Question

Tax Audit & Notice Services: IRS Assessments (2019)

3	For which of the following penalties should you consider requesting non-assertion during a mail audit?
	A.- Failure to file penalty.
	B.- Accuracy-related penalty.
	C.- Fraud penalty.
	D.- Failure to pay penalty.

Note: Question 3 - Option A.- Failure to file penalty. / Is not correct option - wrong

Answer 1

option B is correct

Penalty nonassertion means that the IRS not to charge penalties (assess) to your tax account. To qualify for nonassertion, you must have an explanation the IRS will accept as reasonable cause

You can send a letter with your tax return that explains why the return was filed late or why the balance due was not paid in full by due date. If the IRS accepts your explanation, penalties will not be charged to your account.

Times you may want to consider requesting penalty nonassertion include when you are filing a tax return after the due date and owe tax.

IRS penalty non assertion is typically granted when findings reveal that the taxpayer exercised ordinary business care and prudence even though unable to comply within a prescribed time frame.