Seven tips in writing IRS for forgiveness of penalties

AS our tax laws become more complex, we find it more difficult to comply. The COVID-19 pandemic makes compliance even more challenging. As we fail to comply in filing or paying required taxes, the IRS hits us with certain penalties.

The source of these penalties is the Internal Revenue Code which imposes various civil penalties when requirements of tax laws are disobeyed without reasonable cause or as the result of negligence, intentional disregard, willful disobedience or fraudulent intent.

Here are tips to guide you in writing the IRS to forgive your penalties.

• First, understand that you are writing a formal request.
• Use standard business format. Address the agent as Dear Mr Smith, not Dear John.
• Address all tax issues raised in your audit notice.
• Refer to specifics, not generalities.
• Present your information in a straightforward and clear manner.
• Provide documents listed in IDR (Information Document Request).
• Respond quickly. Break old procrastination habits. Don’t wait for deadlines.
Good luck.

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Victor Santos Sy graduated Cum Laude from UE with a BBA and from Indiana State University with an MBA. Vic worked with SyCip, Gorres, Velayo (SGV – Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation in Pasadena, California.

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He has 50 years of experience in defending taxpayers audited by the IRS, FTB, EDD, BOE and other governmental agencies. He is publishing a book on his expertise – “HOW TO AVOID OR SURVIVE IRS AUDITS.” Our readers may inquire about the book or email tax questions at vicsy@live.com.

Victor Sy, CPA, MBA
Victor Sy, CPA, MBA

Victor Santos Sy graduated Cum Laude from UE with a BBA and from Indiana State University with an MBA. Vic worked with SyCip, Gorres, Velayo (SGV - Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation. He retired after 50 years of defending taxpayers audited by the IRS, EDD, BOE and other governmental agencies. He published a book on “How to Avoid or Survive IRS Audits.” Readers may email tax questions to vicsy@live.com.

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