client received IRS letter

[WITAXLADY]

had him bring it in - it was for a $6.00 owed and $350 interest and $350 penalty for non-payment from 2012!

How do you ask for that to be abated? I did not do his taxes then so I have no clue what his taxes looked like - from the last 3 years - he does gravel work so files late after summer when he has money and pays then so I cannot ask saying paid timely?

D

 

[FDNY]

Maybe a first time abatement?  Since he does gravel and files late he could grovel for forgiveness.

[Lion EA]

Groan! 

[JohnH]

Sounds like a rock-solid plan to me. 

[WITAXLADY]

double groan..

[Gail in Virginia]

He shale overcome, but make sure he doesn't take you for granite.

[Max W]

All joking aside, the numbers look to be way out of whack.    Six dollars at 6% would double in 12 years.  The late payment penalty  of 0.5 %/m maxes out at 25%. There one of two possibilities;  the amounts were miscalculated; or, they are related to something else, such as estimated tax penalty.

Before doing anything else, I suggest that a copy of the Account Transcript be obtained for that year.  The transcript will show what the penalty is for and when it was applied.  

 

[Gail in Virginia]

Is it possible that he originally owed much more, and part of the tax, penalty and interest have already been paid?  This is what remains.  I agree with Max that you need to look at the Account Transcript to see what actually happened.  I just never could resist a bad pun.

[Max W]

Although, interest keeps accruing, it only gets posted periodically, maybe every couple of years, or when some event triggers it.