WITAXLADY Posted March 10, 2023 Report Share Posted March 10, 2023 Client used First time abatement penalty back in 2013 for Fed w/holding - EFTPS Got behind during Covid - good reason! So denied abatement - Could someone steer me to another reason to abate penalties? They are recovering but having to pay the penalties is overwhelming and triggers Civil Trust fund. Please any help would be appreciated (son-in-law) Thx D Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 10, 2023 Report Share Posted March 10, 2023 Are we talking about Payroll Trust Fund taxes not being paid/ Quote Link to comment Share on other sites More sharing options...
Max W Posted March 10, 2023 Report Share Posted March 10, 2023 "Got behind during Covid" , may or may not be an acceptable reason. If his business continued to run during covid or there was more than one quarter involved, it would be likely reasons for rejection.. I don't know what 2013 has to do with it. The IRS only looks back 3yrs/12qtrs. Quote Link to comment Share on other sites More sharing options...
Robbie Posted March 10, 2023 Report Share Posted March 10, 2023 First time abatement penalty can be used again after four years. Alternative is reasonable cause for a penalty abatement. However I requested the FTA and includes a reasonable cause abatement request due to illness for a penalty on a 2019 return. Both were denied for no clearly stated reason and I have filed an appeal. Covid shut down has prevented any action other than denials of the request for abatement. So every 90 days or so we get a letter saying they need more time to process the appeal. It's ridiculous. The FTA is statutory and shouldn't be discretionary on the part of the agent, but they can't seem to get that fact through their thick heads. 1 Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 11, 2023 Report Share Posted March 11, 2023 If we are talking about unpaid Payroll Trust Funds (Employee WH and Employee share of SS and Medicare) then you are in a whole different ballgame. 4 hours ago, WITAXLADY said: Please any help would be appreciated (son-in-law) Instructions for Form 843: "An abatement of tax, other than income, estate, or gift tax. Employers cannot use Form 843 to request an abatement of FICA tax, RRTA tax, or income tax withholding." As George H W Bush was fond of saying, "you are in very deep doo doo!" Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted March 17, 2023 Author Report Share Posted March 17, 2023 very deep - but they did stay open! = kept employees, takeout did well and coming out of the deep hole - but the additional $$$'s for penalties make an installment plan not feasible.. Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 17, 2023 Report Share Posted March 17, 2023 Keeping your business open by not paying your Payroll Trust Fund taxes is a really bad idea because the business owners are personally liable and filing Bankruptcy provides no relief. Quote Link to comment Share on other sites More sharing options...
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