Penalty Abatement

[Kurly]

Have a new client that brought me her S-corp information on 12 April. Therefore a month late. I explained to her that she was late and may get a penalty.
She has received a letter from IRS for a penalty of $195. She only had total net income of $3733 (gross $6000) on S-corp and a W-2 for $8200. Are there any reasonable
cause suggestions that I might come up with to request that the penalty be abated? The only other income she has is that she and daughter live with
her mother.

Thanks All

Kurly

[luke]

letter

A simple letter to IRS requesting abatement of penalty - using "taxpayer was not aware of March 15 deadline" (has worked for me in the past esp. if its the 1st time it was filed late)(can also include that such a penalty will cause undo hardship on small taxpayer)
Good Luck!

[taxea]

Have a new client that brought me her S-corp information on 12 April. Therefore a month late. I explained to her that she was late and may get a penalty.
She has received a letter from IRS for a penalty of $195. She only had total net income of $3733 (gross $6000) on S-corp and a W-2 for $8200. Are there any reasonable
cause suggestions that I might come up with to request that the penalty be abated? The only other income she has is that she and daughter live with
her mother.

Thanks All

Kurly

You may be able to get a one time abatement of the penalty but consider whether it is wise to ask for it or whether to teach the client a lesson about the seriousness of following the rules. Based on the low income I would hope this would be a lesson learned. There may be a time in the future that waiving the penalty would be more appropriate.

[DexEA]

You may be able to get a one time abatement of the penalty but consider whether it is wise to ask for it or whether to teach the client a lesson about the seriousness of following the rules. Based on the low income I would hope this would be a lesson learned. There may be a time in the future that waiving the penalty would be more appropriate.

You really would consider not taking 10 minutes to assist your client to save $195 because you want to teach them a lesson? Really?

[Gary2]

You really would consider not taking 10 minutes to assist your client to save $195 because you want to teach them a lesson? Really?

Besides, the fee for writing the abatement request should be enough of a lesson. Just be sure to advise the client that the fee is not contingent on actually getting the abatement.