By Steven D. Mercatante, Esq.
 
 
In past articles we have examined a variety of mistakes often made in processing IRS Form 972-CG; otherwise known as the “Proposed Penalty Notice”. In this final part of our introductory Proposed Penalty Notice processing basics series we will explore the most important weapon in your arsenal if you receive a Form 972-CG - the waiver request letter. If you receive a Form 972-CG in the mail the proper response is to write a waiver request letter and request that any Form 1099 penalties be abated to zero. Before you start writing your letter however, please note when you received your proposed penalty notice. The date of receipt is important because you MUST make sure you send your waiver request letter, with supporting documentation, to the IRS within 45 calendar days.
 
Ok, now that you know your deadline, it is time to begin collecting supporting documents and writing your letter. The waiver request letter’s purpose is to prove to the IRS that you know the law and follow the law; thus, your proposed penalty should be abated. The best means for you to prove your knowledge and compliance with the law is...