I have a client that has a $10,000 civil penalty on a 2007 1040.He had a levy on his wages that could only be removed by entering into an installment agreement which I did for him.The PPL said they sent a memo to the group that put on the penalty and it would take 60 days to hear back.No one will give me any other information on this penalty.Taxpayer Advocate says they can not do any thing till after 90 days.Anyone have any ideas on what to do?The taxpayer filed a return a 2007 return and received a refund.
-
-
Civil Penalty
MLinder,
I have not experienced a time when the IRS has not given a reason for a penalty. And it is presumed that a letter would have also been sent to the client listing what the penalty was for. I do not think that you or the client would or should be left out of the loop with regard to what this penalty is or was. Also, if it is abate-able for reasonable cause, this should be checked too if not already in progress.
Have a great day!!
rfk -
Civil Penalty
All they say it is a civil penalty and must go to this group that handles frivolous penalties and you can not speak to them and they will notify me in 60 days with the info.I assume my client received some paper work but he says he did not.I can not fight what I do not know what it is.This is a first for me also.Comment
-
Frivolous
Let me run it by another colleague; see what he thinks. But sounds like a "frivolous" penalty.
rfkComment
-
civil penalty
that is what it is but if they will not tell why he received the frivolous penalty how can you fight it.Comment
-
Frivolous Penalties
Hi MLinder,
Okay, spoke to colleague, and he said the penalty is usually $5,000; is wondering why it is $10,000. But he said to look at the 2007 return and see what it is going with the it. What are the red flags?
Section 6702 is something to look at and the following link too:
Hope this sheds some light; but have to check why return is frivolous and why $10K and not $5K.
Take care.
rfkComment
-
civil penalty
I did the 2007 return and there is nothing on it.He received his refund.I will just have to wait till they send me the paper work and I see if a 1040X was filed and if that is the problem.Comment
-
Don't want to run up the red flag too early, but if you prepared the original return and you're pretty sure everything was on the up and up, there may be an identity theft issue lurking in the shadows here."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
-
civil penalty
That is what I am thinking also but must wait till IRS gives me some info.Comment
-
I trust you've gotten a POA or at least TIA. Shouldn't that get you relatively quick access to everything? (I don't know - I don't handle those sorts of things, at least not yet.)Comment
-
Just Wait
Like you and Gary, said have to wait if there is a ID theft issue. Good luck.
rfkComment
-
civil penalty
since it is a frivolous penalty I am told it is handled by this special group and you must wait till they mail you the info.Comment
-
A penalty for filing a frivolous return is what they give to tax 'protesters'. Make sure he didn't file an amended return claiming zero wages or some such thing. I suggest also getting a POA and checking his account online to see if anything else was filed, either by him or in ID theft.Comment
Comment