Getting IRS Penalties Waived

1. Introduction
2. Topics Covered 00:01:31
3. Penalty Provisions in the Tax Code 00:02:11
4. Assessment 00:02:42
5. Delinquency Penalties 00:08:32
6. Failure to File 00:09:29
7. Requirements for Timely Filed 00:11:03
8. SFRs 00:13:02
9. The Reasonable Cause Exception - Abatement 00:14:02
10. The Reasonable Cause Exception - Failure To File 00:15:51
11. Stine v. U.S., 106 Fed. Cl. 506 (2012) 00:18:49
12. Requesting Abatement 00:19:56
13. Fraudulent Failure to File 00:23:45
14. Failure to Pay 00:24:27
15. Failure to Pay - Increase 00:25:51
16. Failure to Pay - Applies & Does Not Apply 00:27:09
17. SFRs 00:27:34
18. Calculation 00:28:04
19. Installment Agreements 00:28:53
20. Reasonable Cause 00:29:15
21. Estimated Tax Penalties 00:31:21
22. Required Installments 00:32:38
23. Annualized Income Installment Method 00:35:13
24. Reasonable Cause 00:36:09
25. Exceptions and Waivers 00:36:14
26. Requesting Waiver 00:40:39
27. Failure to Deposit Employment Taxes 00:41:45
28. Type of Depositor 00:41:57
29. Monthly Depositors 00:43:05
30. Semiweekly Depositors 00:43:22
31. Small Business Rule 00:44:36
32. Form 941 Due Dates 00:45:21
33. Penalties for Late Payment 00:45:40
34. Penalties for Failure to File 941 00:46:47
35. Reasonable Cause 00:47:48
36. Safe Harbor for Failure to Pay 00:50:29
37. IRS Default Rule 00:51:04
38. Designating a Different Period 00:51:50
39. Trust Fund Recovery Penalty 00:52:39
40. Trust Fund Recovery Penalty - Employment Taxes 00:53:09
41. Code Section 6672 00:56:32
42. Code Section 6672 00:57:32
43. Responsible Person 00:58:25
44. Willfulness 01:02:03
45. Accuracy Related Penalties 01:05:08
46. Penalty 01:05:45
47. Reliance on Advice 01:07:13
48. Negligence 01:09:26
49. Reasonable Basis 01:13:20
50. Adequate Disclosure 01:15:10
51. Substantial Understatement 01:18:19
52. Reasonable Cause for Charitable Contributions 01:20:15
53. Miscellaneous Penalties 01:12:50
54. Due Dates and Penalty Amounts 01:23:35
55. Important Note 01:26:50
56. Civil Fraud 01:28:09
57. The Civil Fraud Penalty 01:30:14
58. Joint Returns 01:31:48
59. Common Defenses 01:33:27
60. Preparer Penalties 01:35:59
61. Understatement of Liability 01:335:12
62. Practice Failures 01:35:54
63. Challenging Penalty Imposition 01:37:00
64. Is the Amount Correct? 01:37:09
65. Supervisor Approval Required 01:37:50
66. First Time Penalty Abatement 01:38:52
67. Penalty Abatement Request 01:39:36
68. Interest 01:40:23
69. Interest on Penalty Portion 01:40:39
70. Presentation Closing 01:4:27

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  Chuck Borek

  Chuck Borek is a practicing attorney and founder of  the Borek Group, LLC. Chuck is also a CPA, and his background includes  five years as a partner in a public accounting firm. He received his law degree and MBA summa cum laude from the University of Baltimore in 1993, where he was editor [...]

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• Abatement 00:14:37, 00:20:01, 01:39:39
• Accuracy Related Penalty 00:01:42, 01:05:08
• Annualized Income Installment Method 00:35:13
• Asset 01:28:04
• Audit 00:04:05, 00:38:44
• Civil Fraud Penalty 01:23:20, 01:30:15
• CP2000 00:04:17
• Electronic Federal Tax Payment System (EFTPS) 00:49:51
• Estimated Tax Penalty 00:08:49
• Failure to Deposit Penalty 00:09:09, 01:38:56
• Failure to File Penalty 00:08:44, 00:09:29, 00:13:20, 00:23:47, 00:47:44, 01:38:54
• Failure to Pay Penalty 00:08:47, 00:10:24, 00:24:27, 00:46:48, 01:38:55
• Fair Market Value (FMV) 01:20:41
• Federal Insurance Contributions Act (FICA) 00:27:19, 00:53:33
• Form 1099 00:16:38, 00:31:44
• Form 1099-NEC 01:24:16
• Form 8725 01:15:16, 00:23:17
• Form 8725-R 01:15:18
• Form 941 00:45:18, 00:47:28
• Form W-2 00:16:36, 00:23:17, 00:26:41
• Independant Contractor 00:31:42
• Information Return Penalty 00:10:42, 01:23:01
• Interest 00:02:08, 00:28:10
• IRC Section 6672 00:56:39
• Liability 00:36:26
• Nonprofit Corporation 00:59:45
• Notice of Intent to Levy 00:13:28, 00:26-01
• Reasonable Cause 00:14:19, 00:19:34, 00:29:23, 00:36:12, 00:40:23, 00:47:48
• Safe Harbor  00:50:31
• SFR - Substitute For Return 00:13:05, 00:27:38, 01:05:53
• Tax Cuts And Job Act 00:25:24
• Trust Fund Penalty 00:52:39
• Wage 00:53:24

