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Video instructions and help with filling out and completing Form 843 Abate

Instructions and Help about Form 843 Abate

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.