Arguing Your Case in the Event of an IRS Penalty Notice

If your organization is the recipient of a proposed penalty notice from the IRS, there are steps you can take to argue that you have reasonable cause for the errors. The IRS mails proposed penalty notices, Notice 972CG, in August. The notice relates to the Forms 1099 filed the previous calendar year for payments made in the prior tax year. For example, a Notice 972CG mailed in August 2023, relates to Forms 1099 filed in 2022 for tax year 2021. Rather than paying the penalty, the best strategy…