Company beats IRS penalties with Lawful Money
Here's a traditional corporation, with EIN, bank account & W4/W2 employees - your typical small business ensnared in the system. The company was a weekly depositor of federal withholding & employment taxes. For example, If payday was Tuesday then company was required by statute to pay US Treasury the following Tuesday. In 2011 company was late with payments (some weeks over a month late) and racked up penalties over $4800. Here's the timeline, attachments are below...
April 2012- IRS sends CP161 notice (Company ignores that one)
June 2012 - IRS sends CP504B letter, Notice of Intent to Levy (yeah whatever)
July 2012 - IRS sends FNOITL, Final Notice Of Intent To Levy
Are you thinking this should be an easy win for the IRS? that they'll steamroll right over the company? No so fast, the company was experimenting with redeeming Lawful Money. Company calls the IRS to negotiate a deal, rep says cannot do it, suggests the Form 843. So in July 2012 company files that Request for Abatement. They attach several reasons (Line 7), most were pretty lame in my estimation, one cites the weak economy and one only asks for 1-day subtraction & recalculation of penalties. Except one argument was, I'm paraphrasing, "our bank account contains lawful money pursuant to 12 USC 411 and you shouldn't assume it's yours to take. Legal issues may result ...". Company also attached copy of a stamped lawful money bank deposit.
http://jesse2012.com/CP161_.jpg
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http://jesse2012.com/CP504B.jpg
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http://jesse2012.com/FNOITL.jpg
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http://jesse2012.com/f843.jpg
Awesome Job! Few questions
Quote:
Originally Posted by
JohnnyCash
Ah yes. Here are the Form 843 attachments. (Bear with me as I get it uploaded. NOTE to other posters: "attachments" taller than 600 pixels are reduced to that size by forum software. But if your image is external, sitting on the internet, you can use the IMAGE tag and get it full size.)
And to head off the questions, this is not my company (no ownership), nor am I an employee.
http://jesse2012.com/f843attach.jpg
What is the deposit slip for? I dont understand this.. or how this piece works.. can you explain what was deposited and to where for how much and why? and how to use the stamp.. thanks in advance for your time.. have an awesome day! :cool:
IRS responses to demanding lawful money if any?
I am just curious if the IRS has come back to anyone who has applied the demanding lawful money process and disallowed the process? I have been doing the process for three years now and have success in two of those three years and have not gotten the refund check yet for 2012. I am just wondering what others in the group may have experienced in applying this process that have done it for more years.
Sometimes the IRS comes back after several years and disallows a process. Has anyone in the forum that has been doing the process had such contact from the IRS? I am not doubting the process, I am just wondering what others may have experienced? I am not very computer savy and I hope I am doing this right to get on the forum. Let me know if I am doing anything wrong. Thanks all, John Henry