0 - Live - All - Services Feedback IRS Penalty Abatement New Service Information Please provide as much information as you can about the new service in the categories below. Name of New Service * Area or Jurisdiction of Service * Alabama Alaska All States Arizona Arkansas California Colorado Connecticut D.C. 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Contribute Service Information toIRS Penalty Abatement What service information are you contributing? Service Description RFP Other Update which description section? Service DescriptionROIOther BenefitBenefit UtilizationIndustry PricingCommon Fee ScheduleOther CostsExpectations of ClientService RisksService Risk TimingService ProcessCommon Industries for ServiceAuthorities and ReferencesOther Comments Update which part of the RFP? EligibilityRecommendedOther SectionsOther Feedback Other feedback Service Provider Considerations & LimitationsOther Feedback Brief description of the service: * Recover or reduce IRS penalties as far back as 2001 for failing to file a tax return, pay on time, and/or to deposit taxes when due. Expected range of ROI, if applicable: Reductions of penalty balances due occur immediately. IRS refunds can take between 2 weeks and 6 months. Describe non-ROI benefits: Refund from the IRS or reduction in penalty balance due to the IRS. Examples: Increased database security, lower audit risk, decreased legal liability. Describe the ability and timing of the business to utilize the benefits, if applicable: For example, many federal tax credits will not be received for 3-6 months after filing an amended return, are applied as direct offset to a timely filed return, or are rolled over to to offset tax liability in future years. Credits can be utilized against tax liability, some can be used against payroll tax liability, etc. Describe the industry pricing of the service: Typically 5%-30% of the value recovered. If negotiated, usually the larger the recovery the lower percentage paid. Examples: Contingency fee between 10-20% of the benefit calculated/received; Fixed fee based on estimated hours involved in delivery the service; etc. Describe common fee schedules: Depends on the Business's financial circumstances as well as the size of the recovery. Typically, smaller recoveries require payment upfront while larger recoveries split invoices, 1 to start the service and 1 at the complete of the service or upon actual recovery by the Business. Examples: Contingency fee collected upon completion of service; Fixed fee collected in thirds, first at project commencement, second at certain milestone, third at service completion; etc. Describe what is expected from the client of the professional service: Business signs an IRS Form 2848, usually prepared by the provider. Examples: Time commitment from certain personnel, etc. Describe other costs to a client of the professional service not already described: Describe the risks of the service to the client: There are two timing risks. First, if a penalty is still accruing, the service does not stop more penalties from accruing, it only abates previously accrued penalties. For example, if the Business is late on paying their Federal income taxes they are accruing penalties for failure to pay. If the penalties already accrued are abated before the Business pays its Federal income taxes, then failure to pay penalties will continue to accrue after the abatement. In this case, the taxes should be paid first, then the Business should seek abatement of the penalty. The second timing risk is choosing which year to request. Typically, except for particular circumstances, penalty abatements must occur at least 3 years apart. So if the Business is expecting to incur a larger penalty this year then they have in the three previous years, then the Business should wait until the penalty for this year has accrued and seek abatement for the largest penalty within a 4 year period. Examples: Amending tax returns extends the window for tax returns to be audited as well as certain filings raise the chance of audit, and audits for this service have mixed outcomes industry wide with 50% of audits resulting in the loss of some or all of the credit; etc. Describe the timing of risks of the service to the client: Examples: Referencing the above amending tax returns, audit risk generally is present 6 months to 3 years after filing a return. Audits themselves for this service may take 6 months to 1 year, appeals to unfavorable audit results may take another year, and lawsuits could add additional years to the resolution of an unfavorable audit. Describe the process for completing the service: Business provides service provider the necessary information to complete IRS Form 2848. Service provider prepares the IRS Form 2848 and the business signs it. IRS Form 2848 is submitted to the IRS to give service provider access to business's IRs tax account for investigation into penalty abatement opportunities. Once identified, the service provider often presents those opportunities to the Business, negotiates a fee, then contacts the IRS on the Business's behalf to negotiate for the penalty abatement. Examples: For many tax credits, the Provider requires accounting data and communication with the Client's CFO or accounting rep. Provider calculates the credit and prepares the filing. Client signs filing. Provider files credit. Describe the common industries of category of businesses that commonly receive this service: All List the authorities governing the service so businesses may do additional research, if applicable: Internal Revenue Manuals (IRM) 20.1.1.3.3.2.1 Penalties Eligible for Abatement: Internal Revenue Code (IRC) 6651; IRC 6656; IRC 6698; IRC 6699 Example: Tax credits can be found in the U.S. Code Title 26, Sections 21 - 52 as well as Treasury Regulation, Title 26, Sections 1.21 - 1.52. Other Service Description Comments Eligibility requirements comments: Service recommendation comments Other RFP comments Describe Provider considerations or limitations in providing this service. For example: Legal services