Appealing a denial of reasonable cause


My client wanted me to file an extension for his 1065 and his personal return. I filed the extension for his 1040 but forgot to file the extension for his 1065. I had already completed the 1065 but I filed it late. I filed the 1040 on time and included schedule K1 from the completed 1065. As a result he was penalized for not filing on time.

I wrote to the IRS explaining that my client did inform me to file the extension for 1065 and since I had filed the 1040 on time with the Schedule K that he had no idea that I had not filed the extension for the 1065. Their response was “The information submitted doesn’t establish reasonable cause or show due diligence. Therefore, we must deny your request for penalty adjustment.”

Do I have grounds to appeal this first ruling or should I try for 1st time abatement if it’s available?



I would ask for the first time abatement before you appeal. Then if they do not allow it appeal. I would call the practitioner line and ask for it first. Then you may get a response much faster.