Discussion:Abate interest on failed involuntary conversion

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Revision as of 17:09, 29 May 2009

Discussion Forum Index --> Basic Tax Questions --> Abate interest on failed involuntary conversion
Discussion Forum Index --> Tax Questions --> Abate interest on failed involuntary conversion

Snooks (talk|edits) said:

29 May 2009
I have a client that deferred gain on an Involuntary Conversion of a business asset, thinking that he would replace the asset and get back into business. The involuntary conversion was the result of a tragic accident that left emotional scares, leaving the client in emotional turmiol. After the two year deferral the client simply could not bring himself to get back into the business. I therefore amended the return with the deferred gain and had the client pay the tax. Now the IRS wants interest on the taxes and it is sizable. Is there any known possible reason that the IRS would accept to abate the interest?
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