Click Printer to Print 
Abatement of Int or Pen - Plain English
|
Client Letter - What this idea is about
|
Engagement Letter
|
Learning Objectives
|
What it does; Why It
Works - Plain English Analysis |
What It does; Why It
Works - Technical Analysis & Citations
|
Tax Killers: ABT, Activity
Based Taxplanning
|
|
Cost Killers: ABC, Activity
Based Cost & Profit Planning
|
What to
Gather/Organizer Entrance & Exit Interview
|
Assistance, What To Do,
Forms - checklists, time-line to do, etc.
|
Spreadsheets &
Computations
|
Contracts, Trusts, etc.
|
Reports Required
|
|
Checklists for
Deployment
|
Checklist for
Monitoring
|
Financial Accounting:
Bookkeeping & Financials
|
Compliance -
checklist, what is
required for protection, defense, etc.
|
Alerts & Dangers -
Action Checklist, Risks, Asset Protection, IRS Defense, etc.
|
|
(Note: Whenever you see a
sphere or a 
, try a left click. There
are many spheres or
that allow you to collapse or enlarge
the topic's outline)
Client
Letter - What this idea is about
Description/Scope
| Skill
Level
|
Time
Estimate
|
Materials
|
Equipment-Tools
|
Library
Resources
|
Pre-requisite
Knowledge
|
| |
|
|
|
|
|
| |
|
|
|
|
|
Purpose
Purpose
Who This Applies to
Who
When to Perform
When
Special Circumstances
Warnings & Special Circumstances
Why This Is Important
Usefulness
General Benefits 7 Objectives
Text
TOP
This entire site is for educational or informational purposes only.
You are not to use the forms, concepts, strategies, or knowledge without assistance from a
professional. The author, the corporation, the ISP, Bob Parrish CPA, Bob
Parrish CPA, P.C. or other parties related to those or this site do not guarantee or
warrantee in any manner the suitability, usefulness, accuracy, timeliness, or results of
any portions of this site, nor the links contained in this site which link to other areas.
At times, information is taken from other sources and is believed to be accurate,
but no verification or confirmation is performed. Furthermore, if any federal or
state law invalidates a portion of this disclaimer, the other portions still apply.
In addition, any allegations or actions are restricted to arbitration only and must be
arbitrated by the Better Business Bureau in Sarasota Florida. Reading of these pages
constitutes complete acceptance and agreement with all disclaimer provisions on all pages
of this site. .......
Tuesday, November 02, 2004 12:51 PM
TOP
TOP
TOP
What it does, Why it works - Plain English Analysis
Abatement of Interest Due to Error or Delay by the
IRS
The IRS may abate (reduce) the amount of interest
you owe if the interest is due to an unreasonable error or delay by an IRS
officer or employee performing a ministerial or managerial act (discussed
later). Only the amount of interest on income, estate, gift,
generation-skipping, and certain excise taxes can be reduced.
Note. Interest due to an error or delay in
performing a managerial act can be reduced only if it accrued with respect to a
deficiency or payment for a tax year beginning after July 30, 1996.
The amount of interest will not be reduced if you
or anyone related to you contributed significantly to the error or delay. Also,
the interest will be reduced only if the error or delay happened after the IRS
contacted you in writing about the deficiency or payment on which the interest
is based. An audit notification letter is such a contact.
The IRS cannot reduce the amount of interest due to
a general administrative decision, such as a decision on how to organize the
processing of tax returns.
Ministerial act. This is a procedural or
mechanical act, not involving the exercise of judgment or discretion, during the
processing of a case after all prerequisites (for example, conferences and
review by supervisors) have taken place. A decision concerning the proper
application of federal tax law (or other federal or state law) is not a
ministerial act.
Example 1. You move from one state to another
before the IRS selects your tax return for examination. A letter stating that
your return has been selected is sent to your old address and then forwarded to
your new address. When you get the letter, you respond with a request that the
examination be transferred to the district office closest to your new address.
The examination group manager approves your request. After your request has been
approved, the transfer is a ministerial act. The IRS can reduce the interest
because of any unreasonable delay in transferring the case.
Example 2. An examination of your return reveals
tax due for which a notice of deficiency (90-day letter) will be issued. After
you and the IRS discuss the issues, the notice is prepared and reviewed. After
the review process, issuing the notice of deficiency is a ministerial act. If
there is an unreasonable delay in sending the notice of deficiency to you, the
IRS can reduce the interest resulting from the delay.
