First time abatement for a Corp in 2nd year?

[BulldogTom]

Sorry for the long post....

Taxpayer formed an LLC in 2021.   Came to me in 2022 for their first tax return.   No election was made for how to tax (would have defaulted to a SP).  Filed a late election to be a corporation and filed the 1120 timely for 2021 showing a loss.   In 2023, April 1st or so, they come back to me with a total QBO mess of their books.   I can't get the information from them in time to file by due date.   Tried to file an extension through ATX, but the IRS rejected.   They had not processed the 2553 and so they did not show the LLC as a corp (the 2021 1120 went through efile).   So I send the Taxpayer the 7004 and the the voucher to pay the estimated tax with the extension.   Certified return receipt.   They send a check and the extension form to the IRS on 4/17/2023.   In Sept 2023 we file the 2022 tax return.   In October 2023, the IRS sends the taxpayers a check returning the extension payment.   Taxpayers go online and make the payment the day they receive the check from the IRS.   Every bit of the above is documented via email, receipts, software reject errors, etc.

Today, taxpayer gets a big fat bill from the IRS for failure to file timely, failure to pay penalties, failure to pay estimated taxes penalty and Interest.

I am getting the 2848 right now and will see if I can get a reasonable person on the PPL and get abated for reasonable cause.   

One of the requirements for First Time Abatement is 3 years of no issues.   The return in question was the second one for the company.   Year three just went out a couple weeks ago.   

Can my client get first time abatement in this circumstance?

Tom
Longview, TX

[WITAXLADY]

Good Luck,

We write letters requesting abatement and have had success with the abatement. I have 2 now that ae late 2 years in a row.. unsure what will happen there.

 

And you have lot of facts to back you up.

Good Luck,

D /WI