TaxmannEA Posted May 5, 2015 Report Share Posted May 5, 2015 Is it just me, or has IRS gotten more aggressive regarding late penalties on 990s? I've had 2 clients who came to me with late filings receive penalties of $1270 and $2790. These people came to me because of problems getting the returns accepted. When we got them filed, they then are hit with the bill. I might just have been lucky, but I've never seen these late penalties charged before. These are both well established charitable organizations. I intend to request abatement, but I'm just wondering if we are seeing the beginnings of a new trend. Quote Link to comment Share on other sites More sharing options...
NECPA in NEBRASKA Posted May 5, 2015 Report Share Posted May 5, 2015 Absolutely ask for abatement. I just got one abated for over $4,000. The IRS is definitely more aggressive with penalties for everything. Explain the circumstances with as much detail as possible. I'm fighting one now on a 941 that had a liability of $2,200 which was paid with the return and they have penalized them for not making monthly deposits. When the taxpayer called they told him that they were required to pay it monthly. I guess they should actually look at a 941 and see the requirements. I have written two letters and have an additional phone call in to them. This should have been an easy fix, but I think that they have people answering the phone now, that aren't well trained. 2 Quote Link to comment Share on other sites More sharing options...
JJStephens Posted May 5, 2015 Report Share Posted May 5, 2015 I agree that more penalties are being assessed but I attribute that to 'improved' ability to catch errors via automation.That said, I've found that if the client had no prior problems and if you approach them nicely (i.e., not adversarially), the IRS is pretty good about abating penalties.In fact, over the past number of years I've never failed to get an abatement for a first time error. 1 Quote Link to comment Share on other sites More sharing options...
Richcpaman Posted May 5, 2015 Report Share Posted May 5, 2015 JJ:You get the "first time" error abatement just by asking.Its the second time. Or the third.And it is not about the automation, its about being aggressive. And they are CERTAINLY being more aggressive. Non-Profits with gross revenues of $10k getting penalties of $1,700 to $2k. Never used to happen. And then, rejected the abatement request.Its gonna get worse. I am updating my engagement letter to state that *I* am not responsible for your extensions and/or penalties.Rich 1 Quote Link to comment Share on other sites More sharing options...
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