aja8888
Moderator Emeritus
In early 2017, I filed a 5500 EZ tax return (two page return) to close out my SOLO 401k (the first required and Final return). No taxes were due to the low amount in the plan. The filing is a matter of closure notification of the plan.
Two years later (early 2019), I received a letter from the IRS saying I did not file the final 5500 EZ return. I called my CPA, who was recovering from a stroke, and he said just write the IRS a letter explaining I filed the return and enclose a copy of the return. BTW, I have a U.S.P.S. return receipt, certified mail, that indicates they received the original 2017 5500 EX Tax Return mailing.
A few months pass and I get a penalty notice for $15,000 from the IRS (form letter!). I get my CPA on the line and we call the IRS office and speak with an agent. Agent verifies the 2017 sent return is not in their computer. She (the agent) suggests we send a letter explaining everything and file another Final return. We do that.
A few months later (it’s now February 2020 - Covid hits) I get another penalty notice. I call the IRS again and reach a person who says send another letter, attach everything, and wait as the offices are shut down due to the pandemic. So I craft another letter, put copies of the earlier letters with it and the rest of the documentation.
Time goes on and I continue to get computer generated penalty notices adding on interest, I call the IRS again in January 2021 and reach another agent who I believe is working from home. We have a candid, long talk and I repeat everything the last two agents told me to do. I specifically asked if my certified letters or explanation are on file. He asked me where I sent them to and I said the address on the notices where I was required to send them to. Now comes the good part…
He says the letters probably went into a “room in another building” and probably have not been read and may never be read (!!!). I asked him what I have to do to get this issue resolved. His answer was to put together a FAX and send it in as someone will probably read it. So I did that and now it’s August and today I got another penalty letter with updated interest added.
My CPA died Easter Sunday and I have no clue where to go, who to see, or what else to do to get this resolved. I would at least like the IRS to read what I have sent in many times and have the courtesy to respond to my documented claim of me mailing the return.
Questions I have for this knowledgeable and experienced group:
1. Is there an “IRS advocate” I can seek out to get help with the closing of this issue?
2. Does it make sense to seek out another CPA to work with me on this? I am the “Plan Administrator” and really the key guy. My past CPA said I should be able to clear this up with no other help, although he did advise me and that has not worked so far.
3. What other suggestions can I get from this group?
Thanks in advance.
Two years later (early 2019), I received a letter from the IRS saying I did not file the final 5500 EZ return. I called my CPA, who was recovering from a stroke, and he said just write the IRS a letter explaining I filed the return and enclose a copy of the return. BTW, I have a U.S.P.S. return receipt, certified mail, that indicates they received the original 2017 5500 EX Tax Return mailing.
A few months pass and I get a penalty notice for $15,000 from the IRS (form letter!). I get my CPA on the line and we call the IRS office and speak with an agent. Agent verifies the 2017 sent return is not in their computer. She (the agent) suggests we send a letter explaining everything and file another Final return. We do that.
A few months later (it’s now February 2020 - Covid hits) I get another penalty notice. I call the IRS again and reach a person who says send another letter, attach everything, and wait as the offices are shut down due to the pandemic. So I craft another letter, put copies of the earlier letters with it and the rest of the documentation.
Time goes on and I continue to get computer generated penalty notices adding on interest, I call the IRS again in January 2021 and reach another agent who I believe is working from home. We have a candid, long talk and I repeat everything the last two agents told me to do. I specifically asked if my certified letters or explanation are on file. He asked me where I sent them to and I said the address on the notices where I was required to send them to. Now comes the good part…
He says the letters probably went into a “room in another building” and probably have not been read and may never be read (!!!). I asked him what I have to do to get this issue resolved. His answer was to put together a FAX and send it in as someone will probably read it. So I did that and now it’s August and today I got another penalty letter with updated interest added.
My CPA died Easter Sunday and I have no clue where to go, who to see, or what else to do to get this resolved. I would at least like the IRS to read what I have sent in many times and have the courtesy to respond to my documented claim of me mailing the return.
Questions I have for this knowledgeable and experienced group:
1. Is there an “IRS advocate” I can seek out to get help with the closing of this issue?
2. Does it make sense to seek out another CPA to work with me on this? I am the “Plan Administrator” and really the key guy. My past CPA said I should be able to clear this up with no other help, although he did advise me and that has not worked so far.
3. What other suggestions can I get from this group?
Thanks in advance.