2023-07-14T15:11:01-05:00 2022-08-31 942767324 SEEBA & ASSOCIATES INCCPAS 1825 HAMILTON AVE SAN JOSE CA 951255624 990 2021-09-01 237428762 CHURCH OF THE PIONEERS FOUNDATION CHUR 6503241365 1155 UNIVERSITY DRIVE BLDG 3 MENLO PARK CA 94025 BILL FRIMEL VP / CFO 6503241365 2023-07-14 1 BILL FRIMEL 999009999 GRANT E DOW CPA MST P01336347 4082647800 3 AAL1 IAL1 2021 2023-04-26 12:10:37Z BILL FRIMEL 1155 UNIVERSITY DRIVE BLDG 3 MENLO PARK CA 94025 3681846 0 X WWW.CHURCHOFTHEPIONEERS.ORG X 1975 CA TO SUPPORT THE MISSION AND PURPOSE OF OTHER PUBLICALLY-SUPPORTED RELIGIOUS ORGANIZATIONS. 10 10 1 14 0 0 1944383 790119 1342146 1683334 1284316 -1145822 0 118799 4570845 1446430 129500 180500 0 0 172712 201173 0 0 0 1266054 1473022 1568266 1854695 3002579 -408265 48587830 44942368 10283107 8315816 38304723 36626552 THE ORGANIZATION'S PURPOSE IS TO SUPPORT THE MISSION AND PURPOSE OF OTHER PUBLICALLY-SUPPORTED RELIGIOUS ORGANIZATIONS. 0 0 1640842 180500 417168 COPF MANAGED SUBSTANTIAL REAL ESTATE HOLDINGS AND TRUST ASSETS, INCLUDING THE FOLLOWING: 10 MANSES LEASED TO MINISTERS OF MENLO CHURCH; 1 MANSE LEASED COMMERCIALLY; 1 VACANT MANSE; 3 EDUCATIONAL FACILITIES LEASED FOR MINISTRY OF MENLO CHURCH; 2 FACILITIES LEASED COMMERCIALLY; TRUSTS AND SUPPORT FUNDS FOR CHURCH MULTI-SITES, MISSIONS AND GRADUATE PREACHING FELLOWSHIPS FOR CHRISTIAN SEMINARY GRADUATES; AND 16 CHARITABLE REMAINDER UNITRUSTS NAMING CHRISTIAN ORGANIZATIONS AS CHARITABLE REMAINDER INTERESTS. 1640842 1 1 0 0 0 0 0 0 1 0 1 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 X 10 10 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 0 1 0 0 0 X BILL FRIMEL 6503241365 1155 UNIVERSITY DRIVE BLDG 3 MENLO PARK CA 94025 LARRY LANGDON PRESIDENT 10.00 X X 0 0 0 BILL FRIMEL VICE PRESIDENT/CFO 40.00 X X 160000 0 30000 DAVID KIM VICE PRESIDENT 1.00 X X 0 0 0 BRYAN CAMERON TREASURER 1.00 X X 0 0 0 CAITLIN DRAKE DIRECTOR 1.00 X 0 0 0 PRESTON BUTCHER DIRECTOR 1.00 X 0 0 0 ANNE H ROSALES DIRECTOR 8.00 X 0 0 0 TOM CARHART DIRECTOR 2.00 X 0 0 0 CY COLBURN DIRECTOR 2.00 X 0 0 0 MARK MOSER SECRETARY 2.00 X X 0 0 0 160000 0 30000 1 0 1 0 0 790119 790119 RENTAL INCOME PROGRAM RELATED 900099 1683334 1683334 1683334 217483 217483 872111 850451 1384965 21660 -1384965 -1363305 -1384965 21660 PROPERTY TAX REFUND 900099 118799 118799 118799 1446430 417168 0 239143 180500 180500 190000 120000 70000 11173 8380 2793 4424 4424 75221 75221 23975 