IRS Practice Series: Computing Or Recalculating IRS Assessments For Interest & Penalties

Author: Eva Rosenberg

CPE Credit:  2 hours for CPAs
2 hours Federal Tax Law for CTEC
2 hours Federal Tax Related for EAs and OTRPs

This course will help you understand how IRS computes their penalties and interest. You will be introduced to tools that will help you with the computations. You will also learn how to get penalties and/or interest reduced.

This topic is the ninth course in the IRS Practice Series.

Publication Date: July 2016

Designed For
Any proactive, current or prospective, Circular 230 practitioner who understands that the IRS is ramping up the "close the tax gap". Tax practitioners who want to protect their clients from IRS' predatory collections action. Tax practitioners who want to prevent the erosion of their client base, as their clients turn to free and cheap tax preparation services online. Tax practitioners who want to develop the skills to prevent and/or resolve IRS collections actions. And tax practitioners who want to grow their business into this rapidly expanding market.

Topics Covered

  • Interest and penalty code sections
  • Where to find current interest and penalty rates
  • Tips to get penalties abated or reduced
  • Identifying reliable computation software

Learning Objectives

  • Recognize methods for reducing penalties and interest on assessed tax balances
  • Identify the first in the tax penalty abatement process
  • Describe tactics to get penalties abated when the IRS proposes a penalty and the taxpayer then has time to convince the IRS that the penalty is not warranted
  • Recognize the primary reason penalties exist
  • Identify which penalty relief criterion includes those cases that clearly have the law in the client's favor
  • Evaluate the importance the IRS place on the taxpayer's actions once the facts and circumstances changed and what attempt the taxpayer made to comply
  • Differentiate qualifying types of illness or disability
  • Recognize the Internal Revenue Service's (IRS) stated purpose of assessing penalties to taxpayers
  • Identify what can result in tax penalty abatement most of the time
  • Evaluate methods of abatement not included in penalty assessments but may prove effective
  • Recognize reasons the IRS may consider a Special Circumstance
  • Evaluate the statute of limitation on tax assessments for fraudulent returns
  • Identify how many separate IRS penalty provisions exist
  • Recognize when the IRS will abate penalties
  • Identify the penalty for a payroll tax deposit that is 2 days late
  • Evaluate circumstances when interest would not be disregarded for a period of time
  • Recognize reasons for not abating penalties not outlined
  • Identify mistakes take from other explanations
  • Illustrate how to prove you received oral advice from the IRS
  • Describe undue hardship
  • Identify circumstances where the IRS must accept a form as being timely filed


Instructional Method

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Knowledge in Interests and Penalties.

Advance Preparation

Registration Options

Regular Fee$49

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