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Delinquent returns

Technical topics regarding tax preparation.
#1
taxcpa  
Posts:
215
Joined:
29-Apr-2014 6:47am
Location:
USA
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  
Posts:
8
Joined:
29-Jan-2015 2:22pm
Location:
United States
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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1211
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31-May-2014 8:34pm
Location:
MA
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  
Posts:
215
Joined:
29-Apr-2014 6:47am
Location:
USA
Any suggested wording to include in the letter?
 

#5
HowardS  
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1151
Joined:
21-Apr-2014 3:12pm
Location:
Southern Pines, NC
File the 2017 return first. FTA requires the taxpayer be current with filings or request abatement after the penalty has been assessed.
I suffer from depreciation.
 

#6
Doug M  
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2969
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22-Apr-2014 1:09pm
Location:
Oregon
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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