IRS Notice CP15 - Frivolous Penalty Charge | CP15 Letter from the IRS (Golding & Golding)

IRS Notice CP15 – Frivolous Penalty Charge | CP15 Letter from the IRS (Golding & Golding)

 IRS Notice CP15 – Frivolous Penalty Charge | CP15 Letter from the IRS

Not all IRS penalties are created equal. Some penalties are not so bad, while others can be devastating (such as the willful FBAR Penalty).

Unfortunately, the CP15 notice of penalty charge is bad news.

Unlike other types of penalty notices you may receive, the notice of penalty CP15 means the IRS believes that you filed (or didn’t file) tax or informational returns, and that the the non-filing was frivolous.

Since the IRS deems the matter “frivolous” these types of penalties for non-filed tax returns or other informational returns can be bad.

IRS Notice CP15

The term frivolous is a bad word when it comes to taxes.

Why?

Because the term frivolous presumes that you did something knowingly or recklessly in order to avoid tax or reporting. As a result, the IRS is going to “penalize you first, and ask questions later.”

What Can You Do about a CP15 Notice?

The most important thing you can do, is to act timely in responding to the letter.

Generally, you will receive 10-days to respond. It may be a bit of an uphill battle to try to get this type of penalty removed, but not impossible.

You may need to make a FOIA (Freedom of Information Act) request in order to get information about your file (in high school, this would be equivalent to your “permanent record.”) In addition, you may seek to file a Collection Due Process Hearing request (CDP) or other appeal/hearing request.

Alternatively, you can submit payment of the penalty (to avoid late fees and interest from accruing), and then sue the IRS in federal court.

Out of Compliance BEFORE a Penalty was Issued?

If you are out of compliance before an IRS penalty was issued, you may consider entering one of the approved IRS Tax Amnesty programs to try to avoid a penalty being issued.

Golding & Golding, A PLC

We have successfully represented clients in more than 1,000 streamlined and voluntary disclosure submissions nationwide and in over 70-different countries.

We are the “go-to” firm for other Attorneys, CPAs, Enrolled Agents, Accountants, and Financial Professionals across the globe.

Golding and Golding, Board-Certified Tax Law Specialist

Golding and Golding, Board-Certified Tax Law Specialist

Golding & Golding: Our international tax lawyers practice exclusively in the area of IRS Offshore & Voluntary Disclosure. We represent clients in 70+ different countries. Managing Partner Sean M. Golding is a Board-Certified Tax Law Specialist Attorney (a designation earned by < 1% of attorneys nationwide.). He leads a full-service offshore disclosure & tax law firm. Sean and his team have represented thousands of clients nationwide & worldwide in all aspects of IRS offshore & voluntary disclosure and compliance during his 20-year career as an Attorney.

Sean holds a Master's in Tax Law from one of the top Tax LL.M. programs in the country at the University of Denver. He has also earned the prestigious IRS Enrolled Agent credential. Mr. Golding's articles have been referenced in such publications as the Washington Post, Forbes, Nolo, and various Law Journals nationwide.
Golding and Golding, Board-Certified Tax Law Specialist

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