IRS late filing penalties on entities that filed extension by mail - Spidell

IRS late filing penalties on entities that filed extension by mail

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Message Board IRS late filing penalties on entities that filed extension by mail

  • This topic has 3 replies, 3 voices, and was last updated 1 week, 6 days ago by Steven Yukelson.
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    • #265584
      Don Watson
      Participant

      Are clients getting letters from the IRS charging late filing penalties on 2019 partnership and LLC tax returns where the extensions were timely filed by mail?

    • #265589
      Diane White
      Participant

      Clients are receiving late filing penalties on those extensions. The problem stems from the fact the IRS was not processing anything sent via mail i.e. extensions, POAs, tax returns, correspondence, etc. It is my understanding they are beginning to process things now. A letter with proof of filing the extension may resolve the penalty issue but be patient.

    • #266015
      Don Watson
      Participant

      Thank you Diane – I thought that was the problem too. I”m surprised the IRS hasn’t stopped their computer from sending those notices.

    • #266039
      Steven Yukelson
      Participant

      IRS has a First-Time Penalty Abatement Waiver policy that may also be used if all the criteria are met. It applies to individual income tax returns and to certain business returns, including partnership tax returns.
      [Internal Revenue Manual Section 20.1.1.3.3.2.1]

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