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Ask Jonathan Tierney Your Own Question
Jonathan Tierney
Jonathan Tierney, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 307
Experience:  Tax Accountant at Praxair, Inc.
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Travin Tax year 2013 individual return with spouse like to

Customer Question

Samuel Travin Tax year 2013 individual return with spouse like to try and receive interest and penalty reduced
Submitted: 1 year ago.
Category: Tax
Expert:  Jonathan Tierney replied 1 year ago.

What are the penalties that are being assessed?

Customer: replied 1 year ago.
Failure to file 10,246.00
Failure to File and Pay Proper estimated tax 297.00
Failure to pay Penalty 3,978.32 All FederalInterest 2,327.58 New York State 9.131.00 combined
Customer: replied 1 year ago.
interest is Fedeal
Customer: replied 1 year ago.
Interest is on Federal return
Customer: replied 1 year ago.
Are you still there
Expert:  Jonathan Tierney replied 1 year ago.

The first time penalty abatement (FTA) is the easiest way to get penalties waived. He may qualify if he has filed his 2014 return or if its still on extension and he does not have any prior year returns that are not filed. In addition, he would also need to have paid, or arranged to pay through an installment agreement or other method, all prior year taxes. You can learn about FTA here http://goo.gl/vlnFAh and here: http://goo.gl/3TTl1i.

Do you know if he owes any other prior back taxes, has any outstanding unfiled returns, or had any other serious problem with the IRS in the past three years?

Customer: replied 1 year ago.
He does not owe any prior back taxes - No serious problem with the IRS in the past three years -
He is on an extension with the IRS and NY State. He has already set up an installment agreement with NY State but not
the IRS NY State is pressing him now so maybe we should concentrate but IRS should be dealt with
Customer: replied 1 year ago.
No problem with NY State
Expert:  Jonathan Tierney replied 1 year ago.

You can visit the IRS site at http://goo.gl/X5F1BL to get the Form 9465 and Form 933-F. If you owes less than $50,000 he can apply online on the IRS site. Once you have an installment plan set up, you can then ask for the FTA. One other question, why was he late in filing his tax returns? Penalties can be waived for reasonable cause though getting that type of waiver is hard to get. Examples of reasonable cause would be if someone was institutionalized when the return was due, their records were destroyed by fire other natural disaster, or that they relied on a tax preparer to ensure that their tax obligations were met.

Customer: replied 1 year ago.
relied on tax preparer to ensure obligations were met
Expert:  Jonathan Tierney replied 1 year ago.

Here is a sample abatement request letter: https://goo.gl/DgMldK. You can request the the penalty under reasonable cause right way, and when he has an installment agreement set up, request the FTA waiver if the reasonable cause waiver is unsuccessful.

Expert:  Jonathan Tierney replied 1 year ago.

As an additional service, I could write the letter for you if you wish. I would want to talk to you on the phone beforehand to get a solid understanding of what went wrong. I could provide you with just a Microsoft Word file that you can fill in his Social Security number and other personal information, or you could provide this that information and a copy of his notices and I will put that in.

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