IRS CP162 letters - Spidell

IRS CP162 letters

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Message Board IRS CP162 letters

  • This topic has 5 replies, 4 voices, and was last updated 2 weeks, 5 days ago by William Dewberry.
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    • #260102
      Rick Kamp

      I have a client who filed their 2019 S Corp return, but got a penalty letters.   It seems that California is also sending out late filing penalties.     According to the IRS web site, it says in multiple places tax returns are due July 15, 2020.    For example:

      Talking with someone on the practitioner hotline, there seems to be some confusion.    The representative mentioned that this only applied to tax returns due April 15, 2020.    She is escalating this issue, but in the meantime we are getting these letters (I only had one client who did not meet this deadline due to being in quarantine.)

      Anyone else seeing this?

    • #260130
      Diane White

      Unfortunately the federal tax returns that were due on March 15, 2020 did not have their due dates automatically extended. An extension should have been filed for those returns not able to make the deadline. The IRS representative was correct regarding returns due April 15, 2020.

      CA did automatically extend the March returns.

    • #260241
      Rick Kamp

      The IRS web site disagrees with your opinion in multiple places.    The IRS agent from Practitioner Hotlines agrees that the site says the deadline for FORM 1120-S is July 15, 2020.     She is escalating the problem with her management.   There are multiple place where it says this:



    • #260354
      Mark Bole

      “The IRS web site disagrees with your opinion in multiple places.”

      You provided a link to only one place.  That link is not authority, or even a very good guide to due dates.

      Why not just use the First Time Abate method for cancelling this out?  Fast and easy (or at least would be if IRS was operating at full capacity).

      See the IRS Notice 2020-23 that has been previously discussed in the Spidell forum.  Not only does the Notice exclude returns that were due before Apr 1, but shouldn’t it?  Didn’t COVID Shelter In Place restrictions start no earlier than March 16?   See also the older, superseded Notice 2020-18 which was the subject of a FAQ at IRS web site on March 26.  This notice also did not include Form 1120-S or Form 1065 in the list of forms getting an extended due date.  These forms have never been announced officially by the IRS as having extended original due dates by default.

    • #260375
      William Dewberry

      A. Notice 2020-23 does not postpone any return filings that were due on March 16, 2020. If a fiscal year partnership or S-corporation has a return due to be filed on or after April 1, 2020, and before July 15, 2020, that filing requirement has been postponed to July 15, 2020. For information about additional relief that may be available to partnerships in connection with the CARES Act legislation, please see Rev. Proc. 2020-23 (PDF).

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