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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29778
Experience:  Taxes, Immigration, Labor Relations
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I have some years of business taxes that I filled late but

Customer Question

I have some years of business taxes that I filled late but did not
owe any taxes on these years but the failure to file penalties added
up to real money. I am filling out the 843 form to request and abatement.
I was told by my former accountant at the time that filing late would not be a problem since I did not owe anything and have less than 10 partners.
Any suggestions on the best way to fill out the form/
Submitted: 2 years ago.
Category: Tax
Expert:  Lev replied 2 years ago.
Hi and welcome to our site!First of all - when there is no tax liability - there is no penalties for personal income tax returns for filing late.As you are likely filing partnership tax returns - when the tax return is required - penalties might be severe - and are also based on the number or partners.
Expert:  Lev replied 2 years ago.
See page 5 in instructions such failure is due to reasonable cause. The penalty is $195 for each month or part of a month (for a maximum of 12 months) the failure continues, multiplied by the total number of persons who were partners in the partnership during any part of the partnership's tax year for which the return is due. If the partnership receives a notice about a penalty after it files the return, the partnership may send the IRS an explanation and the Service will determine if the explanation meets reasonable-cause criteria.
Expert:  Lev replied 2 years ago.
When form 843 is filed to request an abatement of penalties - you would need to provide a reasonable cause.
to request the "accuracy related penalty" be abate based on reasonable cause. If you provide the reason like "I forgot" - I do not think it will be considered as reasonable - so be careful when prepare an abatement request.
The best woudl be to use a local CPA who will evaluate your situation and help with preparation of the abatement request.
Here are some common examples that the IRS provides for considering individuals for penalty abatement.
•Death of the family member
•Unexpected absence (in prison, hospital, etc)
•Casualy event (fire, flood, etc)
•Unforeseen curcumstances (divorce, etc)
•Incorrect advice from a tax professional
•Incorrect advice from the IRS
•An accuratecy related error when acting with "ordinary business care and prudence"
•Other (reasons are not limited by teh above list)
Specific regulations and wording regarding Reasonable Cause - see IRM (Internal Revenue Manual) (11-25-2011)
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