AaBbCcDdEe AaBbCcDdte No Spacing AaBbCcD AaBbCcDdE Aal Heading 1 Heading 2 v Av Normal 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 2020 about a new partnership she formed with four others. The partnership, Wildwood Acres Partnership, was started in the middle of 2018 and reports on a calendar year basis (the tax year ends on December 31). Unfortunately, Paula contacted you a little late since the 2018 partnership return was due on April 15, 2019. Paula provided the information and your office promptly prepared the return in late February, 2020. 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, 2020, Paula called and said she received a late filing penalty notice assessing $10.725. She faxed the notice to you for review (a copy is available on Blackboard in the ICW #8 folder). Based on your review, the assessed amount is calculated correctly. Facts regarding the partnership: 1. All five partners are individuals and US citizens. 2. All five partners timely filed their 2018 individual income tax returns in 2019 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. Assignment: Prepare a response letter to the IRS requesting abatement of the penalties based on Rev. Proc. 84-35. Be sure and reference any attachments you would include with the response letter, even though you won't be submitting the attachments on Turnitin. Upload your word or pdf file using Turnitin on Blackboard. No late submissions! We Charged a Penalty on Your Partnership Tax Return Why You are Getting This Notice We charged a penalty under Internal Revenue Code Section 6698 (a) (1) because, according to our records, you filed your partnership return late. How We Calculated the Amount You Owe The penalty is $195 for each person who was a partner at any time during the tax year, for each month or part of a month the return was late, for up to 12 months. Number of Partners Late Filing Penalty Total Penalty $10,725.00 $10,725.00 Less Penalty Paid 5.00 Total Amount You Owe $10,725.00 Subtract Payments We Have Not Included Pay the Adjusted Amount Due