23975 477 477 16072 16072 717504 717504 101284 93837 7447 REPAIRS & MAINTENANCE 259007 259007 PROPERTY TAXES 241552 241552 MISCELLANEOUS EXPENSES 16702 3599 13103 PROPERTY MGMT EXP 16463 16463 341 341 1854695 1640842 213853 0 624978 1348714 69162 70766 34451364 8720292 25102556 25731072 4342203 4032638 18448931 13759178 48587830 44942368 8739 23903 123972 10266118 8149191 8250 18750 10283107 8315816 X 30296363 29915691 8008360 6710861 38304723 36626552 48587830 44942368 -408265 -1269906 0 X 0 0 0 X X X 8 MENLO PARK PRESBYTERIAN CHURCH 941167435 1 1 0 0 FULLER THEOLOGICAL SEMINARY 951699394 2 1 101000 0 MOUNT HERMON ASSOCIATION INC 946000955 1 1 40000 0 TRUETT SEMINARY BAYLOR UNIVERSITY 741159753 2 0 39500 0 CITYTEAM MINISTRIES 941501265 1 1 0 0 PARTNER'S INTERNATIONAL 941393427 1 1 0 0 YOUNG LIFE 840385934 1 1 0 0 BAYSHORE CHRISTIAN MINISTRIES 770151434 7 1 0 0 8 180500 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 PART IV, SECTION A, LINE 1: METHOD OF DESIGNATING SUPPORTED ORGANIZATIONS NOT LISTED IN GOVERNING DOCUMENTS, DESCRIPTION OF SUPPORTED CLASS, PLUS CONTINUING AND HISTORIC RELATIONSHIPS: THE ORGANIZATION'S MISSION IS "TO ACT EXCLUSIVELY IN CONNECTION WITH, AND TO ENGAGE IN ACTIVITIES FOR OR ON BEHALF OF, PUBLICLY-SUPPORTED RELIGIOUS ORGANIZATIONS". SUPPORTED ORGANIZATIONS DESCRIBED IN THE GOVERNING DOCUMENTS ARE: OAK GROVE CHRISTIAN MINISTRIES MENLO PARK PRESBYTERIAN CHURCH (DBA MENLO CHURCH) FULLER THEOLOGICAL SEMINARY MOUNT HERMON ASSOCIATION BAYSHORE CHRISTIAN MINISTRIES CITYTEAM MINISTRIES PARTNER'S INTERNATIONAL, AND YOUNG LIFE IN ADDITION, THE GOVERNING DOCUMENTS ALSO PROVIDE THAT "THE DIRECTORS OF THE ORGANIZATION MAY DESIGNATE SUPPORTED ORGANIZATIONS FROM A CLASS OF PUBLICALY-SUPPORTED ORGANIZATIONS WHICH SUPPORT CHRIST-CENTERED MINISTRIES AND MISSIONS, WHICH HAVE SUBSTANTIAL IDENTITY OF INTERESTS AND ESTABLISH A CONTINUING RELATIONSHIP WITH THIS CORPORATION". THE ORGANIZATION'S DIRECTORS ESTABLISHED A RELATIONSHIP WITH TRUETT THEOLOGICAL SEMINARY AND PROVIDED IT A GRANT THIS YEAR. PART IV, SECTION C, LINE 1: TO BECOME A DIRECTOR OF THIS ORGANIZATION, A PERSON MUST BE A CURRENT OR FORMER OFFICER OR DIRECTOR OF ONE OF THE SUPPORTED ORGANIZATIONS. OF THIS ORGANIZATION'S 12 BOARD MEMBERS DURING THE 2020-2021 FISCAL YEAR: A. ONE DIRECTOR WAS A CURRENT SESSION MEMBER OF MENLO PARK PRESBYTERIAN CHURCH ("MENLO CHURCH") AND EIGHT OTHER DIRECTORS