
#1
taxcpa  
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Working with a relative (great) to get them compliant for 2016 and 2017.

2017 looks like it will work out OK, but 2016 will have a significant balance due. They are prepared to pay up.

What are my chances of getting any of failure to file failure to pay penalties abated? I haven't had one of these in a long while. Any magic words out there?
 

#2
PDACPA  
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First Time Abatement should get them waived, but good luck getting through to the IRS. Once they penalties are assessed, have them pay any unpaid tax and interest and issue a letter requesting the abatement.
 

#3
ATSMAN  
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Whenever taxpayer is eligible under the First time penalty abatement program, I file a paper return with a cover letter requesting first time penalty abatement. 90% of the time this works and the failure to file penalty is waived and you are paying interest on balance due.
 

#4
taxcpa  
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Any suggested wording to include in the letter?
 

#5
HowardS  
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File the 2017 return first. FTA requires the taxpayer be current with filings or request abatement after the penalty has been assessed.
Retired, no salvage value.
 

#6
Doug M  
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Any suggested wording to include in the letter?


Here is a suggestion from this article

Requesting an FTA
By phone or e-services: A practitioner who determines that the client qualifies for an FTA can request it in several ways. Start with simple methods. If the client’s case does not involve a compliance function, call the IRS Practitioner Priority Service (PPS) or use the IRS e-services Electronic Account Resolution function. The IRS representatives in Accounts Management have authority to grant an FTA.

https://www.thetaxadviser.com/issues/20 ... y2013.html
 


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