Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I have received a fine of $60,000 filing of 5472. inquiry /

Customer Question
i have received a fine...
i have received a fine of $60,000 for late filing of 5472.
inquiry / appeal on mums medical grounds rejected as"information submitted doesn't establish reasonable cause or show due diligence"
although have filed late in the past (and paid associated fines / penalties) have never been this scale. Am being charged $10k for 3 forms for 2 people
what are the chances of winning an appeal. My CPA has aadviced me to use a tax attorney and i am worried about throwing more good money
Submitted: 2 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 31 minutes by:
3/2/2016
Tax Professional: Stephen G., Sr Income Tax Expert replied 2 years ago
Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7,439
Experience: Extensive Experience with Tax, Financial & Estate Issues
Verified

Well, it may be too soon to use a tax attorney. How extensive an explanation did you provide? In the letter that denied your request for abatement, did the IRS provide the address of the "Penalty Appeals Coordinator" where you could appeal the denial of your abatement request? This is an extra administrative step that basically gives you a "second chance" to provide a professional appeal before you actually have to go through the formal appeals process. At this point, you are still asking for relief for either "reasonable cause" or requesting relief under the "first time abatement" procedures.

If you have to go through the formal IRS Appellate Division, then an attorney may be advisable if there are any specific laws or regulations involved that may be interpreted in your favor.

A couple of questions:

1. What type of entity is being penalized?

2. Did you have any professional assistance when the 5472 was supposed to be filed?

3. Did your (or any) CPA prepare the initial abatement request or did you do it yourself?

If you've been given the option of appealing the denial of the abatement request to the "Penalty Appeals Coordinator", then there's a reasonable chance of success of establishing reasonable cause; clearly worth the attempt as the cost isn't usually prohibitive given the alternative of the $60,000. assessment. The worse case could be lowering the assessment to $10,000., still unacceptable given the nature of the violation. Also, the timing is important of when this problem arose as the rules were changing in terms of when & how the 5472 was to be submitted, possibly another reasonable cause of non-compliance.

So, if you can answer those questions and provide any additional details of what the facts and circumstances were, I can either give you additional thoughts on how to proceed or possible give you a proposal to provide a draft abatement request that you can submit over your own signature.

Also, please identify your position with the taxpayer who was assessed; ie. are you a partner, officer, owner, member of an LLC or what?

Ask Your Own Tax Question
Tax Professional: Stephen G., Sr Income Tax Expert replied 2 years ago

It looks like you have two questions open on the same topic?

Please pick one for us to continue.

Steve G.

Ask Your Own Tax Question
Tax Professional: Stephen G., Sr Income Tax Expert replied 2 years ago

Just checking in. I see you have had a chance to read my response to your question.

Do you have any follow-up questions?

If not, please remember to rate my response as that is the only way we receive credit for our work.

Thanks very much,

Steve G.

Ask Your Own Tax Question
Was this answer helpful?
Ask Stephen G. Your Own Question
Stephen G.
Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7,439
7,439 Satisfied Customers
Experience: Extensive Experience with Tax, Financial & Estate Issues

Stephen G. is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,495 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,272 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
IRS Tax Question: LLC is formed in wife's name, but it is
IRS Tax Question: LLC is formed in wife's name, but it is the husband's business and he does the work. Right now it's single member. Should it be changed to his name? What happens if it converts to an… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
R&D Credit Can you send me the rules for what credit an
R&D Credit Can you send me the rules for what credit an S-corporation can take for R&D? Including what qualifies as R&D? Thanks, JW… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,027 satisfied customers
Our tax preparer filed an extension for the first time for
Our tax preparer filed an extension for the first time for us (seems he is behind); can we go to another preparer to file our taxes once an extension is filed? … read more
Brian Michels
Brian Michels
Partner, CPA
Bachelors of Business Administration
199 satisfied customers
I need to file a tax form. Its a new LLC with no income, no
I need to file a tax form. Its a new LLC with no income, no business was generated. Is someone avaiable to help me with this now?… read more
Shan-Nel Simmons
Shan-Nel Simmons
Tax Professional/Owner
Master\u0027s Degree
43 satisfied customers
I have question if LLC needs to file form 8804/8805 if the
I have question if LLC needs to file form 8804/8805 if the gross income is zero … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,129 satisfied customers
I have an IRS tax law question regarding forms need to file
I have an IRS tax law question regarding forms need to file an extension on filing a form 1041. Need a tax professional from California to respond. … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,129 satisfied customers
I am a tax preparer and am filing my first tax return using
I am a tax preparer and am filing my first tax return using an ITIN. How do I do this and are there any pitfalls I need to be alert for. I am filing for 3 years.… read more
Carter McBride
Carter McBride
LLM
1,077 satisfied customers
I prepared my brother-in-law's taxes last year. He sold a
Hello, I prepared my brother-in-law's taxes last year. He sold a piece of property and not having dealt with something like that before, I put it down as other income. I am told that it is to be enter… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I am preparing the K-1 for my LLC, and I used online tax
I am preparing the K-1 for my LLC, and I used online tax software (TaxAct.com). I feel fairly comfortable with the process, but my partner's K-1 is showing two numbers in box 14 (Self-Employment Earni… read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
837 satisfied customers
I am preparing the tax return for an LLC that holds rental
I am preparing the tax return for an LLC that holds rental property. We purchased most of the rental homes last year and required a good amount of repair work before they could be rented. How do I cal… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Taxes. In regards to the new tax laws. The child credit.
Taxes.In regards ***** ***** new tax laws.The child credit. Please explain. I have 4 kids. Is it a deduction or a credit. And is there a limit and I believe I read It's 2k per kid. Do you simply get c… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
When I filed my 2016 tax return, the tax preparer used a
When I filed my 2016 tax return, the tax preparer used a form 4797 because in 2015 I sold a rental property. This was the only property I owned. I am retired & my annual income is a little over $20,00… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
I'm preparing to file my NYS tax forms. I purchased
I'm preparing to file my NYS tax forms. I purchased Invisalign dental aligners for over $1000 in 2017. I was charged a single amount. Do I owe sales and use tax? … read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I am a majority member in an LLC. The LLC paid my medical
Hi,I am a majority member in an LLC. The LLC paid my medical expenses. I understand that the medical payment will be listed as part as my K1 guaranteed payments and I will be able to claim the above t… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I am using the TT Home&Business. Filing form 568 LLC
hi...I am using the TT Home&Business. Filing form 568 LLC regarded as disregarded entity. The TT software fill out the form 568 worksheet as owing the $800 fee (again), even though this is THE FINAL f… read more
taxmanrog
taxmanrog
Master\u0027s Degree
941 satisfied customers
What is the substative regulation pursuant to assessment of
what is the substative regulation pursuant to assessment of income tax, published in the Federal register, according to 26 usc 6323 (1.6323) … read more
Carter McBride
Carter McBride
LLM
1,077 satisfied customers
I am preparing a form 8802 for an LLC that will be filing as
Good morning. I am preparing a form 8802 for an LLC that will be filing as a Partnership on Form 1065. For 2016 this entity was a Single Member LLC and two Partners were admitted October 1, 2017. … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,129 satisfied customers
What is the ruling to use for a LLC not want to file a late
what is the ruling to use for a LLC not want to file a late S election for 2016. the LLC does not file an extension for the S corp.… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x