keith cpa Posted October 22, 2007 Report Posted October 22, 2007 A new client owes from 2001 and 2003. The tax is from early distribution penalties from an IRA. The problem is the investment company shows a code 2 (exception applies) The preparer at the time added the penalty. Question: It is too late to amend, but is there any recourse to correct the error in tax prep or abate the penalties/interest? Thanks for your help! Keith Quote
jainen Posted October 22, 2007 Report Posted October 22, 2007 >>is there any recourse to correct the error in tax prep or abate the penalties/interest?<< You can file an offer in compromise based on doubt as to liability. Will the client agree to pay 1/3 or 1/2 (plus your fee) to get all this behind him? You will need to document that an exception did in fact exist, other than just the 1099 said it did. Quote
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