All right, that's the IRS train wreck of the week. This is a great story, guys, and it's a little bit different than the other train wrecks that I've been talking about lately. This particular gentleman, whom I had represented over the years, had a very large payroll tax problem which I helped him resolve. However, that's not what we're talking about here. He had a very good year, earning about five or six hundred thousand dollars. He paid a couple hundred thousand dollars in taxes and there were about sixty thousand dollars in penalties associated with his account. Despite this, he had a nice car. One day, he called me and asked if there was anything that I could do about it. There are a couple ways to abate penalties, meaning to eliminate them. One of the cool things is called "first time penalty abatement," which is almost automatic. Here's how it works: if you haven't paid any substantial penalties in the prior three years, you pretty much get a freebie. He explained the situation to me, and I thought that he had been a pretty compliant taxpayer over the years, except for the payroll issue. I told him I thought I could do something for him. I did the research and checked the prior three years. There was no penalty. So, I contacted the IRS and asked them to eliminate the penalties. Surprisingly, they didn't even put up a fight. The penalties amounted to sixty thousand one hundred and ninety-seven dollars. That day, I had one very happy client who got over sixty grand written off.
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Video instructions and help with filling out and completing Form 843 Abate
