Success Story: TAS Advocates for Penalty Abatement

July 5, 2018

Every year, the Taxpayer Advocate Service (TAS) helps thousands of people with tax problems. This story is only one of many examples of how TAS helps resolve taxpayer’s tax issues. All personal details are removed to protect the taxpayer’s privacy.

A taxpayer came to TAS for assistance because the IRS assessed a penalty for not reporting income accurately. The taxpayer relied on a tax professional while the taxpayer was on active military status, who incorrectly advised the taxpayer to not include wages earned while the taxpayer was out of the country.
The taxpayer was audited and agreed to including the additional income and paid the additional tax and penalty. However, the taxpayer wanted to dispute the penalty because he relied on a tax professional. The taxpayer submitted full payment, including the penalty, and filed a claim to reverse the penalty.
The IRS incorrectly interpreted the claim for penalty reversal as a claim to reverse the additional tax assessment and delayed processing of the penalty claim by more than 30 days. TAS contacted the IRS and requested they process the penalty abatement claim and provided support to show reasonable cause that the taxpayer tried to file correctly and had relied on incorrect advice of a tax professional. The IRS agreed and removed the penalty.

When working with the Taxpayer Advocate Service, each individual or business taxpayer is assigned to an advocate who listens to the problem and helps the taxpayer understand what needs to be done to resolve their tax issue. TAS advocates will do everything they can to help taxpayers and work with them every step of the way. Occasionally TAS features stories of taxpayers and advocates who work together to resolve complex tax issues. Read more TAS success stories.

Learn more about whether TAS can help you: TAS eligibility.