Thursday, August 24, 2017

IRS Abates $10,000 Late-filing Penalty for Nonprofit Organization

It's always a relief to receive an IRS CP210 Notice showing that a penalty waiver has adjusted the amount due to zero. This is a notice I received recently for a nonprofit client for which I have power of attorney. I wrote a reasonable cause abatement request on their behalf back in May 2017. So it took about two months for the IRS to process the correspondence and offer abatement of the $10,000 late-filing penalty for their Form 990.

A notice that is also sent out at roughly the same time as the CP210 is the CP141R, letting the organization know that the penalty charge has been removed from their account:


In this case, I wrote the letter myself. But in many cases, the abatement requests are written by nonprofit directors, CPAs, or attorneys who have purchase my Form 990 reasonable cause penalty abatement DIY materials and have written their own letter. All kinds of organizations have been successful in getting their penalties waived.

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