WERE FORMER SESSION MEMBERS. B. ONE DIRECTOR IS A FORMER EXECUTIVE OF THE MT. HERMON ASSOCIATION AND ONE OTHER DIRECTOR WAS A FORMER BOARD MEMBER. C. ONE DIRECTOR WAS A FORMER BOARD MEMBER OF BAYSHORE CHRISTIAN MINISTRIES. D. ONE DIRECTOR IS A CURRENT BOARD MEMBER OF FULLER THEOLOGICAL SEMINARY. E. ONE DIRECTOR WAS A CURRENT BOARD MEMBER OF OAK GROVE CHRISTIAN MINISTRIES. THE ORGANIZATION ALSO INVITES CERTAIN OTHER KEY MENLO CHURCH EXECUTIVES AND DIRECTORS TO ATTEND THE BOARD MEETINGS TO PROVIDE INPUT. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 X 15403057 15403057 19048307 8720292 10328015 25731072 TRUST ASSETS 11142281 PROPERTY HELD FOR SALE 1000 NOTES RECEIVABLE 2493316 PROPERTY TAX RECEIVABLES 122581 13759178 SECURITY DEPOSITS 18750 18750 1130920 -1269906 954396 -315510 1446430 0 1446430 2809091 954396 954396 1854695 0 1854695 PART IV, LINE 2B: CHURCH OF THE PIONEERS FOUNDATION IS THE TRUSTEE FOR 16 SPLIT-INTEREST TRUSTS. THE ASSETS TOTAL $11,142,281 AT YEAR END. THE CORRESPONDING LIABILITY TO THE INCOME BENFICIARIES AND OTHER CHARITABLE REMAINDER BENEFICIARIES TOTALLED $8,149,191 AT YEAR END. PART XII, LINE 2D - OTHER ADJUSTMENTS: FAIR RENTAL VALUE OF REAL ESTATE INCLUDED AS GRANT EXPENSE. 1 TRUETT SEMINARY BAYLOR UNIVERSITY ONE BEAR PLACE 97026 WACO TX 76798 741159753 501(C)(3) 39500 0 PREACHING FELLOWSHIP GRANT FULLER THEOLOGICAL SEMINARY 135 N OAKLAND ROAD PASADENA CA 91182 951699394 501(C)(3) 101000 0 PREACHING FELLOWSHIP GRANT MOUNT HERMON PO BOX 413 MOUNT HERMON CA 95041 946000955 501(C)(3) 40000 0 GENERAL SUPPORTGENERAL SUPPORT PART I, LINE 2: GRANTS ARE REVIEWED AND APPROVED BY THE BOARD MEMBERS AND ALL GRANTS ARE RECORDED IN THE BOOKS AND RECORDS OF THE ORGANIZATION. X 0 0 0 0 0 0 0 0 0 BILL FRIMEL VICE PRESIDENT/CFO 160000 0 0 0 0 0 0 0 30000 0 190000 0 0 0 FORM 990, PART VI, SECTION B, LINE 11B A DRAFT OF THE TAX RETURN IS REVIEWED BY THOSE ON THE BOARD OF DIRECTORS WHO ARE CHARGED WITH FINANCIAL MANAGEMENT OF THE ORGANIZATION. A COMPLETE COPY OF THE RETURN IS PROVIDED TO ALL BOARD MEMBERS AT THE TIME IT IS FILED. FORM 990, PART VI, SECTION B, LINE 12C IN CONNECTION WITH ANY ACTUAL OR POSSIBLE CONFLICT OF INTEREST, AN INTERESTED PERSON MUST DISCLOSE THE EXISTENCE OF THE FINANCIAL INTEREST AND BE GIVEN THE OPPORTUNITY TO DISCLOSE ALL MATERIAL FACTS TO THE DIRECTORS OR MEMBERS OF COMMITTEES OF THE COPF BOARD CONSIDERING THE PROPOSED TRANSACTION OR ARRANGEMENT. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, EXEMPTION APPLICATION, FINANCIAL STATEMENTS AND TAX RETURNS AVAILABLE TO THE GENERAL PUBLIC UPON REQUEST. THOSE WISHING TO SEE THE GOVERNING DOCUMENTS CAN CONTACT THE ORGANIZATION. MENLO PARK PRESBYTERIAN CHURCH 950 SANTA CRUZ AVENUE MENLO PARK CA 94025 941167435 CHURCH CA 501(C)(3) LINE 1 N/A 0 FULLER THEOLOGICAL SEMINARY 135 N OAKLAND AVENUE PASADENA CA 91182 951699394 SEMINARY CA 501(C)(3) LINE 2 N/A 0 MOUNT HERMON ASSOCIATION INC PO BOX 413 MOUNT HERMON CA 95041 946000955 CHURCH CA 501(C)(3) LINE 1 N/A 0 TRUETT SEMINARY BAYLOR UNIVERSITY ONE BEAR PLACE 97026 WACO TX 76798 741559753 SEMINARY TX 501(C)(3) LINE 2 N/A 0 0 1 0 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 0 DEAR SERVICE CENTER REPRESENTATIVE,I AM REQUESTING REASONABLE CAUSE PENALTY ABATEMENT ON BEHALF OF OUR CLIENT CHURCH OF THE PIONEER FOUNDATION. A SIGNED FORM 2848 AUTHORIZING ME TO REPRESENT THE FOUNDATION REGARDING THIS MATTER HAS BEEN RECEVIED BY IRS.THE FOUNDATION AND ITS TAX PREPARER SEEBA AND ASSOCIATES, INC BELIEVE THEY HAVE IDENTIFIED THE REASONS FOR THE DELINQUENCY AND HAVE PUT SIGNIFICANT POSITIVE MEASURES IN PLACE TO PREVENT FUTURE INSTANCES OF LATE FILING. FURTHER, BOTH BELIEVE THEY CAN SHOW REASONABLE CAUSE FOR THE LATE FILING.FACTS AND CIRCUMSTANCES:THE 2021 FORM 990 WAS DUE JANUARY 16, 2023. SINCE 1985, THE FOUNDATION HAS CONTRACTED WITH SEEBA AND ASSOCIATES, CPAS TO PREPARE AND FILE ITS RETURNS, AUDIT ITS FINANCIAL STATEMENTS AND PROVIDE OTHER CONSULTING SERVICES. IT IS THE NORMAL PRACTICE FOR SEEBA AND ASSOCIATES TO FILE A REQUEST FOR AN EXTENSION OF TIME TO FILE WHEN NEEDED. IN THIS INSTANCE, THE EXTENSION WAS INADVERTENTLY OVERLOOKED DUE TO AN ERROR IN THE TRACKING SHEET USED TO TRACK DUE DATES FOR CLIENT TAX RETURNS.IT WAS NOTED ON JULY 11TH, DURING WORKING ON THE 2021 TAX RETURN, THAT THE FOUNDATIONS 990 RETURN HAD NOT BEEN EXTENDED TO JULY 17, 2023. BECAUSE IT WAS NOT EXTENDED AND NOT FILED YET, THIS ABATEMENT REQUEST IS BEING INCLUDED AS AN ATTACHMENT TO THE 2021 RETURN INSTEAD OF WAITING TO BE NOTIFIED BY THE IRS THAT THE RETURN HAD NOT BEEN FILED IN A TIMELY MANNER.CHURCH OF THE PIONEER FOUNDATIONS FILING HISTORY:THE CHURCH OF THE PIONEER FOUNDATION HAS BEEN FILING FORM 990 AS REQUIRED SINCE 1975 AND HAS MAINTAINED AN EXCELLENT HISTORY OF TIMELY FILING. IN NO WAY HAS THE FOUNDATION DEMONSTRATED