IRS Interest & Penalty Mistakes & Errors
Documented IRS Errors & Solutions:
It is our experience that whenever an employee of the IRS gets involved with a taxpayer's account there is a higher risk that the IRS will make a mistake in computing interest and penalties.
Errors are less likely to happen when the IRS correspondence is completely automated. The IRS has capable software. The IRS employees that use the quality software have a way of making input errors. Some IRS employees know what they are doing. Some IRS employees don't have a clue. Just ask any one of the capable IRS employees. They will tell you the same thing (off the record).
Sometimes these errors are made by IRS employees that have a solid understanding of the tax law, but don't deal well with computers.
It is also our experience that many of these errors actually are in favor of the taxpayer! Many are not.
Those that use our software, us included, have had excellent luck persuading the IRS that our computations are correct. This is often as simple as sending our software's detailed interest computation to the IRS with a cover letter.
How to get the IRS/State Interest & Penalty Calculator:
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