(973) 507-9760 Paul@wiggmax.com

File the 1120 with a  properly completed Form 5471 as quickly as you can.  Attach a brief statement claiming reasonable cause for the late filing.

The IRS will, in most cases, send a computer generated notice that imposing the $10,000 penalty for late filing of the Form 5471.

Once the notice arrives, determine whether it is a computer generated generic notice or from a field office.  If you are notified of the penalty by the field office use the normal procedures to respond and seek to have the penalty removed.  If you receive a computer-generated notice there is a different, special place to file your appeal.  Check the Internal Revenue Manual (available on-line) for details.

Dont file your appeal in the wrong place, the IRS will refer the appeal to the right office and you will lose 3 to 6 months in turn around time in the process.  If you lose the appeals you will have to pay interest on the delayed payment.

Penalty relief may be available for you for any of the following reasons:  (find a reason that each applies)

1.    First time abatement

        If the taxpayer has not previously been required to file a return or has no prior penalties (except the estimated tax penalty, ) for the preceding 3 years on the same return  and has filed, or filed a valid extension for, all currently required returns and paid, or arranged to pay, any tax due.

2.    Reasonable Cause

       The taxpayer exercised ordinary business care and prudence, but nevertheless was unable to comply with a prescribed duty within the prescribed time.

       The IRS will consider a history of prior compliance as a positive factor.

       Length of time before compliance was achieved is a negative factor, the reason for failure to file may have prevented timely filing, but unless it continued the reason may not justify continued non compliance.

        If the circumstances were beyond the taxpayers control,  could the taxpayer have planned so that such a foreseeable interruption would not have resulted in failure to comply?

3.    Administrative Waiver

4.    Hazards of Litigation

Make sure to do the usual things.  Have proof of mailing.  File the appeal in a timely manner.  Send the IRS copies and keep the originals in your files. Make sure that you include authorization as the taxpayers representative, make sure that all required signatures are included.

profile image
  • Save
Oded Hecht
Very good experience. I had some uncommon and large financial situations abroad as a US Citizen. I just wanted to make sure I am going about it legally and wisely. I am a business executive (Harvard B. School), having interacted with many top lawyers worldwide, and working with Paul was a pleasure and a wise choice. Beyond helping me professionally to solidify a winning strategy through his sound knowledge and experience, the interaction was exceptionally forthcoming and pleasant. I would recommend Paul without any hesitation!
profile image
  • Save
Maria Alexander
Paul is an excellent attorney for small business owners like myself. He will make the appropriate research and make sure that the documents I have are all in working order and official. Paul always responds to phone my calls immediately, and he works fast whenever I need to have documents prepared quickly. His knowledge has helped me steer my business in the right direction and his advice is always on point and concise. I’ve had the pleasure of using Paul’s services for nearly a decade. During this time I had help with drafting and reviewing the following: several lease contracts, employee contracts, confidentiality and non-disclosure agreements, new client contract/liability waivers, US copyright electronic registrations, independent contractor agreements, website disclosure language, video release forms, and business registrations with the state. Having Paul as an attorney and being able to reach out to him whenever I have an emergency makes me more confident to run my business and I know that if I have a legal problem Paul will be there to help me.
profile image
  • Save
mathew gajewski
Cool guy, extremely nice and knows his stuff.
profile image
  • Save
Dan Trolaro
Took the time to listen, ask good questions, and provide good thoughts during initial phone call. Highly recommend giving him a call.
profile image
  • Save
Mr. Wigg-Maxwell helped me out with a complicated international inheritance tax question. He was quick to respond with a knowledgeable answer. I would happily bring any future tax issues I have to Mr. Wigg-Maxwell for resolution.
Share via
Copy link
Powered by Social Snap