ANY TYPE OF PATTERN OF NEGLECT OR WILLFUL DISREGARD. THE FOUNDATIONS FILING HISTORY IS A SIGNIFICANT MITIGATING FACTOR UNDER TREASURY REGULATION SECTION 301.6724-1(B)(2) WHEN EVALUATING AND DEFINING REASONABLE CAUSE UNDER TREASURY REGULATION SECTION 301.6724-1(A)(2)(I).AUTHORITY FOR PENALTIES FOR LATE-FILING:PENALTIES FOR LATE FILING OF FORM 990 ARE IMPOSED UNDER IRC SECTION 6652(C)(1)(A)(I). HOWEVER, PARAGRAPH 5 OF SUBSECTION (C) UNDER SECTION 6652 PROVIDES THAT NO PENALTY SHALL BE IMPOSED UNDER THIS SUBSECTION WITH RESPECT TO ANY FAILURE IF IT IS SHOWN THAT SUCH FAILURE IS DUE TO REASONABLE CAUSE.REASONABLE CAUSE ABATEMENT PROVISION: IRS REGULATION 301.6724-1 STATES THAT THE PENALTY FOR A FAILURE RELATING TO A REPORTING REQUIREMENT IS WAIVED IF THE FAILURE IS DUE TO REASONABLE CAUSE. REASONABLE CAUSE MAY BE DEMONSTRATED IF THE FAILURE AROSE FROM EVENTS BEYOND THE FILERS CONTROL (IMPEDIMENT TO FILING) OR IF THE FILER ESTABLISHES THAT THERE ARE SIGNIFICANT MITIGATING FACTORS WITH RESPECT TO THE FAILURE AND THAT THE FILER ACTED IN A RESPONSIBLE MANNER BY EXERCISING REASONABLE CARE. REASONABLE CARE IS THAT STANDARD OF CARE THAT A REASONABLY PRUDENT PERSON WOULD USE UNDER THE CIRCUMSTANCES IN THE COURSE OF ITS BUSINESS IN DETERMINING ITS FILING OBLIGATIONS AND IN HANDLING ACCOUNT INFORMATION SUCH AS ACCOUNT NUMBERS AND BALANCES. THE STANDARD OF REASONABLE CARE ALSO DEMANDS THAT THE FILERUNDERTAKE SIGNIFICANT STEPS TO AVOID OR MITIGATE THE FAILURE.IDENTIFYING THE REASONS FOR THE DELINQUENT FILINGS:THE REGULATIONS INDICATE THAT ACTING IN A RESPONSIBLE MANNER INCLUDES RECTIFYING THE FAILURE AS SOON AS IT IS DISCOVERED. THIS REFLECTS THE UNDERSTANDING THAT A PROBLEM CANNOT BE FIXED UNTIL IT IS DISCOVERED.THE CHURCH OF THE PIONEER FOUNDATION REASONABLY BELIEVED, IN GOOD FAITH, THAT A TIMELY EXTENSION HAD BEEN FILED BY SEEBA AND ASSOCIATES, INC, AS IS THE NORMAL PRACTICE. THE FOUNDATION DID NOT HAVE KNOWLEDGE THAT THEIR RETURN WAS DELINQUENT UNTIL NOTIFIED OF THE OVERSIGHT WHEN DISCOVERED BY SEEBA AND ASSOCIATES, INC.GOING FORWARD, SEEBA AND ASSOCIATES, INC. WILL NOT ONLY USE ITS TRACKING SHEET BUT ALSO HAS SET UP YEARLY JANUARY 10TH REMINDER IN CALENDAR PROGRAM TO EMAIL A COPY OF THE IRS EXTENSION ACCEPTANCE TO THE CFO OF CHURCH OF THE PIONEER FOUNDATION IF THE RETURN HAS NOT ALREADY BEEN FILED. IN ADDITION MULTIPLE STAFF MEMBERS WILL BE TRACKING DUE DATES. SEEBA AND