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#IRC 6651 HOW TO#

The IRS may address it in a public statement, news release, or formal communication.Īn administrative waiver may be necessary when there is a delay by the IRS in printing or mailing forms, publishing guidance.

Section 7508A: If you live in an area declared a disaster area by the President or an area affected by a terrorist attack, the IRS can abate the penalty for the length of any extension period granted for filing income tax returns and paying income tax.Īlthough §6404(f) is only for written advice, the IRS has extended this relief to include erroneous oral advice when appropriate.Īccording to IRM 20.1.1.3.3.2, administrative waivers consist of the IRS formally interpreting or clarifying a provision to provide administrative relief from a penalty that they otherwise would be assessed.Section 7508: If you are serving in a combat zone or participating in a contingency operation, the IRS can abate the penalty for the length of any extension period granted for filing income tax returns and paying income tax.mail to its proper recipient, the postmark date is treated as the delivery date. The postmark date rule set forth by §7502(a)(1) provides that when a return is properly delivered after its due date by U.S. Section 7502(a): Timely mailing treated as timely filing and paying.Section 6724(a) and (c): To obtain a penalty waiver based on reasonable cause, you must submit a written statement, signed under penalties of perjury, which provides the specific provision under which the you are requesting the waiver, and the facts forming the basis for reasonable cause.You are a newly retired or disabled individual, believe it or not.You experienced a casualty, disaster, or unusual circumstance where it is determined that the imposition of penalties would be against good conscience.

You had no tax liability in the prior year.

Your tax liability for the current year is less than $1,000.

Section 6654(e): estimated tax penalties.

This doesn’t happen often but when it does – get on your high horse and ride!

Section 6404(f) contains a provision for the abatement of penalty that is attributable to erroneous advice the IRS furnished to the taxpayer in writing.

Statutorily the IRC can provide for an exception to the assessed penalty. Was there a good reason for noncompliance outside of your control? Did you fix the noncompliance soon after finding it? Are you committed to being compliant going forward? Did you find the error and self-correct it? Was the noncompliance a one-time incident? Be sure to reflect on and memorialize responses to each of these questions as part of formulating a request. There are six elements of a perfect penalty abatement scenario. If the IRS representative rejects the request, you can provide a more in-depth request by the mail. Generally, it is only effective for administrative waivers, such as the first-time abatement. You can also request the IRS abate a penalty by telephone. If you already filed your income tax forms, paid the tax and the penalties use IRS Form 843, Claim for Refund and Request for Abatement and attach a cover letter requesting penalty abatement relief and simultaneously a refund. This way you mitigate all sorts of procedural kerfuffles. Wait for the IRS to assess the penalty and then send a reasonable cause explanation to the address indicated on the notice from the IRS. If you have not filed your personal income tax form (1040) generally IMHO you should GET THE TAX FORM FILED ASAP without consideration for the yet to be assessed penalties.

#IRC 6651 HOW TO#

How to Submit a Reasonable Cause Claim to the IRS