Business wrote:
- quote -


But IRC Sec. 6603 provides authority to make a cash deposit
to pay tax NOT yet assessed at the time of deposit. The
situation described in the original post sounds like a
return filed late, assessment, and notice and demand.

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PaulTry wrote:
- quote -

If you think you have a chance of getting the amount reduced
further, but want to stop the accrual of interest, send the
amount due in as a deposit in the nature of a cash bond. If
you follow the regulations, you will be able to stop the
accrual of interest, but will also be able to get the money
back just for the asking - i.e., the IRS isn't entitled to
keep it against your will. See Code Sec. 6603 and the
regulations thereunder. Keep in mind, though, that if you
take your deposit back, all of the interest that deposit
prevented will be added back in since you have agreed to the
underlying tax dispute. See Code Sec. 6603(d).

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RJN wrote:

- quote -

You will not get interest abated. Penalties are abated for
reasonable cause. The fact that she did not think she had to
file is not reasonable cause unless she relied on written
advice from the IRS.

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RJN wrote:

- quote -

Your accountant gave good advice - you/she should pay the
balance due now. Interest won't be abated unless an IRS
error caused the interest assessment. Interest will
continue to accrue on the unpaid balance. Penalty may be
abated for reasonable cause but not for willful neglect. IRS
will want to know the reasons for her delinquency. Did she
know or should she have known she had capital gains? Was she
physically and mentally able to file? Did she seek filing
advice from a tax professional and/or the IRS? If she can
make a case for abatement, she will receive a refund of any
overpayment.

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"RJN" <rjntx[at]rjnelson.com> wrote

- quote -

Better than average on having additional penalties (but not
the interest) abated.

Worse than average at getting them to do so after the money
is in their pockets.

--
Paul Thomas, CPA
paulthomascpapc[at]bellsouth.net

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"RJN" <rjntx[at]rjnelson.com> wrote:

- quote -

Does this mean you've gotten a bill?

- quote -

The applicable additions to tax would be

Late filing penalty
Late payment penalty
Estimated tax penalty
Interest

What was abated?

- quote -

If all that's left is late payment penalty and interest, the
chances are nil. There's not much hope for estimated tax
penalty. If late filing penalty is still on the account,
that's your best shot for a "reasonable cause" abatement.

--
Phil Marti
Clarksburg, MD

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A number years ago my daughter did not file a return because
she was not working but as it turns out she had some capital
gains income. Anyway, we filed a return and about half of
the amount due is penalties and interest.

My accountant and I (we have power of attorney) were on the
phone with a helpful IRS agent and said we could pay the tax
due but asked for some abatement of interest & penalties.
She was able to reduce the amount due somewhat right then
and there on the phone. She said that was all she could do
at that point but we might be able to get more penalties
removed if we write a letter.

My accountant's advice was to send in the reduced amount due
right away and send a letter asking for further abatement.

My question is what are the chances of further abatement and
the IRS refunding something that they already have received.

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