The penalty can also be reassessed if the IRS finds that any partner was not a qualifying partner, any partner filed late, and if any partner failed to report their share of partnership income on their tax return (Rev. If you can show reasonable cause for failing to file a return or pay any tax when due, we may waive part or all of a penalty. There is no question: getting the help of a tax professional is the most painless way to get your tax issues resolved. You can use these two templates as a guide to help you write a letter depending on your situation. Practitioners who made a good-faith effort to meet filing deadlines on behalf of their clients, but were unable to do so due to COVID-19, should write COVID-19 in an attachment to the return, briefly describing the reason they could not meet the deadlines, or, if possible, should write COVID-19 at the top of the tax return to indicate the need for penalty relief. A client to whom the IRS grants an FTA will receive Letter 3502C or 3503C 30 for individual failure-to-file and failure-to-pay penalty abatement and Letter 168C (or its equivalent) 31 for business failure-to-deposit penalty abatement. We will review your account information to see if you meet the requirements for First Time Abate. Intuit Professional Tax Preparation Software | Intuit Accountants 2. In this case, youshould argue for reasonable cause. The partnership must consist entirely of US resident individuals or the estate of a deceased partner. IRS Failure to File Penalty Abatement for Partnerships Rev Proc 84-35. If you have any questions or need any additional information, you can reach me at [phone number]. Sample IRS Penalty Abatement Letter: Written Petition - TaxCure -J N word/_rels/document.xml.rels ( KO0&F1biKf0N]Cz~.c[@lU*E$l:t6morQ6a b-E_*m@M{Q|*,=Xz]IuUo@`Q}[;*pfWxP8(.O5ma\Ob;axTy KISiex, $:+ *,X6"w0yhd\7^_? If you received a notice or letter saying we didn't grant your request for First Time Abate relief, request a different type of penalty relief or see Penalty Appeal Eligibility for next steps. That number will increase to $220 for returns due after 1/1/23. If a partnership of 10 or fewer partners happens to not be automatically excepted from the penalty imposed the partnership may show other reasonable cause for failure to file a complete or timely partnership return appeal this penalty following your. Examples of Reasonable Cause for late filing or payment can be grouped under four broad categories: Disaster: Fire. Tax Penalty Waiver Letter Sample - SuperMoney