This letter is in response to the tax notice dated October 5, 2015, (copy enclosed) for the $20,000 penalty assessment under IRC Section 6038A(d)(1) for failure to timely provide complete information on Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business for the period ended December 31, 2014. A copy of the executed Power of Attorney is enclosed.
We respectfully request abatement of the $20,000 penalty because the failure to file timely was due to reasonable cause under Reg. Sec. 1.6038A-4(b) and not willful neglect. Specifically, this abatement is requested pursuant to Treasury Regulation Section 1.6038A-4(b), relating to the affirmative showing of reasonable cause.
FACTS
• The 2014 Form 5472s were inadvertently filed late due to an honest misunderstanding. Zenstar (US), Inc. was formed on September 12, 2014. However, the corporation had no business transaction during 2014, and the ownership of the corporation has not been properly determined at the time of formation. Therefore, Form 7004 Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns, was not filed on behalf of the Taxpayer for the calendar year 2014, because we believe there was no filing requirements for the Form 1120 and Form 5472 prior to the due date of the returns, March 15, 2015.
• In August 2015, the Taxpayer finalized its ownership structure when the foreign
We also admit, that the rapport and trust we have in you over the years made us a little complacent. We did not thoroughly double check the information we received from Hinkle (but we didn't have a lot of information to review, we turned over all the original documents over the Hinkle), so we don't know what was scanned; nor what was or could be missing. Thusly; processing of our taxes was different that what we had done in the past. Additionally it was Hinkle that signed the final 1040 forms in lieu of you. Again, a lot of newness and change.
If a taxpayer fail to file an FBAR but is a non-willful violation, may be imposed a penalty of a maximum $10,000. Taxpayers who willfully fail to report a foreign financial account may be subject to a penalty equal to the greater of $100,000 or 50% of the balance in the account at the time of the violation, for each violation, under 31 U.S.C. Section 5321(a)(5) (IRM §4.26.16.6.5). Willful violations may also be subject to criminal penalties under 31 U.S.C. Section 5322(b) or 18 U.S.C. Section 1001. (Joel M. Barker,
Peaceful Pastures Funeral Home Inc. is an accrual basis taxpayer who sells prepaid goods and services to clients that will be provided for them at the time of their death. Goods and services are refundable upon the purchasers request at any time until the contracts are fulfilled. Peaceful Pastures Funeral Home Incorporated is in need of determining the period of recognition for income provide from a prepaid service for which they are an accrual basis taxpayer.
If we have requested that you provide your taxpayer information, and you have failed to provide it to this point, we are required, by law, to withhold a portion of your earnings, at a rate of 28 percent, to be
This type of form is often used by tax payers who have lost their old returns or who are filing for a mortgage. Some companies, banks or mortgage lenders require previous tax forms to make lending decisions. When older returns are needed, form 4506 is the way to obtain them. Once the taxpayer signs and dates the document, they just have to list any third party that they
Understands and agrees that unless all required information is available prior to tax return due date, filing an extension may be required. Further, Client understands and agrees that the tax authorities may
The purpose of this Memorandum for Record (“Memo”) is to evaluate Colorado Personnel Resources, Inc.’s (“CPR, Inc.” or “Company”) Hawaii General Excise Tax (“GET”) liability. Specifically, this Memo analyzes issues involving nexus, taxability, tax rate, and penalty waiver.
What are the tax implications if the couple sells the photos for $15,000,000 and then claim a charitable contribution deduction on their 2015 joint tax return? Are there any planning strategies to reduce the tax impact of the transaction?
I SPOKE WITH PEACEFUL TAX PAYER ABOUT THE AUDIT NOTICE THE IRS HAD SENT. IT CONTENDS THAT THE AMOUNT PREPAID UNDER PEACEFUL’S PROGRAM CONSTITUTES PREPAID INCOME THAT MUST BE INCLUDED IN PEACEFUL’S INCOME (AND THEREFORE SUBJECT TO TAX) IN THE YEAR IN WHICH IT IS RECEIVED. THE TAX PAYER WANTED TO KNOW IF THE IRS FINDINGS WERE CORRECT.
Whenever a business falls behind in reporting payroll taxes or paying the taxes to the IRS, there are consequences. The IRS can attach a late- payment fee or add a tremendous amount of interest to the original tax payment in addition to holding one person solely responsible for
At the beginning of November in 2007, the Statement of Financial Statements (SFAS) board decided to postpone the enactment of FIN 48 financial reporting and accounting and income taxes until later that year on December 15, 2007. The purpose of FIN 48 is to force public companies to analyze company’s tax positions and evaluate the probability that their tax position will require them to be audited and if they are audited will their records be sufficient and accurate. If an organization finds that their tax position is likely to not be sustained a liability is created and the tax benefit of their position decreases. Some tax positions that organizations should think about include the choice not to file a return in a certain location, a shift of revenue between tax jurisdictions, the characterization of revenue or a choice to not include reporting taxable income in tax documents. Additionally, a choice to classify a transaction, organization, or other position in a tax return as tax exempt, extra compensation in a C-Corporation, international transfer pricing, Inventory capitalization, and unrelated business income (Feeley & Driscoll, P.C, 2008)
I usually start my letters off by immediately wishing the person well and informing them that I am praying that the letter finds them in great spirits, but I feel like I owe you an apology first. We have been talking about writing one another letters for some time now, but I have been very slow about getting mine to you. I hope you can forgive me. I assure you, once we begin, it will be far more frequent and consistent. I think writing letters is such an intimate way to share your knowledge, experience, and stories with people. Unfortunately, countless people have abandoned letter writing as a form of communication. Sure, I could have written you and email or even texted you, but there is a child in me that finds joy in checking the mail while waiting for a letter. Knowing that a person’s words are enfolded inside an envelope, traveling to and through places that my eyes may never see, all just for me to read is moving. By writing me, you are keeping the hopeless romantic that I have become over these past four years alive. Thank you forgiving me words to read and stories to love.
This is Natalya Lesnikovskaya- your client. I 'm glad that you 've left me the message on the phone, confirming that you 'll be there on March 10th, 2017, at 9:00 AM in court. Since it 's been awhile that we 've seen each other, I just wanted to go over once more about this case.
As our Agent / Distributor (exclusive or non-exclusive) for the Territory of the Republic of Indonesia for the
There are several parties who can apply for this Annual Return application. They are including: