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Reply to "IRS penalty- Settle or proceed to litigation? "
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[quote=Anonymous][quote=Anonymous]I’d pay the $20k. So that you can have some background basis I have very complex finances. My typical personal federal tax returns (not including any of the returns for my dozen plus businesses) is generally 200-300 pages. If I get a letter from the irs any year telling me that I owe them less than $10k I just pay it and when I get one I’m almost always positive that they are objectively wrong. When it is for more than $10k I have my accountant write a letter. It is usually successful. If not, I just pay it. I don’t think I’ve ever gotten a bill for more than $20k something and my personal returns usually show tax of $1M- 1.5M owing with peak years of $3M owing. My taxes are very clean. I don’t take any deductions that I am not entitled to take and if I were fully audited they likelihood of my owing the IRS is equivalent them owing me. But there is value in closing out the tax year. I do think you were entitled to the abatement, but I would pay the $20k and be done with it. [/quote] Op here. I do not even have one million :( and my taxes had been very straightforward. I would love to have clean taxes moving forward- and have used a CPA yearly right after this incident happened. [/quote]
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