Penalty Abatement
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Course Content
Course Description
Penalty notices are common, but many penalties can be reduced or removed when the taxpayer can document a valid basis for relief. This course from December 17, 2024 provides a practical, step-by-step approach to requesting penalty abatement, with an emphasis on building a clear reasonable cause narrative, knowing when First Time Abatement (FTA) is a fit, and identifying the documentation that strengthens a request.
You will walk through a complete workflow: reviewing notices and penalty assessments, confirming details on IRS account transcripts, structuring phone or written requests (including Form 843 when appropriate), and addressing multiple penalties on a single notice. The course also highlights how to document actions for the client file and verify that abatements posted correctly.
Learning Objectives
- Identify common IRS penalties and where to confirm assessments using IRS notices and account transcripts.
- Distinguish between First Time Abatement (FTA) and reasonable cause relief and know when each applies.
- Build a reasonable cause narrative using a clear timeline tied to the filing/payment period.
- Select and organize supporting documentation that matches the stated cause (medical, disaster, IRS error, etc.).
- Prepare an effective written request (including Form 843 when appropriate) and document phone requests.
- Address multiple penalties in one case by separating issues and requesting specific relief for each item.
- Verify that abatements posted correctly and establish controls to reduce repeat issues.
About The Presenter:
Allan J. “A.J.” Reynolds, EA
A.J. is an enrolled agent (EA). He has immense experience in various areas in taxation, which encompasses over 30 years. His practice centers on Individual, Business, and Estate Tax preparation. In addition, A.J. specializes in IRS Audits, Appeals, Collections, Innocent Spouse, Independent Contractor vs. Employee Issues and Civil Tax Fraud Representations. A.J.’s clientele ranges from the average worker to fortune 500 executives. He brings his everyday “in the trenches” experience to the seminars to assist attendees with real issues facing tax professionals. A.J. has spoken for Basics + Beyond Income Tax Seminars, NTI Resort Conferences, NATP National Conference and Webinars, NAEA, and Center for Agriculture Law and Taxation of Iowa State University. A.J. started his tax career with a National CPA firm in San Diego, CA after proudly serving five years in the United States Navy. Outside his tax practice, A.J. is a member of the Diocese of Sioux City Priests’ Pension & Welfare Board and the Investment Advisory Board for the Diocese. When not working, A.J.’s time is spent in various activities with his wife and their two children.
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