Effective Tax Administration

[taxea]

I am curious to know pros think of this idea:

due to the IRS decision delays I think we should be able to use the Effective Tax Administration reason to get penalty and interest waived.

What do you think?

[taxea]

Really? 46 reviews and no one has an opinion on this?

[TAXNJ]

Reasonable

I am curious to know pros think of this idea:

due to the IRS decision delays I think we should be able to use the Effective Tax Administration reason to get penalty and interest waived.

What do you think?

Sounds like a reasonable position. is there a IRS code section for "Effective Tax Administration"?

Maybe basis of the position is the Commissioner's comments to Congress of limited funds to do their work.

Worth a try and interested in IRS decision.

[New York Enrolled Agent]

The regulations for §7122 provide for effective tax administration in consideration of offers-in-compromise.

[TAXNJ]

Nyea - WHERE MISSING?

NYEA posts “The regulations for §7122 provide for effective tax administration in consideration of offers-in-compromise. “

Also, looked at IRM 5.8.11

But, where would it apply to Original Post question, “due to the IRS decision delays I think we should be able to use the Effective Tax Administration reason to get penalty and interest waived.”


Missing where it would apply to “due to the IRS decision delays…”

Any Suggestion?

[TAX4US]

I think in my case where IRS sent letter saying they would respond in 45 days and now we are 6 months later and still no response. I think wouldn't this give credit to have P&I reduced or even abated?

[taxea]

My point exactly. If it can be used in OIC then why can't we start using it to have penalties and interest waived when the IRS delays over and over again.

[TAXNJ]

Great

My point exactly. If it can be used in OIC then why can't we start using it to have penalties and interest waived when the IRS delays over and over again.

Let us know how you succeed and thanks for setting a precedent.

Something Congress can use ("Effective Tax Administration") as their position to get information they require and have not been getting.

[JohnH]

The only problem would be how the IRS might respond in the future if they were placed under some sort of deadline. They might just routinely deny everything in order to get the paperwork out the door.

More or less how I respond to a salesperson who's trying to pressure me to make a decision on the spot. I generally tell them "IF you absolutely must have an answer right now, then my answer is NO!"

[taxea]

The only problem would be how the IRS might respond in the future if they were placed under some sort of deadline. They might just routinely deny everything in order to get the paperwork out the door.

More or less how I respond to a salesperson who's trying to pressure me to make a decision on the spot. I generally tell them "IF you absolutely must have an answer right now, then my answer is NO!"

They do have a deadline...it is 45 days and they keep sending letters saying they have not finished their assessment, or whatever, and will be taking another 45 days. This goes on and on. I think the interest should stop until their decision is made on the case.

I definitely am going to try this and will let you all know what the result is. I know it is supposed to be used with OIC when applicable, however, why not when they don't meet their own standards/code requirements in other areas.

[JohnH]

They do have a deadline...it is 45 days and they keep sending letters saying they have not finished their assessment, or whatever, and will be taking another 45 days. This goes on and on. I think the interest should stop until their decision is made on the case.

I definitely am going to try this and will let you all know what the result is. I know it is supposed to be used with OIC when applicable, however, why not when they don't meet their own standards/code requirements in other areas.

I suppose one could call that a deadline.
They have a deadlline to send a letter.

But this is an interesting argument. I think they are going to trot out the old "interest is statutory" excuse, but you might have some limited success with penalty abatement. It will be interesting to hear what you find out.

[taxea]

I found a possible answer in Pub 556