ASSOCIATES HAS BEEN IN BUSINESS FOR MANY YEARS AND HAS FILED THOUSANDS OF TAX RETURNS FOR CLIENTS ERROR-FREE AND ON TIME. IT HAS NO INCENTIVE OR REASON TO MISS DEADLINES AND MAKES EVERY EFFORT TO FILE ITS CLIENTS RETURNS ON TIME.DISCOVERY AND CORRECTION OF THE 2021 FILING DELINQUENCY:AS NOTED BEFORE, SEEBA AND ASSOCIATES, INC. DISCOVERED ON JULY 11, 2023 DURING THE PREPARATION OF THE FOUNDATIONS 2021 990 RETURN. DUE JANUARY 16, 2023, THAT THE RETURN HAD NOT BEEN EXTENDED AS BELIEVED. SEEBA AND ASSOCIATES, INC. TOOK THE NECESSARY EFFORTS TO COMPLETE AND E-FILE THE 2021 AS SOON AS POSSIBLE AFTER DISCOVERING THE ERROR, AND BEFORE BEING NOTIFIED BY THE IRS THAT THE RETURN HAD NOT BEEN FILED.SIGNIFICANT MITIGATING FACTORS:AS PROVIDED IN TREASURY REGULATION 301.6724-1, WE BELIEVE THE FOLLOWING SIGNIFICANT MITIGATING FACTORS ARE EVIDENCE OF REASONABLE CAUSE:- THE CHURCH OF THE PIONEER FOUNDATION HAS A LONG AND EXCELLENT HISTORY OF TIMELY FILING THEIR RETURNS.- SEEBA AND ASSOCIATES, INC. HAS PROVIDED THE FOUNDATION WITH EXCELLENT SERVICE AND TIMELY FILING FOR MANY YEARS.RESPONSIBLE ACTIONS AND REASONABLE CARE:AS PROVIDED IN TREASURY REGULATION 301.6724-1, WE BELIEVE THE FOLLOWING ARE EVIDENCE THAT THE FOUNDATION AND SEEBA AND ASSOCIATES, INC. ACTED RESPONSIBLY AND EXERCISED REASONABLE CARE:- THE FOUNDATION CLEARLY MADE AN EFFORT EVERY YEAR TO ENGAGE THE SERVICES OF A COMPETENTPROFESSIONAL AND MADE REASONABLE EFFORTS TO FILE TIMELY EACH YEAR.- AS SOON AS IT WAS DISCOVERED THAT THE 2021 RETURN WAS PAST THE DUE DATE AND THAT A REQUESTFOR AN EXTENSION OF TIME TO FILE HAD NOT BEEN TIMELY FILED, THE RETURN WAS PREPARED ANDFILED WITHIN APPROXIMATELY ONE WEEK IN AN EFFORT TO MITIGATE THE DELINQUENCY.- THE DELINQUENT RETURN WAS FILED BEFORE RECEIVING ANY NOTIFICATION FROM THE IRS.- MEASURES HAVE BEEN PUT IN PLACE TO BE SURE NO SUCH LATE FILINGS HAPPEN IN THE FUTURE (SEE THE EXPLANATION BELOW).- CHURCH OF THE PIONEER FOUNDATION IS CURRENT ON ALL OF ITS TAX FILINGS.MEASURES TO PREVENT FUTURE DELINQUENCIES:THE FOUNDATION UNDERSTANDS THAT THE ULTIMATE RESPONSIBILITY FOR FILING ITS RETURNS LIES WITH THE FOUNDATION AND ITS BOARD AND MANAGERS, AND THAT THE FILING RESPONSIBILITY CANNOT BE TRANSFERRED TO SEEBA AND ASSOCIATES, INC. OR TO ANY OTHER AGENT. IN THAT REGARD IT HAS DECIDED TO TAKE WHAT IT BELIEVES WILL BE FOOLPROOF STEPS TO AVOID ANY FUTURE DELINQUENCIES. IT ALSO UNDERSTANDS THAT THREE