The Larrea Family Foundation

About

We respectfully request that the Foundation's quarterly estimated tax payments be treated as timely and request that no underpayment penalties be assessed because the payment delay was due to reasonable cause. Treasury Regulations SEC. 301.6651-1(c)(1) defines reasonable cause by asking whether the taxpayer exercised ordinary business care and prudence. The Foundation exercised care and prudence in seeking a reputable firm knowledgeable about exempt organizations to submit a payment in a timely fashion for Form 990-PF. The Foundation's administrator initially mailed a request to update the Foundation's name in the Internal Revenue Service's (the "Service") database in advance of the quarterly estimated tax deadlines. Unbeknownst to the Foundation, the name was updated, but the administrator did not enroll the Foundation in EFTPS to make its Q2 2023 quarterly payment until right before the deadline. Due to the timing, the administrator inadvertently missed making the required payment once enrolled. Form 2220 reports the quarterly estimated tax payments as made timely as if the error did not occur, since this was through no fault of the Foundation. The administrator has updated its policies and procedures to ensure that this will not occur in the future. According to the standards set forth in Rev. Proc. 92-85, we believe the Foundation's and its administrator's actions were reasonable and in good faith. The delay in submitting quarterly estimates was not in any way due to an intentional disregard of IRS rules but rather a clerical error. Therefore, we believe the Foundation is entitled to abatement of any penalty.

Focus Areas

Financial Trends

Grant Size Distribution

Based on 8 grants on record

Geographic Distribution

Grants Awarded (8 total)