Managerial act. This is an administrative act
during the processing of a case that involves the loss of records or the
exercise of judgment or discretion concerning the management of personnel. A
decision concerning the proper application of federal tax law (or other federal
or state law) is not a managerial act.
Example. A revenue agent is examining your tax
return. During the middle of the examination, the agent is sent to an extended
training course. The agent's supervisor decides not to reassign your case, so
the work is unreasonably delayed until the agent returns. Interest from the
unreasonable delay can be abated since both the decision to send the agent to
the training class and not to reassign the case are managerial acts.
How to request abatement of interest. You request
an abatement (reduction) of interest on Form 843, Claim for Refund and Request
for Abatement. You should file the claim with the IRS service center where you
filed the tax return that was affected by the error or delay. If you do not
remember the service center where you filed that tax return, send your claim to
the service center where you filed your last tax return.
If you have already paid the interest and you would
like a credit or refund of interest paid, you must file Form 843 within 3 years
from the date you filed your original return or 2 years from the date you paid
the interest, whichever is later. If you have not paid any of the interest,
these time limitations for filing Form 843 do not apply.
Generally, you should file a separate Form 843 for
each tax period and each type of tax. However, complete only one Form 843 if the
interest is from an IRS error or delay that affected your tax for more than one
tax period or for more than one type of tax (for example, where two or more tax
years were being examined). You do not have to figure the dollar amounts of
interest that you want lowered.
If your request for abatement of interest is
denied, you can appeal the decision to the IRS Appeals Office.
Failure to abate interest may be reviewable by Tax
Court. The Tax Court can review the IRS' refusal to abate (reduce) interest
when all of the following requirements are met.
1) You have filed a request for abatement of
interest (Form 843) with the IRS.
2) The IRS has not denied your request for
abatement before July 31, 1996.
3) The IRS has mailed you a notice of final
determination or a notice of disallowance.
4) You have filed a petition for
review of failure to abate interest under Code section 6404 with the Tax Court
within 180 days of the mailing of the notice of final determination or the
notice of disallowance.
You must also meet the following requirements.
1) For individual and estate taxpayers - your net worth must not exceed $2
million as of the filing date of your petition for review. For this purpose,
individuals filing a joint return shall be treated as separate individuals.
2) For charities and certain cooperatives - you must not have more than 500
employees as of the filing date of your petition for review.
3) For all
other taxpayers - your net worth must not exceed $7 million, and you must not
have more than 500 employees as of the filing date of your petition for
review.
Thank you,
Bob Parrish
TOP
What It does, Why
it works - Technical Analysis & Citations
Law (commentary and citation)
Regs (commentary and citation)
Cases (commentary and citation)
§§§ Law §§§
§274(d)
§§§ Regs §§§
§§§ Cases §§§
TOP
Tax
Killers
This is about Activity Based Taxplanning - maximizing deductions,
minimizing cash outlay and maximizing the amount of cash retained and the net worth.
Tax is a subject that many view in order to cut costs. Taxes are a
cost just as any other cost. It happens this cost is somewhat intangible and is
defined by legislation without a tangible item to view and control. The money is
spent and the control of the expenditure is more appropriately administered by someone
trained in the law.
TOP
This is about Activity Based Costing - methods to cut costs,
management accounting, management information systems, decision support systems - in
general about being a manager.
TOP
What to gather - preparing for your CPA, your attorney, or preparing to start
the job on your own
Entrance Interview
Exit Interview
What to do:
TOP
Assistance - What
To Do - Forms - checklists, time-line to do, etc.
TOP
TOP
TOP
TOP
TOP
TOP
Financial Accounting: Bookkeeping & Financials
Financial
Statement Presentation
Notes
to Financial Statements
How to
Make Entries
What
Kind of Records to Keep
Bookkeeping
Methods - Cash, Accrual and Other
How the
Business Entity Affects the Recording
Sole Proprietor
Corporation - C & S
Partnerships - General, Limited, Limited Liability Company, Registered
Limited Liability Partnership or Company
Trusts
Tax Exempt
TOP
Compliance - what is required for protection, defense, etc.
Compliance Checklist
TOP
Alerts
& Dangers - Risks, Asset Protection, IRS Defense
Action Checklist
Alerts
& Dangers - Risks
Asset
Protection
Your
Defense
TOP
tp_advocacy_abate_plaineng.htm
