IRS Form 990 Penalty Help

Has your nonprofit organization received a penalty notice from the IRS for late filing of Form 990, or Form 990-EZ? Don't pay it yet! If you feel there was a good reason that you were late (perhaps you didn't know you had to file) you should first convince the IRS that you had "reasonable cause," and that the penalties should be removed.

I Can Help

I have a lot of experience in working with nonprofits that have received penalty notices and I have a very high rate of success (100% so far) at having the penalties removed. Unless you willfully neglected your filing responsibility, you should not have to pay the penalty. I can write a proper "reasonable cause" letter to the IRS on your behalf requesting that penalties be abated (removed).

I do not advise calling the IRS or faxing a response to them to request abatement. (However, if you are approaching the due date by which the IRS says you must respond, you should call the IRS and ask for more time. They'll usually grant an additional 8 or 9 weeks). A well-written logical argument sent certified mail gets much better results. If you have a simple situation and are a good writer, you may be able to just explain that you are a new nonprofit and never had to file before and you just didn't know you had to file and you'll never be late again, and this may work.

If your situation is a bit more complex, or if the penalties are particularly large, and you are just not comfortable writing a letter to the IRS, send me an email and explain your situation to me and I'll determine if I can help you.

Request a phone consultation with David McRee, CPA.

My Fees to Write a Letter to the IRS

My fees for writing a penalty abatement request letter depend entirely on the complexity of the situation and how cooperative you are in providing me with the necessary facts and details. Generally my fees would be in the $300 to $500 range. Well worth it if you are facing a $4,000 penalty or more. (Recently I helped a charity get complete relief from a $20,000 penalty assessment.)

Do-It-Yourself IRS Penalty Relief

If you'd like to write your own letter, but aren't sure how to make the best argument on your behalf, consider purchasing my "Penalty Relief Manual" on how to write a reasonable cause penalty abatement request letter. It tells you everything you need to know to have the best possible chance of success.