Video instructions and help with filling out and completing Are Form 843 Dont

Instructions and Help about Are Form 843 Dont

It's not the tax its the penalties and interest that gets you is there anything that can be done about IRS penalties and interest that's the topic of today's video hi my name is Darren minish and I'm a tax attorney with a national tax problem resolution practice based in Tampa Florida over the past 15 years of practice there are certain questions that have been asked again and again so I thought I'd make these videos the answer some of those questions today in this video format there are 20 videos altogether and if you'd like to have access to the other 19 videos please visit our website it can IRS help videos calm now it's not the taxes of penalties and interest that's what gets you if I had a nickel for every client that said hey I would pay the tax but it's the penalties of interest that are killing me I'd be a millionaire so what do you do about the penalties in interest in an IRS problem case well here's the harsh truth interest not available by law unless in certain circumstances where you can you can prove that you relied upon written erroneous advice from the IRS then you can have interest abated is that going to happen not for most people that I speak with we don't have written advice written erroneous advice from the IRS so interest is not going to be available now that I made that big bold claim and I made it seem like that was the case in every case let me explain a little tiny loophole and that is if you can get penalties abated than the interest associated with those penalties can be abated ok so what does a bate mean well a bate means to eliminate or reduce alright so you can have penalties abated for reasonable cause one of the reason will cause me reasonable cause means a darn good reason I know it's pretty simplistic isn't it but really that's what it means it means did was there some particular good reason that you failed to file one time that you failed to pay on time now what are examples of good reasons that you could prevail and penalty abatement well some of those would be a divorce drug addiction physical problems hurricanes other natural disasters earthquakes tornadoes divorce alcoholism drug abuse those types of things that are not reasonably foreseeable what's reasonable reasonably foreseeable mean well my tours professor back Law School would probably featuring over in his grave but what it means is was it reasonable was a reasonably foreseeable that this event would occur now I used to find that that term with with it in its definition so that probably wasn't that clear or is it reasonable that you would have known that this could have happened so our hurricane is reasonably foreseeable well I think they are and happened to live in a coastal area of a coastal state but the IRS tends to think that for hurricanes and hurricane damage are not particularly reasonably foreseeable and therefore that can be reasonable cause I would suggest that in my practice that over the years the people with longer track record of having compliance problems have a lesser ability to get penalty abatement what does that mean well if you have 5 to 10 years where you didn't file and pay on time it's kind of unlikely you're going to get fined a good enough reason that you're gonna get all of those penalties abated it makes sense right but on the other hand if you have a smaller window of time 2 3 4 maybe in 5 years where you can demonstrate that you were undergoing physical problems or someone may be very close to your family your spouse whether your children we're going through certain problems and that caused your you know your head not to be in the game and therefore you didn't file and pay on time you have a chance you can also get partial abatement of penalties what does that mean well it means you know in certain years maybe the early years maybe one year the penalties are evaded and it's certainly something to try now how do you get penalty of bateman well you write a letter to the IRS penalty abatement request must be in writing I suggest that they also be sort of thought to be sent certified mail return receipt requested where do you send them to well you can send up a pretty much any address in the IRS they're going to go ahead and treat them the same they they ignore they tend to ignore penalty abatement requests quite often so that's the reason for the certified mail you need to state with specificity and peculiarities what exactly it is you're asking to be abated and why you think you deserve those penalties to be abated if you're dealing with the revenue officer send it to the revenue officer but make it very clear that that's what you're asking for now I denial what penalty abatement can actually be appealed you appeal a denial penalty abatement using something called a cap appeal and typically if you get a denial that are there ought to be instructions with the letter telling you how to how to appeal that if you send in your penalty of a letter and between 30 and 90 days of elapse and you have a current thing and that would be probably the normal case then you can actually contact the office of the tax payer advocate and file a Form 9 1 1 well that's actually the dealing with the tax payer advocate is going to be the topic of a different video but when you deal with a or when you file a 911 one in this particular instance what you're doing is you're going to complain about the length