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

Author: Eva Rosenberg

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

Are you familiar with the guidelines the IRS uses to compute penalties and interest? Course participants gain valuable computation tools, as well as strategies for penalty and interest reduction.

Publication Date: July 2019

Designed For
Any proactive, current or prospective, Circular 230 practitioner that understands the IRS is ramping up the "close the tax gap". Tax practitioners who want to protect their existing clients from IRS' predatory collections action and grow their business into this rapidly expanding market.

Topics Covered

  • Introduction to penalties and their purpose
  • Dealing with Proposed and Assessed Penalties
  • Penalties in detail
  • Preparer Penalties
  • Recomputing and Reducing penalties
  • Career Reducing penalties
  • Resources

Learning Objectives

  • Recognize and implement methods for reducing penalties and interest on assessed tax balances
  • Describe the steps in the tax penalty abatement process
  • Identify which penalty relief criterion includes those cases that are specifically about using the law in the client's favor
  • Recognize how much importance the IRS places on the taxpayer's actions once the facts and circumstances change and what attempt the taxpayer make to comply
  • Identify which circumstance an administrative waiver might be allowable
  • Describe the §Sec. 6651(a)(2) taxpayer penalty for failing to timely pay a tax
  • Recognize what you should try and get for your clients, before paying penalties and the related interest
  • Describe the Internal Revenue Service's stated purpose of assessing penalties to taxpayers
  • Identify what can result in tax penalty abatement most of the time
  • Recognize a method of abatement is not discussed, but may prove effective
  • Describe what the IRS might consider a Special Circumstance
  • Identify the statute of limitation on tax assessments for fraudulent returns
  • Recognize how many separate IRS penalty provisions exist
  • Identify how the IRS will abate the penalties
  • Recognize the penalty for a payroll tax deposit that is two dates late
  • Differentiate circumstances which would interest NOT be disregarded for a period of time
  • Identify the order of payment allocated by the IRS, when a taxpayer fails to specifically allocated a payment to the IRS


Instructional Method

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic knowledge in interests and penalties.

Advance Preparation

Registration Options
Regular Fee $59.00

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