$141,854.73 Recovered From IRS in Claim for Refund Case
Taxpayer owed federal income taxes for tax years 2019 and 2020. Taxpayer was not able to fully pay their tax debt when it was due, causing accrual of substantial failure-to-pay penalties. Taxpayer eventually fully paid the tax debt but sought to recover a refund of the penalties paid. DeWitt Law represented Taxpayer before the IRS. DeWitt Law filed a claim for refund with the IRS, arguing that Taxpayer qualified for abatement of failure-to-pay penalties due to reasonable cause and COVID-related penalty relief under IRS Notice 2022-36. The IRS granted the claim and refunded the Taxpayer $141,854.73 in failure-to-pay penalties.