IRS Appeals

Here’s a quote from a website on IRS appeals that I found. The site belongs to Joe Mastriano, a highly experienced CPA with a lifetime of experience in tax problem solving and IRS representation…

Appealing Failure To File Penalty Code 6551

1. We will consider the reasons to address removal of this penalty. Some of the most common ones are:

You mailed returns and payments in a timely manner. You used the wrong address. You relied on information from the IRS. You had an illness or death in the family, were a victim of a fire or flood. You couldn’t get the information to file on time. You were given wrong advice by an attorney, etc. Prepare as you would, a regular affidavit.

If you are looking for a good penalty removal, please visit our website at www.taxproblem.org.

This is a big penalty. 5% per month for up to 5 months from the date the return was due. It is 5% of the tax liability at the due date. So let’s say you owe $1,500,000 as of the due date. Then two months later you pay the whole thing, but do not file the return until 8 months later. You may think that the penalty is only for two months because the liability was paid off. How can they charge a penalty based on a liability that doesn’t exist anymore? Well the IRS says they can. I encountered just this very case. I even did an IRS appeal based on the fact that I told taxpayers that they could file the return late. I said that since it was paid, they didn’t have to worry. Since this is not something that the taxpayer should or would have known, and is complicated enough to seek professional advice, they should have had the penalties removed. This is a great example of how the IRS will force issues to tax court. This is why you must try to head off IRS problems by first filing and paying in a timely manner, making sure the IRS has your correct address. You should also contest IRS letters and notices at the time you receive them.

All you need to know about taxes and the IRS is available freely on Joe Mastriano’s website, and he also has a comment section where he provides quick tips and advice to his users. If you are ever in need of help with affidavits, call Joe Mastriano’s office and you’ll be in safe hands.

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