In this week’s Ask An AdLaw Expert, we’re talking with our Director of Lien Expungement, Samantha DePrima, J.D., LL.M., about how individuals can get IRS penalties and interest refunded by using a reasonable-cause request.
Do you need assistance resolving back taxes or removing existing tax-lien disclosures from your CRD, BrokerCheck, IARD, or IAPD records? Learn more about our tax lien disclosure resolution services.
Transcript:
The short answer is yes. There is a way for penalties and associated interest to be refunded. It does require a formal request to the IRS. It’s called a “reasonable-cause request.” So reasonable cause must be shown for each tax period for which you are requesting a refund of penalties. The two most common penalties charged are failure to file and failure to pay penalties. In both instances, you have to meet the criteria that the IRS sets forth in order to qualify for removal. And you are going to have to show reasonable cause for each tax year when the penalties have been approved. We see a lot of these requests denied, and so it is really important to have counsel who has experience preparing these formal requests put together your specific reasonable-cause abatement request in order to give you the best possible shot of getting any of these refunded.
- Juris Doctorate from the University of Denver Sturm College of Law
- Master of Business Administration (MBA) with a major in Finance from the Keller Graduate School of Management
- Bachelor of Science in Business Administration (BBA from the University of Minnesota)
- Former FINRA licenses Series 7, 63, and 55 and former L&H license
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