Failure to file penalty abatement


#1

Received CP14 Dated November 20, 2017 for 2016. Called IRS tax practitioner line explained that the error was not my clients fault but was my fault .Received letter back saying denied due to the fact that the failure on the part of someone else does not explain why you could not have taken care of tax matters yourself.

I am now writing letter to IRS Stating Per IRM 20.1.1.3 I am requesting penalty abatement due to reasonable cause based upon:

Erroneous advice or reliance.

I called my CPA and he assured me that he was going to get an extension for our taxes as he had for the prior 30+ years. Due to an electronic filing error in his office the 4868 did not process.

Any comments would be appreciated.


#2

Hey Steve,
I think the thought process is sound. In your letter, make sure to reference this as an isolated incident (due to the tax practitioner), meets the criteria for reliance, and…most importantly if the determination is not changed with this “new” information you wish to appeal the decision.
Hope that helps,
Jeff


#3

You might want to call and request a ‘one time abatement’, assuming they are current and its their first penalty. This is the IRS version of a get out jail free card… can only be done once but cause is irrelevant. You can probably get it approved verbally with a 2848 POA on file.


#4

Thank you for the thought, but unfortunately the client did not qualify for the FTA.