Hmmm… The bill has passed but no action from IRS

All those ensnarled in 6707A mess anxiously waited for Congress to pass the legislation for the small business support. However, it has been a few months and IRS has not sent out revised assessments. Is there a motive behind this delay? If you’ve paid the penalties voluntarily or involuntarily, keep in mind – if you plan to appeal, your timer started from your first payment. Do not wait for the revised assessment for your appeal. If you want to get the whole thing behind you, you can patiently wait for IRS to get their act together, but keep in mind the interest meter is running. It would be prudent for you to pay the estimated penalties and stop the interest meter.

Following is an excerpt of information from the IRS:

“We are currently in the process of recalculating all assessed Section 6707A penalties in accordance with the amendment. We will partially abate any assessments made under the prior version of the statute that exceed the new penalty amount. Upon completion of our review, we will notify you of the new penalty amount and the amount of any partial abatement and refund to the extent allowed by law. It could take between a few weeks and a few months. (It will take some time, as we have to readjust approximately 1,000 assessments. To do so, we must obtain all of the closed case files and review those files and associated income tax files.) The collection suspension will remain in effect for each taxpayer’s account until the penalty is recalculated.”

6707a