Interest charges

[Acownt4it]

My client had to file a 1040X because her deceased father's trust filed the original 1041 incorrectly. My client had taxes due on this 1040X and submitted payment when filed. She received a letter stating she owes interest. I would like to reply and ask for the IRS to remove the interest charges due to the fact that this was not willful neglect and as soon as she was aware of taxes due, they were paid.
Wondering what chances you all think I may have in this request and if any one has any other suggestions.

[Bird Legs]

IRS Interest Charges

If you do not write the letter asking for removal, the chances of removing them are zero.
By writing a letter asking for removal of interest, your chance increases by about 1%.
Remember, interest is mandatory and cannot be abated except in the following circumstances:
1: Interest attributable to a deficiency or a delay in payment caused in whole or in part by an unreasonable error or delay of IRS personnel in performing ministerial or managerial acts.
2: Interest during the extended period for filing and paying tax in a presidentially declared disaster area.
3: Interest on erroneous refunds until the date the IRS demands repayment (provided the error was not caused by the taxpayer and the refund is $50,000. or less).
See page 16-3 of the Quickfinder 2004 Handbook.
Just remember, if you never ask, you never receive.

[Mark Goldberg]

Forget writing

My understanding is, the IRS can not remove interest unless it is a mistake on their part (and they are loath to admit to this). They can only remove penalties. So my advise is don't waste your time writing. The interest will only increase during the interim.

[taxmandan]

Interest charge

I would send a bill to the fiduciary of the trust for the interest amount, since it was their screwup that caused the charge. Whether they'll pay it, well, that's probably more likely than the IRS abating the interest.

[Acownt4it]

Thanks

for your help, again.