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Marvin,EA, Enrolled Agent
Category: Tax
Satisfied Customers: 1672
Experience:  Enrolled to Represent Taxpayers Before The IRS
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I want to file a form 843 for abatement of interest for 1997,

Customer Question

I want to file a form 843 for abatement of interest for 1997, 1998 & 1999 which the irs is still determining the amount of the penalty I owe. I paid all tax owed in Dec 2006. any help filling out form?
Submitted: 8 years ago.
Category: Tax
Expert:  Marvin,EA replied 8 years ago.
Hello and thank you for using Just Answer. What was the penalties for (Failure to file return, Failure to pay tax, Accuracy-related penalty)?
Customer: replied 8 years ago.

The case was one count of failure to provide information in connection with a federal tax returm 26USC 7203.

The Penalty code fraud - IRC 663 was used by the civil IRS agent

I was trying to get it changed to accuracy 20% but that is just one of the items currently being reviewed.

Expert:  Marvin,EA replied 8 years ago.
Did the IRS agent assess fraud penalties for the same items on tax returns 1997, 1998, 1999? What was the items reported on the tax returns that the IRS assess fraud penalties?
Customer: replied 8 years ago.
Only on 1999 Unreported Income
Expert:  Marvin,EA replied 8 years ago.
If you had a reasonable cause for not reporting the income you might have the fraud penalty refunded. If you had a reasonable cause for the treatment of the item and acted in good faith. You can write some of these statement on your Form 843. "I did not know the income was taxable. This is the first time I omitted unreported income on my tax return. I have been in compliance with reporting all taxable income since 1999". You might be able to get one year of penalty abated but unless you have very good reasons why the penalties should be abated the IRS will not abated penalties.
Customer: replied 8 years ago.

As originally stated I want to abate the continuing interest for an unreasonable amount of time. The penalty I am working on but the form it to filed after the penalty is determined. I wanted help with abating the interest. 1997 to 2008 when the tax was paid the day it was determined in court dec 2006 seems unfair.

Expert:  Marvin,EA replied 8 years ago.

The IRS is authorized to abate interest only in limited circumstances, including:

Interest attributable to deficiency or delay in payment caused in whole or in part by an unresonable error or delay of IRS personnel in performing ministerial or managerial act [IRC 6404(e)(1)]

Interest during the extended period for filing and paying tax in a presidentially declared disaster area [IRC 6404(i)

Interest on erroneous refunds until the date the IRS demands repayment (provided the error was not caused by the taxpayer and the refund is $50,000 or less) [IRC 6404(e)(2)[



Customer: replied 8 years ago.
The delay was dur to the IRS putting my case to the side for four year because of 9/11 and I have the approval of the agent to use her name. I just wanted some ideas as to the best way to fill out the form so that they will look at it. The two year delay after I have paid the tax should be addressed as well but I am not sure how I could do that.
Expert:  Marvin,EA replied 8 years ago.
When you file the Form 843 ( in block 5a you will check the first block. On line 7 you will write the reasons the interest should be abate. Give the name of the IRS agent and his employee number. This agent put your case to the side for four year because of 9/11. That you could not contact the IRS agent during that time. That you paying the interest has cause a significant costs and hardship to you.

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