Penalty Removal

[ChEAr$]

Added thoughts

In Danny's case, client supplied the figure, she had no reason to question it, so she did no wrong and has no liability to client to reimburse any penalty.

The regulations I referred to above are meant in extreme cases where client does nothing wrong yet relies on (what he thinks is) competent tax help. Any tax pro who was the preparer of such a return should use this regulation (1.6661-6) sparingly and judiciously,
for yes, it might open him up questioning. But I've used it twice and nary a word from IRS.
yes, those two were my mistakes.

JohnH, I smiled when I read your question, for I could see from where you were coming.
Thank goodness these are the exception.

for Travis: in Danny's case if client assents to a 1040x, the interest should be added as a footnote on
page one and a check sent for tax and interest.
IOW, present IRS with their due minus the penalty and they will regard the 1040x as a "fait accompli".

[travis bickle]

thanks for sharing,

In Danny's case, client supplied the figure, she had no reason to question it, so she did no wrong and has no liability to client to reimburse any penalty.

The regulations I referred to above are meant in extreme cases where client does nothing wrong yet relies on (what he thinks is) competent tax help. Any tax pro who was the preparer of such a return should use this regulation (1.6661-6) sparingly and judiciously,
for yes, it might open him up questioning. But I've used it twice and nary a word from IRS.
yes, those two were my mistakes.

JohnH, I smiled when I read your question, for I could see from where you were coming.
Thank goodness these are the exception.

for Travis: in Danny's case if client assents to a 1040x, the interest should be added as a footnote on
page one and a check sent for tax and interest.
IOW, present IRS with their due minus the penalty and they will regard the 1040x as a "fait accompli".

this is something i will want to keep in mind.

[geekgirldany]

Thank you guys for posting. Well I reviewed the adjustment. Ummm they did not allow any tax deduction. Property, state or sales tax. So I am going to have to call anyways.

[ChEAr$]

Good grief!

Thank you guys for posting. Well I reviewed the adjustment. Ummm they did not allow any tax deduction. Property, state or sales tax. So I am going to have to call anyways.

Nothing? At least he's entitled to the standard table amount.

Maybe it's time to convince client to let you look at his booklet and add up the
tax.

[geekgirldany]

That's the thing I already did that.

[sea-tax]

Geek, this might be to late but you may want to see if you can get this transferred to a local office for audit. I had two of these mailin audits one I transferred to a local office and one did not. I am sure I don't need to tell you which one faired much better. Usually when you are talking directly to a specific indiviual and face to face I seem to get better results.

[geekgirldany]

How do the offices work? This one is located in Atlanta Georgia. I suppose there is one for main in audits and then other offices for field exams.

Well I am just surprised on what I read. There are several other mistakes. I might have to get it moved. I am going to try and call tomorrow. Not sure I will get to talk to anyone or not.

[ChEAr$]

whatever you do,

How do the offices work? This one is located in Atlanta Georgia. I suppose there is one for main in audits and then other offices for field exams.

Well I am just surprised on what I read. There are several other mistakes. I might have to get it moved. I am going to try and call tomorrow. Not sure I will get to talk to anyone or not.

stay away from Atlanta if possible. Is it worth the trip down to the Hotlanta when you might can handle it via mail? I know it's not far mileage wise, but time wise, gasoline !!!!, and
your time. Will client pay your standard hourly rate for travel also?

You said he's willing to bit the bullet, so let him.