Hi –
The IRS has sent claims for upwards of $2k in penalties for late filings of our LLC partnership returns.
Being a partnership (two people for very small business), there was no tax due and in fact losses flowed through to individuals. One partner – the key guy who dealt with taxes, etc - died mid-year 2008. That first return for 1st half of 08 was due spring of 09 and wasn't filed until august 09. I wrote and explained why it was late (loss / death of key guy, etc) and am still awaiting an answer.
Then for 2nd half of 08, we filed by 10/15/2009 – which as of 2009, now is one month late. (We, like many others, were caught off-guard with the one-month advance in due date from 10/15 to 9/15 – a due date change that I would expect caught more than a few people off guard. (can you imagine the confusion if IRS changed the 4/15 date to say 4/1??
Any way – thought they'd waive both of these penalties but based on conversations with agents it seems they may not. We are not prepared to pay 1500 – 2000 for totally bogus late penalties. (again – there was no tax due; individual returns (with losses not income from partnerships) were filed on time; key person died unexpectedly). What practical options do I have if irs refuses to waive the penalties. Do i have to request a hearing or is there more i can do through the mail?
also - following in IRS' footsteps, NY state came up with its own late filing claim - no answer yet from them as well - this after 2 1/2 months.
Thanks!
The IRS has sent claims for upwards of $2k in penalties for late filings of our LLC partnership returns.
Being a partnership (two people for very small business), there was no tax due and in fact losses flowed through to individuals. One partner – the key guy who dealt with taxes, etc - died mid-year 2008. That first return for 1st half of 08 was due spring of 09 and wasn't filed until august 09. I wrote and explained why it was late (loss / death of key guy, etc) and am still awaiting an answer.
Then for 2nd half of 08, we filed by 10/15/2009 – which as of 2009, now is one month late. (We, like many others, were caught off-guard with the one-month advance in due date from 10/15 to 9/15 – a due date change that I would expect caught more than a few people off guard. (can you imagine the confusion if IRS changed the 4/15 date to say 4/1??
Any way – thought they'd waive both of these penalties but based on conversations with agents it seems they may not. We are not prepared to pay 1500 – 2000 for totally bogus late penalties. (again – there was no tax due; individual returns (with losses not income from partnerships) were filed on time; key person died unexpectedly). What practical options do I have if irs refuses to waive the penalties. Do i have to request a hearing or is there more i can do through the mail?
also - following in IRS' footsteps, NY state came up with its own late filing claim - no answer yet from them as well - this after 2 1/2 months.
Thanks!
