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Where in Title 26 does it state how long does the IRS have to decide on the abatement of a 6694(b) penalty?
Anonymous2 views3 answers
I am looking through the IRC and I cant find it. I was wondering, WITHOUT BEING SUGGESTED TO HIRE AN ATTORNEY, where does it give the IRS a set time limit for the IRS to abate penalties from a filed Form 6118? Just for reference, the form along with 15% of the penalty was filed in May of 2014. Although the 6 month deadline to file in District Court has been missed, is there something in the IRC that governs how long the IRS has to make a decision to uphold the penalty? It's going on 2 years and I was simply curious if they have an indefinite amount of time they can wait or after a certain amount of time of NOT making a decions, do they have to abate the penalty by default?
To answer your question, someone is going to have to do some substantial research under the Code. But, the answer will be absolutely useless to you, because the rendition of your facts is not enough to give you an answer about your specific situation. There are a lot of "hard" factors and a lot of "soft" factors to take into account -- for instance -- someone needs to see the IRS transcripts and where the matter has been sourced within the IRS to give you any meaningful idea what is going on.
In making many penalty abatement applications, they frequently take quite a long time for the IRS to take action on. 2 years before getting a form response is not uncommon. The IRS is not in a big rush to abate penalties and they are completely understaffed and overwhelmed, and they are operating at 2x, 3x and 4x normal timeframes for processing requests.
Sometimes requests for abatement are never responded to. This happens frequently - they simply get misplaced. You might call the IRS and check the status. The agents can usually determine the status of the abatement request. I have re-requested abatements several times. Typically, I receive responses within 90 days of filing. You can search the Internal Revenue Manual (IRM) to see if the response time is addressed.
