IRS Penalties – Get Rid of them – Receive Bad Advice – IRS will remove Penalties – Former IRS – Tax Experts

The following deals with the abatement of IRS penalties and interest due to receiving bad advice.

There are several methods of getting rid of IRS penalties, call us today to find out more.

If you have been a victim of bad advice, this will help you rid yourself of IRS penalties

From the IRS IRM 20.1.1.3.3.4 (12-11-2009)

Bad Tax Advice

This section discusses the three basic types of advice that may qualify for statutory, regulatory, or administrative penalty relief from the Internal Revenue Service:

1. Written advice provided by IRS,

2. Oral advice provided by IRS,

3. Advice provided by a tax professional,

Information  the IRS will  consider when evaluating your request for abatement or non-assertion of a penalty due to reliance on advice includes, but is not limited for the following reasons:

1. Was the advice in response to a specific request and was the advice received related to the facts contained in that request? Can that be proved?

2. Did the taxpayer reasonably rely on the advice?

3. Did you pay for that advice?

4. Was the person a professional tax preparer?

5. Is this a one time event?

In the following instances address some situations where penalty relief may not be appropriate even though the taxpayer relied on written advice from the IRS regarding an item on a filed return:

1. The taxpayer did not reasonably rely on the advice regarding an item included on a return if the advice was received after the date the return was filed,
2. A taxpayer may be considered to have reasonably relied on advice received after the return was filed if they then filed an amended return that conformed with such written advice.

3. A taxpayer may not be considered to have reasonably relied on written advice unrelated to an item included on a return, such as advice on the payment of estimated taxes, if the advice is received after the estimated tax payment was due.

4. Did the taxpayer, or their authorized representative, provide the IRS or the tax professional with adequate and accurate information? The taxpayer is entitled to penalty relief for the period during which they relied on the advice.

The period continues until the taxpayer is placed on notice that the advice is no longer correct or no longer represents the Service’s position.

5. The taxpayer is placed on notice as the result of any of the following events that present a contrary position and occur after the issuance of the written advice:

6. Written correspondence from the IRS that its advice is no longer correct or no longer represents the IRS’s position,

7. Enactment of  tax legislation or ratification of a tax treaty,

8. A U.S. Supreme Court decision,

9. The issuance of temporary or final regulations,

10. The publication of a  IRS revenue ruling, IRS revenue procedure, or other statement in the Internal Revenue Bulletin.

Tax  Form 843, Claim for Refund and Request for Abatement, is required to be filed to request penalty abatement based on erroneous written advice by the IRS.

However, if Form 843 is not filed and the information provided demonstrates that abatement of the penalty is warranted, the penalty should be abated, whether or not a Form 843 is provided.

The information required to be provided includes:

1. The taxpayer’s written request for advice,

2. The erroneous written advice furnished by the Service to the taxpayer and relied on by the taxpayer, and

3. The report (if any) of tax adjustments that identifies the penalty or addition to tax and the item relating to the erroneous written advice.

Getting penalties and interest abated is a specialty. As Former IRS agents we know the exact requirements to give these cases there very best shot.

These cases require documentation and a great deal of expertise.