Tax Court Ruling: When You Can’t Take the IRS at Its Word

Summary:IRS Rules & Abatements : The IRS imposes interest on unpaid taxes, but taxpayers can request an interest abatement using Form 843 if the IRS caused unreasonable delays or errors. : The IRS imposes interest on unpaid taxes, but taxpayers can request an interest abatement using Form 843 if the IRS caused unreasonable delays or errors. Tax Court Decision : The court rejected the request, ruling that taxpayers failed to prove an IRS error or delay and that verbal advice from an IRS representative is not legally binding. : The court rejected the request, ruling that taxpayers failed to prove an IRS error or delay and that verbal advice from an IRS representative is not legally binding. Facts of the new case: A married couple, owners of two S corporations in the dental care field, filed timely income tax returns for the 2020 tax year.