Recently the IRS Office of Chief Counsel advised that taxpayers with a record of prompt filing of returns and prompt payment of (or prompt arrangement to pay) their federal income taxes for at least the last three years can qualify for automatic penalty abatement. The automatic abatement applies to late-filed returns or late tax payments.
We have found that what is supposed to be automatic often is not. Therefore, we directly present the IRS with the facts and the abatement actually takes place. Usually that is enough.
For taxpayers whose records are not up to the IRS standard, but who have “reasonable cause” for late filing or late payment, we have a good track record of obtaining penalty abatement.
Call us if you have an IRS penalty that needs our help.
This post was written by LeRoy Metz.