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Notice of Penalty
Hello, I have been using Marks methodology on minimizing tax in the US and I’m Looking for some direction regarding a notice of penalty from the IRS. Back in May, I received a letter stating that I had filed a purported tax return that claimed one or more frivolous positions and that I needed to correct my tax return. In response, I made what I thought were the necessary corrections and resent the tax form along with a letter explaining the updates along with my notarized declaration.
Now in December I’ve received a notice dated 12/2/24 (which I received on 12/7/24) assessing a $5,000 penalty. The notice states that I must pay the penalty by 12/23/24 and indicates that even if I wish to contest the penalty, I am required to pay the $5,000 upfront and then file a claim afterward to request a refund if my challenge is approved.
I’m seeking guidance on how to handle this situation. How can I effectively contest this penalty and hold my position without immediately paying the $5,000? Any insight or direction would be greatly appreciated. Also I’ve taken the minimizing tax module however if there are any further recommendations for other modules that might address this on the website that might help me I am open to suggestions.
Has anyone else experienced a similar situation with the ATO?
For reference I’m attaching a copy of the letter.
Thank you for your time and consideration.