CONSECUTIVE DELINQUENCIES WOULD RESULT IN THE LOSS OF ITS TAX-EXEMPT STATUS.TO THAT END, THE FOUNDATIONS CFO WILL ADD REMINDERS TO THEIR CALENDAR MONITORING OF FORM 990 DUE DATES, THE TIMELY FILING OF EXTENSION REQUESTS WHEN APPROPRIATE. IN ADDITION, THE CFO WILL VERIFY THAT NECESSARY EXTENSIONS ARE FILED BY RECEIVING EXTENSION ACCEPTANCE FROM IRS FROM SEEBA AND ASSOCIATES, INC. PRIOR TO THE DUE DATE.SEEBA AND ASSOCIATES, INC. HAS ALSO UPDATED ITS DUE-DATE REMINDER SYSTEM TO INCLUDE MULTIPLE STAFF MEMBERS TRACKING DUE DATES, AUTOMATED CALENDAR REMINDERS OF DUE DATES AND EXTRA STEP OF SENDING COPIES OF EXTENSION ACCEPTANCES TO CLIENTS FOR ADDITIONAL ACCOUNTABILITY. THIS IS IN ADDITION TO SPREADSHEET TRACKING SYSTEM ALREADY IN PLACE.ABSENCE OF WILLFUL NEGLECT: IN ADDITION TO REASONABLE CAUSE, THE ABSENCE OF WILLFUL NEGLECT" IS MENTIONED IN SEVERAL PLACES IN THE CODE AND IN THE INTERNAL REVENUE MANUAL AS ONE FACTOR TO CONSIDER IN DETERMINING IF ABATEMENT OF PENALTIES IS APPROPRIATE.WILLFUL NEGLECT MAY BE UNDERSTOOD AS MEANING A CONSCIOUS, INTENTIONAL FAILURE OR RECKLESS INDIFFERENCE." ACCORDING TO THE U.S. SUPREME COURT IN CHURCH OF THE HOLY TRINITY V. U.S. 143 U.S. 457: IN COMMON PARLANCE, WILLFUL IS USED IN THE SENSE OF INTENTIONAL AS DISTINGUISHED FROM ACCIDENTAL OR INVOLUNTARY. WHATEVER ONE DOES INTENTIONALLY, HE DOES WILLFULLY. ACCORDING TO THE U.S. COURT OF APPEALS, 8TH CIRCUIT, U.S. V JACK C. RIFEN, WILLFULNESS IS AN INTENTIONAL VIOLATION OF A KNOWN LEGAL DUTY.BASED ON THE FACTS AND CIRCUMSTANCES PRESENTED HEREIN, IT IS CLEAR THAT THERE WAS NO INTENTIONAL VIOLATION OF A KNOWN LEGAL DUTY; THEREFORE WILLFUL NEGLECT COULD NOT HAVE BEEN A FACTOR CONTRIBUTING TO THE DELINQUENCIES.REQUEST FOR ABATEMENT OF PENALTIES:BASED ON THE FOUNDATIONS DEMONSTRATION OF THE EXISTENCE OF SIGNIFICANT MITIGATING FACTORS WITH RESPECT TO THE FAILURES, AND THAT IT ACTED RESPONSIBLY AND WITHOUT WILLFUL NEGLECT WITH RESPECT TO ITS FILING OBLIGATIONS, AND THAT IT HAS PUT POLICIES AND PROCEDURES IN PLACE THAT IT IS SURE WILL PREVENT FUTURE DELINQUENCIES, WE RESPECTFULLY REQUEST THAT THE IRS ABATE ALL ASSESSED PENALTIES AND INTERESTUNDER THE REASONABLE CAUSE PROVISIONS OF IRC SECTION 6652(C)(5).THANK YOU FOR CONSIDERING OUR REQUEST.UNDER PENALTIES OF PERJURY, I DECLARE THAT THE FACTS PRESENTED HERE ARE, TO THE BEST OF MY KNOWLEDGE AND BELIEF, TRUE, CORRECT, AND COMPLETE. GRANT DOW, CPA, MST