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IRS Penalty Abatement – San Jose, CA

A Non-Profit located in San Jose, California hired Timberline to manage a liability of $38,000 due to the Internal Revenue Service.  The Enrolled Agent assigned to the case established a hold against collection action, allowing time to complete a financial analysis. An installment agreement was established to address the past due balance.  In addition, a Civil Penalty had been assessed against the business for failing to file Forms W2 and W3 for 2002.  After reviewing the client’s records, the Enrolled Agent was able to determine that there were two Employer Identification Numbers (EINs) established for the business by a prior accountant.  The Forms W2 and W3 had been submitted under the incorrect EIN.  The Enrolled Agent was successful in negotiating the removal of the penalty against the business along with all associated interest, resulting in savings of $6,380!

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