IRS penalties and interests increase the bill every day if your taxes are outstanding after the filing deadline. Taxpayers are liable for the additional penalties and interests on the entire outstanding amount even if they have qualified for a tax debt payment plan and have started to make payments. These penalties can add as much as an additional 25% to a taxpayer’s IRS bill. Also, the federal agency charges an additional penalty of 5 per cent on taxes that have not been filed.
Penalty abatement is a technique that tax practitioners can utilize to help their clients reduce their tax debt or even entirely cancel penalties and interests they owe to the IRS. The trick is to convince the IRS that your client was unable to pay the taxes due to what the IRS tags a “reasonable cause.”
If a practitioner or taxpayer can justify that reasonable cause led to delay in tax payment, there are good chances that the IRS may forgive a portion or the entire penalty charged on your tax debt. Remember that IRS is softer on failure to pay penalties than failure to file penalties. The purpose of penalties and interests are to encourage and motivate taxpayers to pay their taxes on time and it must be considered as such.
Participants will understand:
Abatement of interest
Avoiding the understatement of tax penalty
Various types of penalties:
Accuracy related
Fraud
Understatement of valuation
Reporting requirement
Failure to pay
Pay or deposit penalties
Rules on waiver of penalties and interests
Various forms and procedures for requesting relief
First Time Abatement: Requirements and procedures
How an individual taxpayer qualifies for Reasonable Cause abatement
Procedures for requesting refund of paid penalties
Available administrative options
Learning Objectives
Understand situations where penalties can be imposed.
Utilize techniques for preventing or reducing any penalty assessments.
Ascertain when the First Time Abatement can be used.
Obtain a working knowledge of the procedure governing the request for refund.
Credits and Other information:
Recommended CPE credit – 1.5
Recommended field of study – Taxes
Session Prerequisites and preparation: None
Session learning level: Basic
Location: Virtual/Online
Delivery method: Group Internet Based
Attendance Requirement: Yes
Session Duration: 1.5 Hours
Who Will Benefit:
CPA
Enrolled Agents (EAs)
Tax Professionals
Attorneys
Other Tax Preparers
Finance professionals
Financial planners
About Our Speaker
Nick Preusch CPA, JD, LLM
Nick Preusch CPA, JD, LLM, is a tax manager with PBMares, LLP. Nick has participated in helping high wealth individual and large business entities with complex tax compliance, along with specializing in international, non-for-profit tax issues, and tax ethics issues. Nick has also worked with the Internal Revenue Service as a Revenue Agent and an Attorney with the IRS Office of Professional Responsibility. Nick is a graduate of Carthage College with a BS in Accounting and Business, University of Connecticut with a MA in Accounting, Case Western Reserve University with a JD, and Georgetown University with an LLM in taxation. Nick specializes in IRS/State Collections Cases, settlements with the IRS, Tax Lien Releases and Corporate Officer Assessments.
