My client received CP2000 stating that there was some dividends and securities that were not reported on the 2022 taxes filed.  Once reviewed, the IRS was correct but the proposed tax increase did not reflect the basis of the securities.  Therefore, I believe that the interest and the understatement penalty should be reduced from what they assessed.

The client sent in payment for the taxes due, along with an amendment and backup documentation.

My question is should the assessed interest and penalties shown on the CP2000 have been remitted as well or hold off and ask for abatement of the penalties and figure what the interest should be and send in that payment.