Overview
ICW #4 – IRS Response Letter
Important Note: Please use the accompanying IRS Tax Notice (located In the ICW #4 Module) as the notice to which you will write your response letter.
You are a staff accountant for a local CPA firm, Meyers and Meyers, LLP. One of your clients,
Paula Evans contacted you in February of 2024 about a new partnership she formed with four
others. The partnership, Wildwood Acres Partnership, was started in the middle of 2022 and
reports on a calendar year basis (the tax year ends on December 31). Unfortunately, this was
a little late since the 2022 partnership return was due on April 15, 2023.
Paula provided the information and your office promptly prepared the return in late February,
2024. The transmittal letter to Paula included a paragraph warning her that the IRS would
probably assess penalties for late filing. Penalties for partnerships that file late are $195 per
partner, per month (or any part thereof).
On March 29, 2024, Paula called and said she received a late filing penalty notice assessing
$10,725. She faxed the notice to you for review. Based on your review, the assessed amount is
correct.
Facts regarding the partnership:
1. All five partners are individuals and US citizens.
2. All five partners timely filed their 2022 individual income tax returns in September 2023
and included their share of partnership taxable income.
3. All five partners are equal owners of the partnership
Paula wants you to respond to the IRS notice and request relief from the penalty.
ICW #4 requirement: Prepare a response letter to the IRS requesting abatement of the penalties based
on Rev. Proc. 84-35. Assume that your letter is written on letterhead from Meyers and Meyers LLP. Be sure and reference any attachments you would include with the response letter, even though you won’t be submitting the attachments on Turnitin.
Please sure to do it correctly.