This is a question I get asked all the time, if I take my penalty abatement case to appeals do I have a better chance of winning?
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As a former IRS IRS agent & teaching instructor I can tell you there is no magic wand for getting your penalties abated. Its hard work and documentation.
There are standards, formats or methodologies and IRS must stick to the guidelines of the IRS manual procedures for abatement of penalties.
So, if you understand the guidelines and manual procedures is easier to take the fight to them.
Understanding that there are certain check marks they must have ACCEPT your penalty abatement.
Below you will find a checklist that Iris uses during the penalty abatement process it’s important to know them going into the battle so you know what you’re up against.
The following questions will be used to determine if the taxpayer has established reasonable cause, and should be considered in your final determination.
Your decision must be clearly documented in the ACM, and the facts and circumstances must support the decision:
1. Do the taxpayer’s explanations directly relate to the penalty that was assessed?
2. Do the dates and times coincide with the taxpayer’s explanation?
3. Could the noncompliance have been anticipated and/or prevented?
4. Did the taxpayer make an honest mistake?
5. Has the taxpayer provided sufficient detail (dates, relationships, documents) to determine if ordinary business care and prudence was exercised?
6.Is the taxpayer an individual, third party such as a reporting agent, accountant or lawyer?
7. Is there a history of the taxpayer being assessed the same penalty? BIG!!!!!
8. Were there prior abatements of the same or similar penalties?
Refer to IRM 20.1.1.3.2, Reasonable Cause, for more information.
Know ahead of time the thought process of the IRS before going to battle to WIN.
If you want better chance of winning your IRS appeals decisions , best to call former IRS agent who understands the ways, the tactic& can get IRS penalty abatement’s waived.
