Discussion:Penalty and Interest Abatement

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Discussion Forum Index --> Tax Questions --> Penalty and Interest Abatement

TheTinCook (talk|edits) said:

5 June 2008
Even though interest is almost never abated, does it make sense to request interest abatement anyway when you're already requesting penalty abatement?

DLLCPA (talk|edits) said:

5 June 2008
I'd be a little concerned about an IRS Agent having a bad day (we all do) and saying no to both penalty and interest. Unless there is a good reason for interest relief why give them soemthing else to say no to?

I'm curious what everyone else thinks.

Fsteincpa (talk|edits) said:

5 June 2008
Just sent in an abatement request today asking to eliminate penalties and to then send us a bill for the interest owed on the changed amount.

I agree with DLL. Wouldn't want to piss off an agent.

Irsfixer (talk|edits) said:

5 June 2008
I take issue with the concept of "pissing off" an IRS employee by exercising a taxpayer's rights. That said, I would not request an abatement of interest unless there is a reason for abatement independent of the reason for abatement of the penalty or a reason compelling enough for abatement of both. Of course, interest will not be abated but "pissing off" an IRS employee is no reason for not asking.

Death&Taxes (talk|edits) said:

5 June 2008
Sec. 6404(e) gives the justification for abatement, so if you do not fit into this section, don't waste the fingers typing, but do make sure that interest is recalculated if tax or penalty is reduced.

Fsteincpa (talk|edits) said:

5 June 2008
Well, naturally fixer, he who is, or was employed by the infernal revenue service would take umbrage to the way we tend to view those pillars of our tax system.

I know, that never would a tax employee think to take out his/her bad day on some unsuspecting tax citizen. lol. They would never use their authority to look through the personal tax records of the rich and famous. they would never look at their neighbors tax returns or anything else or use their authority for any other than proper and upstanding purposes. ROFLMAO.

Sorry fixer, I know you have high regards for them and to a degree, I do too, but you do have some loose cannons in the mix and yeah, sometimes one of ya's can get a big ol bug up yer arse.

Irsfixer (talk|edits) said:

5 June 2008
I have never worked for the IRS - always against them. But they are no more or less likely to get PO'ed by an abatement request than a judge who hears an innocent plea. It is what happens every day - day in and day out. Besides, it has been my experience that the more irrational the reason for a denial of an abatement is, the easier the appeal.

Fsteincpa (talk|edits) said:

5 June 2008
And are you saying that you never dealt with one who had an "attitude"? Yes, I know when we are right it shouldn't matter, but some cop one anyhow. It's easier not to piss them off.

And remember, I am talking about a small minority giving the group a bad name. It's like those dang lawyers. no one really likes them, bunch of dang ambulance chasers. Right next to used car dealers. Right Crow? lol

Irsfixer (talk|edits) said:

5 June 2008
The vast majority of abatement request are handled via mail so you don't really know what the attitude of the person is. I tend to use humor and other inclusive techniques when making requests to avoid harsh reception of the request by the reader. I just don't think you can be concerned about "a small minority" when exercising your client's rights. Either you have reasonable cause or you don't. If you think you have it, or at least a colorable arguement - you make it.

Mscash (talk|edits) said:

5 June 2008
Unless IRS has screwed up somewhere along the line you are spitting into the wind by asking that interest be abated. Interest can only be abated if IRS fails in carrying out a ministerial duty. This is something that DOES NOT require the exercise of judgment. If IRS fails to do something routine where the employee does not have to think, abating interest could come in. The taxpayer will never have reasonable cause to justify abatement of interest similar to reasonable cause to justify abatement of penalties. If interest has been charged on an assessed penalty and the penalty is abated, interest will automatically be adjusted without asking.

Fsteincpa (talk|edits) said:

6 June 2008
In correspondence there, I always just state the facts and don't add anything unnecessary. I don't try to be familiar or anything. on the phone and something from a personal standpoint, I always get friendly and personal. Get more with honey then with vinegar or whatever that saying is. If she sounds cute, I even see if I can't get a date or what not. but then again i do that with telemarketers. lol

Natalie (talk|edits) said:

June 6, 2008
Fred, you should not advertise that you try to get dates with telemarketers! They will certainly pick up on that, and then you'll be swamped with calls.

Well, on second thought, the more choices you have, the better.

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