can only be delivered under states' laws where the provider is licensed to practice. Cost Segregations require site visits, therefore some providers only service specific geographic areas. Any feedback not solicited above can be put here Or upload comments here Drop a file here or click to upload Choose File Maximum file size: 268.44MB plus1 Add minus1 Remove Brief description of the service: * Recover or reduce IRS penalties as far back as 2001 for failing to file a tax return, pay on time, and/or to deposit taxes when due. Describe the service like you would to a customer. Field cannot be blank. If using the upload below, just say so in this field. Expected range of ROI, if applicable: Reductions of penalty balances due occur immediately. IRS refunds can take between 2 weeks and 6 months. Describe non-ROI benefits: Refund from the IRS or reduction in penalty balance due to the IRS. Examples: Increased database security, lower audit risk, decreased legal liability. Describe the ability and timing of the business to utilize the benefits, if applicable: For example, many federal tax credits will not be received for 3-6 months after filing an amended return, are applied as direct offset to a timely filed return, or are rolled over to to offset tax liability in future years. Credits can be utilized against tax liability, some can be used against payroll tax liability, etc. Describe the industry pricing of the service: Typically 5%-30% of the value recovered. If negotiated, usually the larger the recovery the lower percentage paid. Examples: Contingency fee between 10-20% of the benefit calculated/received; Fixed fee based on estimated hours involved in delivery the service; etc. Describe common fee schedules: Depends on the Business's financial circumstances as well as the size of the recovery. Typically, smaller recoveries require payment upfront while larger recoveries split invoices, 1 to start the service and 1 at the complete of the service or upon actual recovery by the Business. Examples: Contingency fee collected upon completion of service; Fixed fee collected in thirds, first at project commencement, second at certain milestone, third at service completion; etc. Describe what is expected from the client of the professional service: Business signs an IRS Form 2848, usually prepared by the provider. Examples: Time commitment from certain personnel, etc. Describe other costs to a client of the professional service not already described: Describe the risks of the service to the client: There are two timing risks. First, if a penalty is still accruing, the service does not stop more penalties from accruing, it only abates previously accrued penalties. For example, if the Business is late on paying their Federal income taxes they are accruing penalties for failure to pay. If the penalties already accrued are abated before the Business pays its Federal income taxes, then failure to pay penalties will continue to accrue after the abatement. In this case, the taxes should be paid first, then the Business should seek abatement of the penalty. The second timing risk is choosing which year to request. Typically, except for particular circumstances, penalty abatements must occur at least 3 years apart. So if the Business is expecting to incur a larger penalty this year then they have in the three previous years, then the Business should wait until the penalty for this year has accrued and seek abatement for the largest penalty within a 4 year period. Examples: Amending tax returns extends the window for tax returns to be audited as well as certain filings raise the chance of audit, and audits for this service have mixed outcomes industry wide with 50% of audits resulting in the loss of some or all of the credit; etc. Describe the timing of risks of the service to the client: Examples: Referencing the above amending tax returns, audit risk generally is present 6 months to 3 years after filing a return. Audits themselves for this service may take 6 months to 1 year, appeals to unfavorable audit results may take another year, and lawsuits could add additional years to the resolution of an unfavorable audit. Describe the process for completing the service: Business provides service provider the necessary information to complete IRS Form 2848. Service provider prepares the IRS Form 2848 and the business signs it. IRS Form 2848 is submitted to the IRS to give service provider access to business's IRs tax account for investigation into penalty abatement opportunities. Once identified, the service provider often presents those opportunities to the Business, negotiates a fee, then contacts the IRS on the Business's behalf to negotiate for the penalty abatement. Examples: For many tax credits, the Provider requires accounting data and communication with the Client's CFO or accounting rep. Provider calculates the credit and prepares the filing. Client signs filing. Provider files credit. Describe the common industries of category of businesses that commonly receive this service: All List the authorities governing the service so businesses may do additional research, if applicable: Internal Revenue Manuals (IRM) 20.1.1.3.3.2.1 Penalties Eligible for Abatement: Internal Revenue Code (IRC) 6651; IRC 6656; IRC 6698; IRC 6699 Example: Tax credits can be found in the U.S. Code Title 26, Sections 21 - 52 as well as Treasury Regulation, Title 26, Sections 1.21 - 1.52. Other Service Description Comments Eligibility requirements comments: Service recommendation comments Describe Provider considerations or limitations in providing this service. For example: Legal services can only be delivered under states' laws where the provider is licensed to practice. Cost Segregations require site visits, therefore some providers only service specific geographic areas. Any feedback not solicited above can be put here Or upload comments here Drop a file here or click to upload Choose File Maximum file size: 268.44MB Contact Email * For if we have questions about your submission. Submit If you are human, leave this field blank.