Abatement: A tax abatement is defined as the reduction of, or exemption from, taxes granted by a government for a specified period, usually to encourage certain activities such as investment in capital equipment (which includes buildings). A tax incentive is a form of tax abatement.

Accuracy Related Penalty: An Accuracy-Related Penalty applies if you underpay the tax required to be shown on your return. Underpayment may happen if you don't report all your income or you claim deductions or credits for which you don't qualify.

Annualized Income Installment Method : The annualized income installment method is an IRS-approved approach for calculating estimated tax payments for taxpayers whose income is received unevenly throughout the year (e.g., seasonal businesses, large capital gains at year-end, or fluctuating self-employment income).

Asset: Property owned by a person or company, regarded as having value and available to meet debts, commitments or legacies.

Audit: A formal examination of an organization's or individual's accounts or financial situation

CP2000: IRS notice CP2000 is a letter generated and sent to you by the IRS system when the information on your tax return doesn't match the income and payment information the IRS has on file for you. Usually, it means that you didn't report all of your income properly.

Civil Fraud Penalty: If the taxpayer's underpayment of his taxes is intentional, he may be subject to the civil fraud penalty.

Electronic Federal Tax Payment System (EFTPS): The Electronic Federal Tax Payment System (EFTPS) is a free service from the U.S. Department of the Treasury. EFTPS is a convenient way to make federal tax payments online or by phone, 24/7.

Estimated Tax Penalty: The Underpayment of Estimated Tax by Individuals Penalty applies to individuals, estates and trusts if you don't pay enough estimated tax on your income or you pay it late. The penalty may apply even if we owe you a refund.

Failure to Deposit Penalty: The penalty you pay is a percentage of the taxes you did not deposit on time, in the right amount, or in the right way. For amounts not properly or timely deposited, the penalty rates are: 2% — deposits made 1 to 5 days late, 5% — deposits made 6 to 15 days late, 10% — deposits made 16 days or more late, but on or before the 10th day after the date of the first notice we sent you asking for the tax you owe.

Failure to File Penalty: The Failure to File Penalty applies if you don't file your tax return by the due date. The penalty you must pay is a percentage of the taxes you didn't pay on time.

Failure to Pay Penalty: The Failure to Pay Penalty applies if you don't pay the tax you report on your tax return by the due date or approved extended due date. The penalty you must pay is a percentage of the taxes you didn't pay.

Fair Market Value (FMV): The term fair market value is used throughout the Internal Revenue Code among other federal statutory laws in the USA including Bankruptcy, many state laws, and several regulatory bodies. In litigation in many jurisdictions in the United States, the fair market value is determined at a hearing.

Federal Insurance Contributions Act (FICA): The Federal Insurance Contributions Act is a United States federal payroll contribution directed towards both employees and employers to fund Social Security and Medicare—federal programs that provide benefits for retirees, people with disabilities, and children of deceased workers.

Form 1099: Form 1099 is one of several IRS tax forms used in the United States to prepare and file an information return to report various types of income other than wages, salaries, and tips (for which Form W-2 is used instead). - Wikipedia (https://en.wikipedia.org/)

Form 1099-NEC: In the context of 1099 tax filing, NEC stands for “Nonemployee Compensation” (the first letters of the three words None, Employee and Compensation). Most tax payers recognize NEC as box 7 on Form 1099-MISC. NEC is used to report income paid to independent-contractors / the-self-employed (referred to as 1099 employees for simplification purposes). So, while employers report income that gets paid to employees on Box 1 (Wages, tips, other compensation) of the W2 form, payers report income that gets paid to none-employees on Box 7 (NEC) of the 1099-MISC form. As an individual, if you received form 1099-MISC instead of Form W-2 then the payer did not consider you an employee and did not withhold income tax or social security and Medicare tax.

Form 8725: Use Form 8725 to report and pay the 50% excise tax imposed under section 5881 on the gain or other income realized on the receipt of greenmail

Form 8725-R: Form 8725-R is not a recognized IRS form. The form related to accounting disclosures is Form 8275-R, the Regulation Disclosure Statement. Form 8275-R is used to disclose a position taken on a tax return that contradicts a Treasury regulation. This form helps taxpayers avoid certain accuracy-related penalties, provided the position taken has a reasonable basis and isn't frivolous.

Form 941: Federal form 941, also called a quarterly federal tax return, is an IRS return that employers use to report their FICA taxes paid and owed for the period. The IRS uses this form to calculate the amount of employer tax payments made during the year as well as the amount of taxes due at the end of the year.

Form W-2: Form W-2 is an Internal Revenue Service tax form used in the United States to report wages paid to employees and the taxes withheld from them. Employers must complete a Form W-2 for each employee to whom they pay a salary, wage, or other compensation as part of the employment relationship. - Wikipedia (https://en.wikipedia.org/)

Frivolous Return Penalty: The taxpayer submits what is purported to be a required return. The purported return does not contain sufficient information to judge the substantial correctness of the self-assessment or contains information that, on its face, indicates that the self-assessment is substantially incorrect. Section 6673(a) allows the Tax Court to impose a penalty of up to $25,000 when it appears that: a taxpayer instituted or maintained a proceeding primarily for delay, a taxpayer's position in such proceeding is frivolous or groundless, or. a taxpayer unreasonably failed to pursue administrative remedies.

IRC Section 6672: Any person required to collect, truthfully account for, and pay over any tax imposed by this title who willfully fails to collect such tax, or truthfully account for and pay over such tax, or willfully attempts in any manner to evade or defeat any such tax or the payment thereof, shall, in addition to other penalties provided by law, be liable to a penalty equal to the total amount of the tax evaded, or not collected, or not accounted for and paid over.

Independent Contractor: An independent contractor is a person or entity contracted to perform work or provide services to another entity as a non-employee. As a result, independent contractors must pay their own Social Security and Medicare taxes. - Investopedia (https://www.investopedia.com/)

Information Return Penalty: An information return penalty may apply if you don't file information returns or provide payee statements timely or accurately.

Interest : Interest is the charge for the privilege of borrowing money, typically expressed as annual percentage rate (APR). Interest can also refer to the amount of ownership a stockholder has in a company, usually expressed as a percentage.

Liability: In financial accounting, a liability is defined as the future sacrifices of economic benefits that the entity is obliged to make to other entities as a result of past transactions or other past events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future.

Nonprofit Corporation: A nonprofit organization, also known as a non-business entity, not-for-profit organization, or nonprofit institution, is an organization dedicated to furthering a particular social cause or advocating for a shared point of view.

Notice of Intent to Levy: A Notice of Intent to Levy is a final warning from the IRS that they plan to legally seize your property or assets to satisfy a seriously delinquent tax debt. It is a required legal notification before the IRS can begin the levy process.

Reasonable Cause : Reasonable cause is based on all the facts and circumstances in your situation. The IRS will consider any reason which establishes that you used all ordinary business care and prudence to meet your federal tax obligations but were nevertheless unable to do so.

SFR - Substitute For Return: The term "substitute for return" (SFR) most commonly refers to a tax return that the IRS may prepare on a taxpayer's behalf if they fail to file their own tax return.

Safe Harbor: A safe harbor is a provision of a statute or a regulation that specifies that certain conduct will be deemed not to violate a given rule. It is usually found in connection with a vaguer, overall standard. Under the safe harbor, a “rental real estate enterprise” is treated as a trade or business for purposes of Sec. 199A if at least 250 hours of services are performed each tax year with respect to the enterprise. ... The safe harbor requires that separate books and records be maintained for the rental real estate enterprise.

Tax Cuts and Jobs Act: The Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018, Pub.L. 115–97, is a congressional revenue act of the United States originally introduced in Congress as the Tax Cuts and Jobs Act, that amended the Internal Revenue Code of 1986.

Trust Fund Penalty: The term trust fund recovery penalty refers to a tax penalty assessed against the directors or officers of a business entity that failed to pay a required tax on behalf of its employees.

Wage: A fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee, especially to a manual or unskilled worker.