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RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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I filed over a year late on my 2005 tax return owing money ...

Customer Question

I filed over a year late on my 2005 tax return owing money and about 3 or 4 months late on my 2006 tax return owing money. I am now being hit for almost 15,000 combined for both year worth of interest and penalities. I am ok paying the interest but the penalities are killing me. Is there anyway at all to get relief from the IRS on the penalities and possible get them waived ?
Submitted: 9 years ago.
Category: Tax
Expert:  RD replied 9 years ago.

Was there a reasonable cause for the delay in filing?


Customer: replied 9 years ago.
Reply to RD's Post: Mulitiple I feel...One all of my tax information including receipts, deductions, bankstatements, and w2 were lost after giving them to a CPA that I have still yet to be able to track down. Two I had a death in the family, lost and income went from 200,000 a year to 25,000. I owed about 20,000 in taxes for 2005 and 15,000 for 2006.
Both tax returns were filed at the beginning of this year and I just recieved a statement from the IRS requesting an additional 15,000 total in interest and penalities. The interest I can pay at only a few thousand its the penalities that are killing me...I just dont have it and after paying them almost 40,000 to catch up for those two years back taxes Im at odds ?
Expert:  RD replied 9 years ago.

You should than try to convince IRS that you had a reasonable cause for the delay. The IRS may in that case waive or at least reduce some of the penalties.


Let me know if you have any question.


Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.