2014 Tax Error - Interest and Penalty

[RobbieB]

I've been careless a couple of times and misplaced a 1099. For twelve dollars and fifty cents or there abouts.

Lots of thousands? Never. I would remember lots of thousands -

 

[Pilot2013]

I know it seems crazy, but it was an honest mistake. I really don;t care if anyone else thinks so or not, or really the IRS for that matter. I know, and as my Dad always told me, that's all that matters.

I'll pay the full amount, penalties and interest included. Then I will try to get some relief on it. They either believe me or don't, or give me a break or don't. Guess time will tell.

 

[Car-Guy]

I know it seems crazy, but it was an honest mistake.

I don't think it seems crazy at all. Folks make honest mistakes all the time.

I'm certainly not a fan of the IRS and strongly disagree with a lot of their R&R's. However, I received a tax/penalty letter a few years ago (20k+) and found they do have some flexibility and can apply some "common sense".

 

[Texas Proud]

For honest mistakes, I don't think they should be able to charge a citizen any more in interest than they pay the same citizen in Savings Bond rates. Also, I think they should be limited to a max of one year interest regardless of how long it takes them to process the return or find the error. Additionally, no penalties for honest (and first time) mistakes. It's not my fault they have made the tax codes so complicated and they can't process them in a reasonable amount of time. (max one year)

When I was working I wouldn't have lasted very long if it took me 18+ months to process incoming paperwork.

Now fraud is a different story.

But as others have said, they write the rules and have the guns.

What a waste of time writing this!

I guess someone does not like the IRS...

But, the problem is in the time frame of reporting... not all entities report early in the process.... they do not want to keep coming back to a year to check out if everything is done properly... might as well wait a year and make sure everything has been reported before checking...

Also, they have had funding cuts for many years... their systems are old... so again, not able to jump on paperwork and get it processed quickly...


It is not the IRSs fault that the tax code is hard to deal with.... that is your elected officials.... at least blame the correct people... and the actual people who can fix it....

 

[rothlev]

I would call and send in the abatement form also. I have had them abate penalties on the phone. Your error is extremely common. We see it every day several times a day in the preseason tax office. Do not beat yourself up about it. Just plead honest error, it will never happen again, one time occurrence. And let us know if you were successful!

 

[Car-Guy]

I guess someone does not like the IRS...

You think!

It is not the IRSs fault that the tax code is hard to deal with.... that is your elected officials.... at least blame the correct people... and the actual people who can fix it....

Agree and I had actually addressed that in my earlier comments but erased it since it was getting to political for this board.

 

[ivinsfan]

I know it seems crazy, but it was an honest mistake. I really don;t care if anyone else thinks so or not, or really the IRS for that matter. I know, and as my Dad always told me, that's all that matters.

I'll pay the full amount, penalties and interest included. Then I will try to get some relief on it. They either believe me or don't, or give me a break or don't. Guess time will tell.

They have already done their worst and all that will happen now it that a little interest will continue to accrue. I might send one-third of the money with a explanation and a request for some mitigation or a payment schedule. If they say no you can always send in the rest of the money. I don't really see any jeopardy to you in this approach. If you want to just put it behind you send the money and forget about it.

 

[JoeWras]

July/August is one of those times people get these letters from the IRS. It appears they have computer time to burn after the spring forms are in, and before the extension forms come in.

My dad had dementia and threw away a few 1099s. His tax preparer swore to me that he asked my Dad "Where is your 1099 for X, we filed it last year." Dad said: "I don't have account X anymore."

2 years later, here comes the IRS letter.

 

[Pilot2013]

I made a call to the number on the CP2000 form. Spoke to a lady who told me to include a letter/note with my response to agreement/disagreement form that is part of the CP2000 letter. She said there was not "Form" to fill out. I hung up, and called back to get another person, which I did. Same answer. Seems the best option is to send the Form back, agreeing to finding and include a letter asking for relief from the penalty. Both said there was little chance wrt the interest.

Worth a try...