Penalty and Interest Due

[Diane]

I made an error preparing a client's 2007 tax return. A lot of the Schedule D transactions did not get recorded. When the return was amended it resulted in an additional balance. The client has now received a bill for penalty ($1,785.00) and interest ($638.71) for a total of $2,423.71. I feel that I should pay either all of the amount or part of the amount. Being a small business, paying the $2,423.71 will be a really big dip in my income. But, it was my mistake. Any opinions?

Diane

[TAXBILLY]

D:

Read this discussion:

http://www.atxcommunity.com/index.php?show...amp;#entry35528

taxbilly

[Diane]

Thanks. After reading that post, I prepared Form 843 trying for the abatement, told my client to mail back the notice with the 843 enclosed, and enclose a check for the Interest. I'm hoping they abate the penalty. But, since the whole thing was my fault (still can't believe I missed that input!) I told the client that I would pay the penalty if it's not abated.

Diane