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    Penalty abatement

    Just got off the phone after having a nice chat with a friendly (pre-Everson kinder-gentler) IRS Jane Doe with regard to the one-time penalty abatement (discussed by M. Goldberg on 9-27).

    Sounds like a good deal. She said that you could just ask for the one-time penalty abatement in a letter or note without giving any cause and it "generally" would be accepted and granted (that's what I hate about those agents-she was 95% knowledgeable, not 100% and "generally" can mean different things to different people). I think I'll send some sort of flimsy "cause" anyway, just in case. She confirms Goldberg's advice to use, if you have it, "real" reasonable cause and save this "get-out-of-jail-free" card for later if you have another year with weak or no cause.

    I also asked which return the abatement is applied to if you send multiple returns. Initially, she said it was the first tax year that was due, but after I pressed her a bit about it, she looked it up and said it was the first one received. I don't think she was ever really sure about that, so I'm going to send in the one I want it to be applied to first, then wait for it get in the works good and the penalty notice to be generated on it. After that happens I'll send in the other returns and follow shortly thereafter with the specific year penalty abatement request letter.

    She said there's no special mailing address and that the "reasonable cause assistor" we've been talking about is actually her department which is called "Accounts Management." Said it should just be sent to the service center where the notice originated and I could write "Accounts Management" on the envelope if I want to, but no matter what you write on it, the receivers open the envelope anyway to determine for sure where it should go. Then they automatically forward it to her department if it concerns penalties.

    One downside: she said all delinquent returns must have been filed and the tax for the penalty year requested must have been paid before the penalty abatement will be granted. Bad news for my financially-challenged (broke) clients who want to make installment payments

    The phone number is 866-860-4259 .-----Black Bart

    #2
    Penalty abatement

    The assistor is correct, the tax MUST be paid before theirs will abate any penalties. The abatement has on occasion been done automatically, without the letter requesting it even being sent, but not something to expect.

    Daniel
    "A man that holds a cat by the tail learns something he can learn no other way." - Mark Twain

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      #3
      not bad

      That's not bad news. Clients aren't going to pay the penalty now anyway. Later a nice record on the installment agreement will support penalty abatement.

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        #4
        To: the Vinegar Man

        Please! A little more respect for my client, if you will. He does indeed intend to pay his just debts and penalties. How do I know this? Why, he gave me his word. What else do I need? Besides, he already has a record. In fact, he'll be out any day now.

        P. S.
        The IRS rep said penalties $99 and under could be handled over the phone. Anything above that has to be in writing.

        Comment


          #5
          he intends to pay

          Well, if he does intend to pay his penalty, then what exactly is the question?

          V

          Comment


            #6
            Question?

            Aw, don't take it so personally. There wasn't any question. I was just posting that for the benefit of those on the board who may (or may not) be interested. Education is never a waste of time; even for a Yankee.

            In the future, would you mind prefacing your remarks with the prefix -- "Pretty please with sugar"? Thanks.

            Comment


              #7
              Sorry

              Sorry, that prefix contains three words whose meanings I am not familiar with.

              Comment


                #8
                Vinegar Jay

                Okay, fair enough. Never let it be said that I callously dissed a board member. You can preface your speech anyway you want; and not because I say you can can and not because I say you can't.

                I don't mean to take umbrage lightly; it's just that your posts occasionally have the finesse of a bulldozer and that kind'a grates on my Southern sense of cordiality. But...that's your style and you're entitled to it. As dmj4 recently (9-25/"Audit") said, "your tax knowledge is impressive," and I happen to agree with that.

                You recently said (9-28) under The Full Gabriele's post, "Oil Field Worker," that "I post often on this and other forums and hardly anybody ever agrees with me." I disagree with that. I (and, I'll bet several others) do concur with your conclusions many times for no other reason than you make good sense and you're right. It just seems that the messenger is killing the message. You could work on that. Or not.

                Other than that I'll say no more except in self-defense. Regardless of perceptions and receptions of your contributions, I believe that your wisdom is obvious and appreciated
                here.

                Best regards.

                Comment


                  #9
                  don't always agree

                  Thank you. I myself don't always agree with what I post, and certainly if I were this nasty to my actual clients they would all go away.

                  Comment


                    #10
                    OK Tough Guy

                    We're getting to know Yankees pretty well down in these parts. Seems like there's always a bunch of them coming down here to visit, then they buy a house and never go home. We have several things going for us that are downright charming, and no doubt do not exist in your vocabulary. There are good Yankees too - even several of them on this board.

                    We'll dig through your "Vinegar Jay" routine simply because if we can just put up with it long enough, there's usually some pretty sound advice at the bottom of the cowpile. I might add that there are many others with at least your level of knowledge that are gracious beyond expectations, proving that being snide is not a prerequisite for expertise.

                    I'll get off the subject, as I think somehow when we complain about you, we're somehow reinforcing your huge ego. We've had enough of that for shore.

                    By all rights, this post will probably be deleted by the editors - they don't like this on their board and I don't blame them. But maybe they're sick of your comments as well, and would like to see you clean up your act.
                    Last edited by Snaggletooth; 10-05-2005, 11:53 PM. Reason: Addition

                    Comment


                      #11
                      Originally posted by Snaggletooth
                      We're getting to know Yankees pretty well down in these parts. Seems like there's always a bunch of them coming down here to visit, then they buy a house and never go home.

                      That's cause some are not tough enough to hack it up here. We have had 70 to 80 degree weather this week with solid rain for two days. Lots of local flooding. The forcast tonight is for 36 degrees with 20 mile per hour wind and a chance of SNOW.

                      Better dig out my snow blower.

                      Comment


                        #12
                        Has anyone else done this

                        Has anyone else done this since this post was made?

                        Comment


                          #13
                          Back to the abatement topic

                          First to confirm there is a one time get out of jail free card. Also, it used to be all but impossible to get payroll tax penalties abated. Wrote many requests, rarely granted. Lately though, I have had some success. I have one in now that I need to call on it (question of whether I should bug the guy or not, but it's local and he's had it for a long time.)

                          I'll let you all know when I find out.

                          Note, no authority to abate interest so you will always have that. Second note: read the IRS penalty manual before you do these. It tells you exactly what the Service will consider and what the process is.

                          Here's a link:



                          Doug

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