we were benifisers of a large sum of money thru a treast and were told by the manigers of the treast that the taxes would be paid before we received ours mopney. This was in 2007. We just got notified that we need to pay now, therefore we assume it was not paid as we were adivised. We are willing to pay what we owe, but we don't think it is fair to have to pay pentaly, since we were not aware of the payment needed. Sorry for the spelling erres.
Hello jazmine, Can you tell me what the total value was of the trust? Were any of the assets in the trust held inside of an IRA account or other tax deferred type account?
As far as I know no assets were put into an IRS account. My question is there anyway no to have to pay the pentalty.
Hello again jazmine, Sometimes the IRS will allow a waiver on all or part of the penalty that was applied to a tax bill, depending on whether or not you have reasonable cause. You would need to write a letter to the IRS office which is handling your account to request abatement of the penalties and give your reasons for why the taxes were not initially paid when they were due. The IRS will assign an examiner to review your case. The examiner will take in to consideration your reasons for not paying the tax when it was due, and he may also look at your record of tax compliance in prior years to see if you had any previous issues with the IRS. Depending on their findings, they may then waive all or part of the penalties that have been assessed. Each case is decided on an individual basis, so there is no way to tell you for certain what their decision would be, but this is the process you need to follow to request a waiver on the penalties. If this was helpful please press the Accept button. Positive feedback is also appreciated. Thank you jazmine, and let me know if you have more questions. Merlo40034.7876741551
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad