In this episode, Amro Badran sits down again with Christopher Nichols, Director of Tax Resolution at Badran Tax and a retired IRS Revenue Officer and Appeals Settlement Officer, to explore the topic of penalty abatement. Chris shares valuable insights on how taxpayers can request the IRS to remove penalties and interest charges. With expertise in IRS procedures, Chris walks listeners through the process of filing for a reasonable cause abatement and the steps to take when penalties arise.

Christopher Nichols also explains the various circumstances under which penalties can be abated, including serious illness, natural disasters, and mistakes made by tax professionals. Whether you're a business owner or an individual taxpayer, understanding the right steps to take can save you significant amounts of money.

Expect to Learn:

1. What reasonable cause abatement is and how it works with the IRS.
2. Key factors the IRS considers when deciding to remove penalties and interest.
3. How personal situations like illness or loss of records can impact your eligibility for abatement.
4. The importance of documentation and verification when filing for penalty abatement.
5. Tips for ensuring a successful penalty abatement request.

Episode Breakdown with Timestamps:

[00:00] – Introduction to penalty abatement and the IRS process

[01:00] – What is the reasonable cause of abatement?

[03:06] – Key criteria for reasonable cause: illness, death, and more

[06:14] – The importance of providing documentation to support your case

[08:00] – What to do if the IRS denies your penalty abatement request

[10:24] – The form for penalty abatement and its role

[11:30] – How long the abatement process takes and when penalties continue to accrue

[12:57] – What happens if the penalty is paid before the abatement request is processed

[13:30] – How to deal with multiple penalty abatements across different years

[15:12] – Special cases: filing late due to unforeseen circumstances

[17:25] – Can spouses blame each other for penalties?

[18:41] – Resolving issues caused by a tax preparer’s mistake

[19:01] – Wrap-up and final advice for penalty abatement requests

Follow Christopher Nichols:

👉 LinkedIn: https://www.linkedin.com/in/christopher-nichols-b1b515355/

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