Penalty waiver request

[Kea]

Client on extension passed away on 10/17/11 before filing return. Her executor is now filing the return. There is a balance due of under $1000.

How should we request waiver of failure to file penalties & possibly interest? Should I just include the Form 2210 and check Box A? But that would only apply to the interest?

The return will be filed showing the DOD and the c/o the executor info. But perhaps we should include a letter explaining time in hospital and DOD and politely requesting the penalty waiver?

I have done several tax returns for decedents but this is the first one that is not timely filed.

Thanks.

[JohnH]

You can attach the letter to the return, but it will probably be ignored and a penalty notice sent out. So it will be wise to keep a copy of the letter and send it in again in response to the penalty notice. You will probably be successful in getting the FTF and FTP penalties removed, but interest will still be due on the unpaid balance.

In any event, it won't hurt anything to attach the explanatory letter to the return - who knows, someone might actually read it. I;d forget about sending the 2210 - it doesn't apply in this case.

[Kea]

Thanks so much. We'll attach letter but let executor know to expect IRS notice anyway.

I'm not as concerned about the interest since that's only about $35. Waiving the penalties is more important.