Only the IRS can tell you if they will waive a penalty or not. There is a formal way of applying for one. But if you purchased Audit Defense, then you need to be guided on all this by the folks at Audit Defense, whom you should contact ASAP using the FAQ I left above. Penalties and interests will continue to accrue until resolved, and your IRS letter may have given you a deadline to respond. You can ask the folks at Audit Defense about the chances ot abating any penalty, since these are the sorts of things they work with every day.
As for problems with reporting the sales of your RSU's, I'll see if someone familiar with RSU's wants to comment in that regard in this thread.
@TomD8 I think you've answered some questions about RSU's before. Do you have any suggestions for user in figuring out why his RSU's were not reported correctly? Thanks.
