A $7,000 Abatement. Now THAT's Quite a Statement!

Written by: Haley McClellan​

It all started with a CP14 Notice. With $16, 643.79 listed in bold black letters as the amount due on the letter, it is no wonder the IRS missive caused our member an incredible amount of fright and panic. The fees included in the amount were a collection of additions to the original tax balance due: a failure-to-file penalty of $7,364.07, a failure-to-pay penalty of $5,726.61, and interest charges of $3,552.11. 

Initially, one of our tax analysts, Wyatt Lewis, reviewed the case and called the member to address the penalties and fees. The member explained to Wyatt that while he agreed to pay those charges, he did in fact mail in his return after it was rejected online. He said he could provide a postal receipt to prove that he did so. Wyatt told the member that he would get an audit representative assigned to take a further look into the case and see if the IRS would agree to reverse the charges. The case was then assigned to one our many outstanding audit reps, Judee Post-Greenblatt.  

Judee dove in to take a closer look at the member's situation, and then quickly issued POAs so that she could get started on her contact with the IRS on the member's behalf. Judee drafted a response to the IRS notice asking for an abatement of the $7,364.07 failure-to-file penalty, as the member had proof of mailing in the return to them. After going over the response with the member, Judee decided it was ready to be mailed. The package went out, and they waited anxiously for the IRS's decision. 

Nearly forty days later, a decision arrived from the IRS. It was good news: they agreed to remove the failure-to-file penalty! Both Judee and the member were thrilled, as over $7,000 was relinquished from the member's amount due!
Posted: 6/15/2017 7:16:08 AM by TaxResources | with 0 comments
Tags: CP14, IRS


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