YOu don't have recourse to challenge the VALIDITY of the penalty, or transfer the responsibility to checking to see if return
was file to IRS from you...
That being said, however, you DO have the ability to ask for abatement of the penalty for reasonable cause.
AND by far the "reasonable cause" that carries the most weight is detrimental reliance. (Relying on a tax
professional or something IRS told you that cased the error, or other lack of compliance
, TO YOUR DETRIMENT).
The theme here, is NOT to give up.
I would not do this first, but once you've received a rejection of a request for abatement for reasonable cause and been made aware of intent to collect, lien
or levy ... you can file an appeal.
This typically stops the locomotive, if you will, and gives you time to build a case.
The two main procedures are Collection
Due Process and Collection Appeals Program.
Collection Due Process (CDP) is available if you receive one of the following notices:
• Notice of Federal Tax
Lien Filing and Your Right to a Hearing under IRC 6320
• Final Notice - Notice of Intent to Levy and Notice of Your Right to a Hearing
• Notice of Jeopardy Levy and Right of Appeal
• Notice of Levy on Your State
Tax Refund – Notice of Your Right to a Hearing
• Post Levy Collection Due Process (CDP) Notice
Collection Appeals Program (CAP) is available for the following actions:
• Before or after the IRS files a Notice of Federal Tax Lien
• Before or after the IRS levies or seizes your property
• Termination, or proposed termination, of an installment agreement
• Rejection of an installment agreement
• Modification, or proposed modification, of an installment agreement
BUt first I would ask your attorney (demand) to write a letter asking for abatement BECAUSE he did not make you aware of the need to file ALL, if that's what you paid him to do ... as is normally the case - to do what's needed to bring you into compliance.
YOu should also take a look at this (I have no association, but this guy gets it):