Penalty abatement

Are the IRS and DOL entertaining waivers of late filing fees?  I was under the impression that after the advent of the late filer program, they didn't want to be bothered with "my dog ate it" stories.  I just heard someone say that they do it regularly.

Also do(n't) late filing penalties go back to the original due date if you miss the extension?

9 minutes ago, Bird said:

Are the IRS and DOL entertaining waivers of late filing fees?  I was under the impression that after the advent of the late filer program, they didn't want to be bothered with "my dog ate it" stories.  

That is my understanding.  The exception would be a VERY good reason.

14 minutes ago, Bird said:

I just heard someone say that they do it regularly.

Opposite of what I have heard.

14 minutes ago, Bird said:

Also do(n't) late filing penalties go back to the original due date if you miss the extension?

They sure do...

We've had a couple of EZ filers successfully use the "reasonable cause" method recently. Rev Proc 2015-32 specifically says that this option is still available to EZ filers, with the caveat that if the reason is not accepted, penalty relief is not available. I don't think I'd try it on a filing other than an EZ, even though the reasonable cause exception is still in Code section 6652(c)(5).

Thanks for the feedback!

We've filled some plans and used the "reasonable cause"; however, each abatement involves a series of up-and-back letters between IRS and the individual requesting the abatement.  The reason is that Person #1 at IRS sends out Letter #1; Responder answers, Person #2 receives the answer, most often does not check the file...we had this happen once or twice and the actual abatement took 4 months.  Attached is the "reasonable cause criterion" if you need it.

Reasonable Cause Criteria.pdf

Thanks for the additional info on reasonable cause.

Taking this a bit further, what about the DOL?  Do they automatically accept the IRS' decision?