Penalty Games: Reducing IRS Penalties


January 25, 2018


Robert E. McKenzie

  1:00 PM ET | 12:00 PM CT | 10:00 AM PT | 120 Minutes

Course Field of Study : Tax
Course Program Level : Basic

* Not able to attend the live session? We can arrange an on-demand session for You. Please call 1-951-801-2324


An In-depth Understanding of IRS Tax Penalties and Expert Strategies to Prevent Them.

According to the Internal Revenue Service Restructuring Act, each notice that imposes a penalty must include the name of the specific penalty, the code section that imposes that penalty, as well as the computation of penalty. The Act also needs approval specifically from IRS management so that it can assess all the penalties not generated by computer, unless expected. This provision will not include the failures to file penalties, pay penalties or the penalties which arise due to failure of paying estimated tax. This provision was put to action after December 31, 2000.

Generally, when it comes to failure to file (FTF) and failure to pay (FTP), they are based on the amount of tax that should be shown on late-filed or late-paid return, lessened by any specific portion of tax paid before or on the due date prescribed during the return. Failure to file partnership return is an exception to the rule, which is based on $50 penalty per month, per month for each month of late return.

This webinar by our expert speaker and taxation expert Robert E. McKenzie will start with the origin of tax penalties. You will understand what filed returns are, what bad checks are, what happens when you fail to file tax returns, etc. Additionally, you will learn the process of computing penalties in details. The session will also discuss failure to deposit penalty and what is a reasonable cause. You will get to know the reasons for penalty relief and the statutory exceptions. Robert will draw conclusion by explaining what Reasonable Cause is, when a Reasonable Cause assistant is needed and what is happens during first time abatement. This session will use real IRS cases as a learning tool for participants.

Session Highlights:

  • Origins of Tax penalties
  • What is filed return and bad checks
  • What happens and what are the penalties if you fail to file tax returns or pay tax
  • How to compute penalties
  • What happens when you fail to deposit penalties
  • Cascading penalties according to IRC Sec. 6656
  • What is ordinary business care and Prudence
  • What are the reasons behind penalty relief
  • What is reasonable cause and what are the exceptions to the cause
  • When is a reasonable cause assistant needed
  • What happens during first time abatement
  • Case exhibits (case studies) as a learning tool
  • Reasonable Cause
  • Internal Revenue Service Preferred Reasons for Abatement of Penalties
  • A practical approach to seeking abatement of penalties

Who Will Benefit:

  • CPA's
  • Tax Lawyers
  • Accountants
  • Tax Compliance Managers
  • Payroll Professionals
  • Tax Professionals

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