IRS notices

[MN dhawk]

A client gives me two IRS notices at once for the same 2015 missing dividend income. The IRS tax calculation did not take into account that the dividend was qualified. Should I respond to both notices or just the latter one?  Is there any chance of avoiding the substantial tax understatement penalty due to lots of business travel and never having had it before? Any thoughts?

[SaraEA]

You can request a first-time penalty abatement if your client has a clean record of timely tax payments for the past three years.  This is an administrative waiver and is granted automatically if you ask--no excuses needed.  I'd respond to just one notice.  Don't want to confuse the IRS; they're obviously already confused.

[Abby Normal]

18 hours ago, SaraEA said:

past three years

Pretty sure it's two years.

[Jack from Ohio]

1 hour ago, Abby Normal said:

Pretty sure it's two years.

It is three years.

[Possi]

On ‎11‎/‎28‎/‎2017 at 9:30 PM, SaraEA said:

You can request a first-time penalty abatement if your client has a clean record of timely tax payments for the past three years.  This is an administrative waiver and is granted automatically if you ask--no excuses needed.  I'd respond to just one notice.  Don't want to confuse the IRS; they're obviously already confused.

Sara, I missed a 1099 in my client's paperwork. Her penalty alone is over $650 (which is my responsibility, of course). My question is this; when she sends her response with the 843 I'm filling out for first time abatement, should she send the taxes owed WITH OR WITHOUT the penalty payment?