Accuracy related penalty

[arlo]

Has anyone had any luck in getting an accuracy related penalty removed.
The clients mother owned an ll20S corp that her son was an employee. The mother
reported all the income on her return. She died The 1120 S corp was given to
sons. Sons took a salary and reported on their tax returns. They were not told
the k-l had to be reported also. So a 20% accuracy penalty A CPA firm did their
1120 I did the 1040. What do you think their odds are?

[gboykin]

I have had luck having the accuracy related penalty abated on a return that I made a mistake on. Client printed out their W-2's, and had 2 different W2's clipped together. The amounts were so close, that because they were clipped together, I assumed they were the same W2's. IRS changed the return to include the missing W-2. As soon as the tax was paid, we asked for penalty abatement, and it was accepted.

[Gary2]

As long as we're on the subject, what if the taxpayer has signed up for an installment agreement? Must they wait until it's paid off to get the abatement?

[gboykin]

Ironically, this particular client needed an IA. theIRS wouldn't do anything until the IA was in place. As soon as they had the IA in place, I sent the penalty abatement letter. It was accepted a few weeks later.