FTA penalty waived

[Taxadvisor VA]

TP lost her Dad in Jan. 2014 and had to deal with all the issues of burying a parent. She did not file 2013 and didn't extend it either. In June 2015, she contacted me to do 2013/2014 for both her & her dad. In addition, I prepared a trust return.

Now, she owed tax in 2013 including Failure to file & Failure to pay penalties. She has paid them. Thanks to the smart people who help others like me on this message board. I learned about FTA- First Time Abatement waiver, which covers three areas and three areas only.
1) Failure to file penalties. (FTFP)
2) Failure to pay penalties. (FTPP)
3) Failure to deposit penalties.

She just received an IRS CP 2000 for 2014 with FTFP & FTPP. Should I consider appealing using the FTA mantra even though she was assessed these 2 penalties for 2013? I understand IRS does have a provision in this FTA which says "to qualify you must not have been assessed any other penalties of a significant amount on the same type return within the past three years and must be inb compliance with all filing and payment requirements." My argument is she went through an enormous amount of grief filled months, which caused her not to file.

What do you think?

Thanks in advance,

Taxadvisor VA

[TAXNJ]

Try

TP lost her Dad in Jan. 2014 and had to deal with all the issues of burying a parent. She did not file 2013 and didn't extend it either. In June 2015, she contacted me to do 2013/2014 for both her & her dad. In addition, I prepared a trust return.

Now, she owed tax in 2013 including Failure to file & Failure to pay penalties. She has paid them. Thanks to the smart people who help others like me on this message board. I learned about FTA- First Time Abatement waiver, which covers three areas and three areas only.
1) Failure to file penalties. (FTFP)
2) Failure to pay penalties. (FTPP)
3) Failure to deposit penalties.

She just received an IRS CP 2000 for 2014 with FTFP & FTPP. Should I consider appealing using the FTA mantra even though she was assessed these 2 penalties for 2013? I understand IRS does have a provision in this FTA which says "to qualify you must not have been assessed any other penalties of a significant amount on the same type return within the past three years and must be inb compliance with all filing and payment requirements." My argument is she went through an enormous amount of grief filled months, which caused her not to file.

What do you think?

Thanks in advance,

Taxadvisor VA

Sounds like it is worth a try. Most they can do is reject. Doesn't hurt to try.

[taxea]

extreme emotional distress?

[BOB W]

extreme emotional distress?

I tried with the death of a male spouse but was turned down. $3,500 penalty. I think it only applies to payroll issues.

UPDATED: I am in error, it applies to all returns.

[TAXNJ]

Consider

Consider looking at:

NOTE: research should not be limited to references shown below.

1. IRCSection6651(a)FailuretoFileaReturn
2. IRCSection6651(a)(1)FailuretoFileaTaxReturn

Also, IRM 20.1.1.3.3.1 (Penalty relief section)

May or may not apply to your scenario but insights on penalty relief.

Keeping in mind that each case applying for relief may be unique and differ.

Good luck

[Kram BergGold]

FTA No Try Reasonable Cause

The FTA is mechanical. Your client does not qualify so it will not work. You have to go the Reasonable Casue route.

[Gretel]

The FTA is mechanical. Your client does not qualify so it will not work. You have to go the Reasonable Casue route.

This is what I would do. In one case they did not accept the reasonable cause but abated as FTA. It was a different penalty though.