IRS penalty for filing LLC return late, but I filed !

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IRS penalty for filing LLC return late, but I filed !

Martingale Kim
Member since 2020 · 28 posts · 3 votes

I got a letter  from IRS today, saying I didn't file 2019 tax return, and give me a penalty of $410. But I really filed by mail in March 2020.

I always filed each year's tax return by mail.

they give a contact us number but that number was never picked up. they ask me to pay the penalty by Aug 23.

What shall I do?

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Lynnette E.
Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
5y

Start by sending them a copy of your return you sent previously and a copy of the proof of delivery by FEDEX or USPS, or whoever delivered it.

Did you owe them, or they you?  If you owed them, did you pay?  If so, sending your proof of payment may help convince the IRS that you really did file.

Oh, and make sure it REALLY is the IRS and not some scammer using a non-IRS mail delivery.

BTW, they have tons for unprocessed tax returns, but they supposedly know what returns they have.

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  • Greg O'BrienBusiness Member
    Accountant · Boston, MA · Member since 2019 · 386 posts · 336 votes
    5y

    @Martingale Kim write a letter. Get receipt for delivery by deadline date. Continue to call. The IRS is in bad shape right now so it might take a while

    1Reply
  • Martingale Kim
    OP
    Member since 2020 · 28 posts · 3 votes
    5y
    Originally posted by @Greg O'Brien:

    @Martingale Kim write a letter. Get receipt for delivery by deadline date. Continue to call. The IRS is in bad shape right now so it might take a while

     I agree with your strategy, i should write a letter to ensure delivery, but where to write it?  IRS ask me to send money to Ogden, UT. so this one?
    attention to ? 

    0Reply
  • Michael Plante
    Deland, FL · Member since 2017 · 2k+ posts · 1k+ votes
    5y

    Pay the penalty 


    Next time file online so you have a record of filing 

    0Reply
  • Lynnette E.
    Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
    5y

    Start by sending them a copy of your return you sent previously and a copy of the proof of delivery by FEDEX or USPS, or whoever delivered it.

    Did you owe them, or they you?  If you owed them, did you pay?  If so, sending your proof of payment may help convince the IRS that you really did file.

    Oh, and make sure it REALLY is the IRS and not some scammer using a non-IRS mail delivery.

    BTW, they have tons for unprocessed tax returns, but they supposedly know what returns they have.

    1Reply
  • Greg O'BrienBusiness Member
    Accountant · Boston, MA · Member since 2019 · 386 posts · 336 votes
    5y

    @Martingale Kim contrary to these other responses, I would NOT pay (if it were my partnership penalty). We’ve gotten partnerships out of $20k penalty letters, its not very difficult, just a pain. If you timely filed you have nothing to worry about!

    Write to the service center listed on the letter and explain the facts. Id still try calling as we routinely get partnership late penalties waived through a phone call (hint: ask for First Time Penalty Abatement if they refuse to believe you filed on time) assuming this is the first issue for the partnership.

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  • Greg O'BrienBusiness Member
    Accountant · Boston, MA · Member since 2019 · 386 posts · 336 votes
    5y

    @Lynnette E. 19M or so returns! These notices have been quite common this year. Most in Texas or OK who filed after 5/15 (bc their deadline was 6/15) received erroneous letters as well.

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  • Lynnette E.
    Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
    5y
    Originally posted by @Greg O'Brien:

    @Lynnette E. 19M or so returns! These notices have been quite common this year. Most in Texas or OK who filed after 5/15 (bc their deadline was 6/15) received erroneous letters as well.

     They still have not processed mine from 2019!

    1Reply
  • Martingale Kim
    OP
    Member since 2020 · 28 posts · 3 votes
    5y
    Originally posted by @Lynnette E.:

    Start by sending them a copy of your return you sent previously and a copy of the proof of delivery by FEDEX or USPS, or whoever delivered it.

    Did you owe them, or they you?  If you owed them, did you pay?  If so, sending your proof of payment may help convince the IRS that you really did file.

    Oh, and make sure it REALLY is the IRS and not some scammer using a non-IRS mail delivery.

    BTW, they have tons for unprocessed tax returns, but they supposedly know what returns they have.

    i filed the return using regular usps mail, there's no activity at all so I don't owe them anything. I'm just so surprised that we have to use certified mail for everything we do everyday so to keep a proof?

    0Reply
  • Audrey X.
    Rental Property Investor · Atlanta, GA · Member since 2018 · 41 posts · 29 votes
    5y

    @Martingale Kim

    Have you called the 1800 number first thing in the morning? I got one of those letters too for my 2019 partnership return, I mailed timely but due to covid the paper return wasn't processed timely and the computer assumed it was filed late. I called the number early in the morning and got through to someone within 10 mins. I explained what happened and I had a copy of my mailing receipt. I always pay for certified mail with tracking, best $5 I will ever spend. The IRS rep asked that I fax the mailing receipt. She stayed on the phone with me and confirmed receipt and immediately waived it. If you don't have proof of mailing, you should still call and explain the situation. This is happening to a lot of people, they are aware and may just waive it as a first time late filing courtesy, especially if you have always filed on time. They can see that when they pull your tax EIN. Definitely call before you pay. In the future, always do certified mail or e-file through an accountant. Good luck.

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  • Lynnette E.
    Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
    5y
    Originally posted by @Martingale Kim:
    Originally posted by @Lynnette E.:

    Start by sending them a copy of your return you sent previously and a copy of the proof of delivery by FEDEX or USPS, or whoever delivered it.

    Did you owe them, or they you?  If you owed them, did you pay?  If so, sending your proof of payment may help convince the IRS that you really did file.

    Oh, and make sure it REALLY is the IRS and not some scammer using a non-IRS mail delivery.

    BTW, they have tons for unprocessed tax returns, but they supposedly know what returns they have.

    i filed the return using regular usps mail, there's no activity at all so I don't owe them anything. I'm just so surprised that we have to use certified mail for everything we do everyday so to keep a proof?

    If you do not do it electronically and use hard copies to mail, yes you should keep proof of mailing it on time.

    0Reply
  • Martingale Kim
    OP
    Member since 2020 · 28 posts · 3 votes
    5y

    i called them up early in the morning and realized the LLC federal filing deadline is March 15 not April 15.

    they were able to abate for me nevertheless.

    0Reply
  • Cody Lewis
    Investor · Charleston, SC · Member since 2021 · 263 posts · 122 votes
    5y

    When the IRS sends you a letter they usually include a 800 number. They're soooo backed up on opening mail that they likely will not get to any letter you write for several months. My wife and I had a similar experience with our personal taxes stating we owed $5k when they actually owed us $5k. We spent about 1.5 hours on the phone one morning and it was resolved.

    0Reply
  • Greg O'BrienBusiness Member
    Accountant · Boston, MA · Member since 2019 · 386 posts · 336 votes
    5y

    @Martingale Kim glad to hear! FTAs are a low bar so the agents can generally waive on the phone for you

    0Reply
  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    5y

    @Martingale Kim

    I would call the 1800 number listed on the letter and explain the situation.
    Explain to them that you filed timely and that you mailed it via USPS.
    If you have a certified mail receipt, kindly provide them that number.

    I would request an abatement of taxes.

    If you are working with a CPA, CPA's have a special tax practitioner hotline which they can communicate with the IRS faster.

    [email protected]917-280-8544
    Basit Siddiqi CPA4.979 Reviews
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