- quote -

You'll usually get just one shot at abatement approval by a
front line IRS employee. If your request is denied, your
accounts will be coded as such, but you will be given the
right to appeal. You indicated in another post that you
signed the returns and wrote a check to the preparer for the
balance due. Did he cash the check and keep the funds? Do
you have canceled check, correspondence, or other
documentation to support your position? You'll need to
present a solid, convincing case, and the best way to do
that is through a tax pro experienced in abatement
procedures. If you choose to go it alone, study the IRS
Penalty Handbook, which the IRS will follow when
adjudicating your case, and which you can find at:

http://www.irs.gov/irm/part20/index.html

Good luck!

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Sean wrote:
- quote -

Ah, so it was a tax professional you relied on; so much the
better for having "reasonable cause" (memorize those two
words) to get the penalties removed. Doesn't matter
whether or not this tax pro was paid or not; you had
mentioned a family friend.

In order to "dot all the i's and cross all the t's", I
recommend you find a local Enrolled Agent (EA), or CPA with
tax knowledge, to handle the matter for you. He will know
who to contact and how to follow up on your case.

For (another) CPA or EA you might consult your local Yellow
Pages, or even the National Association of EA's website:
www.naea.org

And for all laymen out there reading this, remember, never
make out a check for taxes to your tax preparer. Always
make a check out for the exact amount to "U S treasury"
and/or youR state department of revenue for state taxes.

ChEAr$,
Harlan Lunsford, EA n LA

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

- quote -

Thanks for the tip on what not to say. He was actually a
CPA, he is deceased now though. Is it wise to fill out the
abatement form myself, or seek professional help?

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"Fred Williams" <fred.williamss[at]yahoo.com> wrote:
- quote -

I actually filed the taxes for the missing years with the
IRS so the numbers that they are using should be correct. Is
there another method that you are suggesting to double check
the amounts? I am emplyed so I do have a limited ability to
pay.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"Paul Thomas, CPA" <paulthomascpapc[at]bellsouth.net> wrote:
- quote -

What do I need to start this process? How I successfully get
an abatement? Is there anything specific I should state or
not state?

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Harlan Lunsford <hnslunsford[at]bellsouth.net> wrote:
- quote -

I was scammed. I did sign the return and knew there was a
balance due and wrote the check out to him and never vefied
anything. Dumb, I know. *Please* don't rub it in.

- quote -

He was a professional. He was a CPA. He has since passed
away (about a year ago).

- quote -

If I could get the penalties removed, that would be better than
nothing.

- quote -

Thats exactly what I *did* want to hear, the facts. Hiding
my head in the sand wont help and I thank you for your help.
What should my next formal step be?

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

bigloverq[at]gmail.com wrote:

- quote -

Some optimism expressed by other posters, but I'm not
hearing any reasonable cause in these circumstances. No
judgments - just some observations: Multiple years
delinquency, no ordinary business care and prudence, no
reliance on a tax professional. If you submit a request for
abatement, be sure you don't start with, "Due to
negligence...on my part..." That would immediately
contradict reasonable cause.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

bigloverq[at]gmail.com wrote:

- quote -

You are unlikely to get the interest reduced but you have a
possibility of getting the penalties reduced. However, do
not panic. In the menatime you can get into an installment
agreement to pay the balance with little difficulty. If you
are unable to pay ANYTHING monthly, it is possible to have
payments suspended until you are able to pay.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

bigloverq[at]gmail.com wrote:

- quote -

Penalties can be reduced or waived but generally not
interest. You should first make sure the back taxes owed
are correct (don't depend on the IRS!). If the amount owed
will "put you into financial ruin" you should talk with a
tax professional about "Request for Penalty Abatement" (IRS
Form 843). Depending on your circumstances you could
consider an installment plan or possibly an offer in
compromise if you are unemployed.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

<bigloverq[at]gmail.com> wrote

- quote -

You can ask for the penalties to be abated for cause, and
spell out the facts as they happened. Understand that it's
possible that penalties will ~not~ be abated in the end
because your friend wasn't a tax professional (that's been
an out in the past). Focus on what you did to assure that
your returns were prepared and filed to the best of your
abilities. Basically, what did you do to get the returns
completed and filed, and what part did the "friend" not do
that you entrusted him/her to do. Then see what they say.
Remember it could take several weeks and even a few months
before you get a reply.

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

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

bigloverq[at]gmail.com wrote:

- quote -

Right here let's consider what happened. Your "friend"
wasn't "doing" your taxes, and even if he had prepared
returns, he could not have filed them for you, since it is
always necessary for you to sign your return before it is
filed. That fact alone should have put you on notice
heretofore. This fact sets the stage for what follows.

(and for the record so other respondents might know, this
"friend" might have had a POA from OP in order to file tax
returns, but from the sound of it, I doubt this was the
case. Besides, how could he have paid the balances dues
without knowledge of OP?)

- quote -

Okay, you've taken the blame so we don't need to judge you.
Facts speak for themselves.

Now IF you had hired a professional and he had done
something to cause these penalties, you would have a valid
reason for seeking relief from penalties, since you would
have relied on what would appear competent help. But
there's no such relief that I know of (short of throwing
yourself on the mercy of the IRS and literally begging) to
get said penalties removed.

Interest however, is another matter. Since you had the use
of money not paid over in a timely fashion, you do owe the
interest.

I know, not what you wanted to hear, but those are the cold,
hard facts.

ChEAr$,
Harlan Lunsford, EA n LA

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Hello group, I would certainly appreciate the advice of the
professional here because this situation could put me in
financial ruin. Heres the story:

Due to negligence/trust on my part, a friend of the family
had been doing my taxes for years 2001-2004. I just found
out that he did NOT file 3 of those 4 years. I did the
filing myself recently and got a refund for one year, but
owed the IRS for 2 years in the amounts of $1,950.00 and
$1,820.00. The IRS has just sent me a letter telling me what
I owe with the included penalties and interest, a whopping
$3,970 for the one unfiled year and $3,240.00 for the other.
I do not have the funds to pay all of this. I could handle
the original owed amounts (although it would be *very*
difficult). What I am asking, is there ANY way to get either
(or both) of the interest or penalties removed or reduced??
I realize that I made a huge mistake in trusting another
with my finances and have learned from my mistakes, please
dont judge me.

Thanks in advance.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >