Hi
I have a client that under-reported income in both 04 & 05. The 04 amount not reported was large over $135,000 and the amount for 05 was under $20,000.
The situation is that he had a bookkeeper (not an EA or CPA) doing his books and preparing his tax returns. He never checked up on things and he signed whatever the bookkeeper told him to.
The amounts were put into the company, they were posted as owner investment instead of income.
The amount of penalty is almost $20,000 and they are charging him interest over $17,000.
Does anyone think that I have any hope in getting the numbers reduced? While the errors were technically his fault and all he can say is that he was stupid, but he is trying to fix things.
Any suggestions would be appreciated.
‘
Thanks,
Cris
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