Request for Penalty Abatement?

[zeros]

Many years ago I had a statement that one could put on a response letter and the IRS had to rebate the penalty according to a code. I used it a couple of times as I recall and it worked. I have since lost the exact wording to say or what regulation to refer to. Long time ago now.

Does anybody remember this?

[ChEAr$]

Many years ago I had a statement that one could put on a response letter and the IRS had to rebate the penalty according to a code. I used it a couple of times as I recall and it worked. I have since lost the exact wording to say or what regulation to refer to. Long time ago now.

Does anybody remember this?

No, but remember that IRS does not HAVE to abate any penalty. The IRS website has vast literature on penalties and possible reasons for abatements. Some they simply will not abate, but most others may be abated based on reasonable cause.

also use Google search engine with term 'IRS penalty abatement" for a whole bunch of hits on the subject.

[oceanlovin'ea]

If I remember correctly several years ago, Bryan Gates had a seminar or a CD with many letters to cover different situations dealing with IRS.

He still lectures and is an IRS approved CE instructor. He has the American Academy of Tax Practice. You might check his website or contact him to see if he still has something like that.

Linda, EA

[John of PA]

There are certain acceptable cause that IRS usually will waive a penalty for, such as serious health issues, or being out of the country.

[Gretel]

I also had luck just using the phrase "for reasonable cause" as reasonable cause not giving any more explanation. You need to keep in mind that entry level employees have a check list they use and if they see "reasonable cause" it makes them happy.

[oceanlovin'ea]

Gretel

Such a simple thing. Thanks for reminding us to include that in our letters.

Linda, EA

[New York Enrolled Agent]

Many years ago I had a statement that one could put on a response letter and the IRS had to rebate the penalty according to a code. I used it a couple of times as I recall and it worked. I have since lost the exact wording to say or what regulation to refer to. Long time ago now.

Does anybody remember this?

Abatement of penalties is discretionary on the part of the IRS.

You asked about which regulation you could use. If the penalty you wish to abate is an accuracy related penalty under §6662, use Reg. §1.6664-4 (reasonable cause and good faith exception) for guidance.

If the penalties are for late filing/late paying in §6651, reasonable cause is referenced in Reg §301.6651-1(c).

A very full source of information can also be found in part 20 of the IRM (the penalty handbook)

[OtisMozzetti]

Abatement of penalties is discretionary on the part of the IRS.

You asked about which regulation you could use. If the penalty you wish to abate is an accuracy related penalty under §6662, use Reg. §1.6664-4 (reasonable cause and good faith exception) for guidance.

If the penalties are for late filing/late paying in §6651, reasonable cause is referenced in Reg §301.6651-1(c).

A very full source of information can also be found in part 20 of the IRM (the penalty handbook)

I think that New York EA has covered it very well, about the discretion which the IRS has and exercises concerning penalties.

The only thing I would want to also mention is that I try to rely upon an explanation of the reasoning not just upon a dumping out of some catchwords like "reasonable cause".