Cancelling IRS Penalty and Interest Assessments
EVENT DATE:
PRESENTER(s): Daniel J. Pilla
This program has been approved IRS CPE Credit 2(Taxes)
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
Credits and Other information:
- Recommended CPE credit – 2.0
- Recommended field of study – Taxes
- Session Prerequisites and preparation: None
- Session learning level: Basic
- Location: Virtual/Online
- Delivery method: Group Internet Based
- IRS Course ID: PJGWS-T-00073-23-O
- Attendance Requirement: Yes
- Session Duration: 2 Hours
- Case Studies and Live Q&A session with speaker
- PowerPoint presentation for reference
Who Will Benefit:
- CPA
- Enrolled Agents (EAs)
- Tax Professionals
- Attorneys
- Other Tax Preparers
- Finance professionals
- Financial planners
