Patrick M. Shannon - Page 8

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               I ask that you respond within the next 30 days to                      
               discuss the case, or set a time and date to discuss the                
               case * * *.  [Reproduced literally.]                                   
               On November 16, 2004, the Appeals officer held a telephonic            
          hearing with petitioner’s authorized representative.  By letter             
          dated November 16, 2004, the Appeals officer sent petitioner’s              
          authorized representative a copy of a transcript of the IRS’s               
          account with respect to petitioner’s taxable year 1999.                     
               On or about December 30, 2004, petitioner’s authorized                 
          representative sent the Appeals officer a letter (petitioner’s              
          December 30, 2004 letter).  That letter stated in pertinent part:           
               We are asking for abatement of penalties for this case                 
               due to reasonable cause, based upon consideration of                   
               the following facts.                                                   
               The main penalty that has been applied is the failure                  
               to file penalty under Section 6651(a)(1).  The original                
               return was filed by the October 15, 2000 extended due                  
               date.  However, the return was not signed by the tax-                  
               payer.  It is our understanding that the IRS has had a                 
               longstanding policy of waiving this penalty if the                     
               error is corrected.  In this case the error was indeed                 
               corrected when the taxpayer was notified of this over-                 
               sight.  Thus, we request that this penalty be abated,                  
               as the taxpayer moved to correct this error as quick as                
               possible once it was discovered.                                       
               Further, please note that the taxpayer suffered a                      
               relapse of his hydrocephalus during 1999 and spent most                
               of the last four months of 1999 hospitalized during                    
               which time he underwent multiple brain surgeries and                   
               had a shunt placed in his brain to reduce fluid pres-                  
               sure.  This condition rendered the taxpayer very much                  
               like an Alzheimer’s patient, unable to remember or care                
               for himself and very much at the mercy of the former                   
               CPA’s direction in this matter.                                        
               The other penalty charged in this case is the failure                  
               to pay penalty under Section 6651(a)(2).  As a first                   





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