Reasonable cause

[ILLMAS]

I have a new TP that hasn't filed (6+ years), I know he is going to get hit with penalties and interest etc..., how far back can one request penalty abatement for reasonable cause? 

Thanks

MAS

 

[Richcpaman]

All six years.

Get the returns filed.  Then find out where he is.

If he owes enough to get to a Revenue Officer or agent, then you can negotiate with them in person.

And then you ask.

Rich

 

 

 

[Terry D EA]

Just wondering what the reasonable cause is?

[schirallicpa]

According to Policy statement P-5-133, only six years of returns should be filed in a delinquent return situation unless IRS pursues older return (because IRS suspects fraud.)  File 6 most recent years.  If IRS advises more needs to be filed, then file more.  The IRS usually will not pursue more than the six years.

[ILLMAS]

13 hours ago, Terry D said:

Just wondering what the reasonable cause is?

Gulf War Vet