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CA FTF Penalty Abatement


jasdlm

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Client came to me in the fall and had self-filed prior to that time.  TP is a schedule C consultant and did some work for a CA client.  TP did not realize a CA return was needed.  Established time spent in CA, and a return was in fact required.  Filed the return, paid the tax, interest, and substantial FTF penalty owed, and requested a reasonable cause penalty abatement.  Received an immediate 'denied' letter.  Any point in appealing?  TP would have done what was right, regardless, and corrected the error immediately once I pointed it out.  I'm sure TP will send all friends/colleagues to me, as i encouraged TP to file the past returns (not sure how CA would have even known) and now, I cannot get the FTF penalty waived.

Anyone with CA experience have a recommendation?  This is the first penalty abatement request I've ever had denied.  I'm staying out of CA!

Thanks much!

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Actually, there have been very aggressive for years. Back in the late 70's, I was an Accounting Supervisor for a Oregon Wood Products Company with 3 mills in California.

They would send 2 tax auditors to our headquarters in Oregon, every year, who would spend a full week  going thru everything, making sure that we had documentation

for everything.

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