Quick tip that helped me - make sure you check if either of your lenders paid you any refunds that might be listed in Box 4 of the 1098 forms. If you refinanced, sometimes the old lender will refund part of your escrow account. If Box 4 has an amount, H&R Block will ask you if you claimed this as an itemized deduction in a prior year. If you did itemize last year, you might need to report this refund as income on this year's return. Also, don't forget about property taxes! If you were paying property taxes through both lenders' escrow accounts, make sure you capture all property taxes paid (Box 10 on both 1098 forms) for your Schedule A deduction.

I dealt with this exact situation last year after refinancing in the middle of 2023! The key thing to remember is that you absolutely should NOT combine the amounts from your two 1098 forms manually - let the tax software do that for you. In H&R Block, go to the mortgage interest section and enter each 1098 form as a completely separate entry. When it asks for the lender information, make sure you enter the correct lender name and EIN from each form (they'll be different). The software will automatically total both amounts on Schedule A line 8a. That warning about duplicate entries is probably appearing because H&R Block is being cautious, but since you have legitimately different lenders for different time periods, you can proceed through that warning. Just make sure the dates don't overlap between the two mortgages. One thing to double-check: if you paid any closing costs or points on your refinance, those might not all be deductible in the current year. Points on a refinance typically have to be spread out over the life of the loan, but H&R Block should handle that calculation automatically when you indicate it was a refinance. You should end up with the full mortgage interest deduction you're entitled to - just make sure both 1098 forms are entered completely and separately!

I'm so sorry you're dealing with this stress! As someone who's been through similar IRS documentation nightmares, I wanted to share a few additional tips that might help strengthen your appeal: First, when you file Form 12203, consider requesting a "Collection Due Process" hearing as well if they've started any collection actions. This gives you additional procedural protections. Second, in your appeal letter, specifically mention that you're disputing the "determination" rather than just asking for reconsideration. The IRS treats these differently, and a formal dispute of their determination carries more weight. Also, if you still have that original USPS priority mail receipt from April 16th (even without tracking updates), include a copy of that too. Sometimes USPS can provide additional documentation about delivery attempts or processing delays during peak tax season that could support your case. The fact that your transcript shows April 18, 2022 as the received date is huge - that's the IRS's own record contradicting their 105c letter. Focus heavily on that discrepancy in your appeal. You might even want to highlight or circle that date on the transcript copy you submit. Hang in there - you have strong evidence and a good chance of success!

I've been following this thread closely because I'm dealing with a very similar situation, and I wanted to add some important information that might help everyone here. I just got off the phone with an IRS agent (after using that Claimyr service someone mentioned - it actually works!), and she explained something crucial about these 105c letters that I hadn't seen mentioned yet. According to the agent, there's been a systematic issue with their computer system flagging legitimate refund claims as expired due to a glitch in how it calculates dates when returns are filed close to the deadline. She said they've been getting a lot of appeals on 105c letters from 2018-2019 returns that were actually filed on time. The key thing she told me is that when you file your Form 12203 appeal, you should specifically request that they pull your "master file transcript" (not just the regular account transcript) because it shows more detailed processing information including the exact time stamps of when documents were received versus processed. She also mentioned that if your regular transcript shows the correct received date (like Sofia's does), the appeals office has been instructing agents to expedite these cases because it's clear evidence of a system error rather than a legitimate late filing. This gives me a lot more confidence that these appeals will be successful for those of us with proper documentation. It sounds like the IRS is aware this is their mistake, not ours.

As someone who's dealt with preparer liability issues firsthand, I'd add a few practical tips: 1) Always keep copies of EVERYTHING you give your preparer - scan or photo every document before handing it over. This protects you if they claim you didn't provide something. 2) Ask upfront about their amendment policy. Some preparers will file amendments for free if they made the error, others charge full price even for their mistakes. 3) Consider getting a second opinion for complex situations. I had another CPA review my return one year and they caught a $1,800 error my regular preparer missed. 4) Document all communications. If they tell you something verbally about deductions or strategies, follow up with an email confirming what was discussed. The reality is that even with insurance and liability protections, fighting with a preparer over mistakes is a huge hassle. Prevention through good documentation and clear communication is way better than trying to recover costs after the fact.

Great question about tax preparer liability! One thing I learned the hard way is to always ask your preparer about their specific policies upfront. When I switched CPAs last year, I made sure to ask: - Do they carry E&O insurance and what's the coverage amount? - What's their policy on fixing their own mistakes at no charge? - How do they handle missed deadlines or filing errors? - What documentation do they keep of our meetings and the info I provide? My current CPA actually gives me a checklist at the beginning of tax season showing exactly what documents I need to provide and when. She also sends me a summary email after each meeting confirming what we discussed. This kind of documentation has saved me twice when there were questions about deductions later. Also worth noting - if you're really concerned about liability, you might want to consider working with a firm rather than a solo practitioner. Larger firms often have more robust insurance coverage and internal quality control processes. They're usually more expensive, but the extra protection might be worth it for complex situations like yours.

One thing to consider - if your partnership has unamortized organizational costs or start-up expenses that haven't been fully deducted yet, the final year is when you get to write off any remaining amounts. Make sure you don't miss this deduction on your final return! Also, don't forget to file Form 8308 if you had any sales or exchanges of partnership interests during the final year leading up to dissolution. That's another form that's easily overlooked in the dissolution process.

Great discussion everyone! I wanted to add a few practical tips from my experience handling partnership dissolutions: 1. **Documentation is key** - Keep detailed records of all final distributions and asset transfers. The IRS may ask for supporting documentation even years later. 2. **Partner capital account reconciliation** - Make sure each partner's Schedule K-1 capital account analysis (Part III) properly shows how their account went from the beginning balance to zero through final distributions and allocations. 3. **State filing considerations** - Don't forget that most states also require a final partnership return, and some have different requirements than the federal return for what constitutes a "final" filing. 4. **EIN closure** - After filing your final 1065, remember to officially close the partnership's EIN with the IRS by sending a letter stating the partnership has been dissolved and the final return filed. The zero balance requirement on Schedule L for final returns is definitely correct - it's one of those things that seems counterintuitive but makes perfect sense when you think about what "final" actually means from a tax perspective.

This is really helpful information! I'm dealing with a similar situation - we filed our 1120 and Form 5472 about 6 weeks late due to a change in accounting firms, and just received our penalty notice for $20,000. Based on what everyone's shared here, it sounds like I have a decent shot at First Time Abatement since we've been filing on time for the past 4 years. I'm going to try the formal letter approach first, making sure to include our compliance history documentation and reference the IRM section that Brianna mentioned. One quick question - for those who were successful with FTA, did you wait for the penalty to be formally assessed before requesting abatement, or did you submit the request as soon as you received the penalty notice? I'm wondering if timing affects the success rate at all.

I went through this exact situation last year and successfully got our Form 5472 penalties completely abated using First Time Abatement. Here's what worked for us: 1. **Act quickly** - Don't wait. The penalties continue to accrue monthly, so file your late returns immediately if you haven't already. 2. **Document everything** - Gather proof of your clean 3-year compliance history. We included copies of our previous years' filing confirmations and IRS transcripts showing timely filings. 3. **Write a detailed letter** - Reference IRM 20.1.1.3.3.2.1 specifically. Explain the circumstances that led to the late filing, emphasize it's your first offense, and detail the steps you've taken to prevent future occurrences. 4. **Be persistent** - Our first request was denied with a generic response. We appealed with additional documentation and got full abatement on the second try. The key thing to understand is that Form 5472 penalties are harsh but FTA still applies if you meet the criteria. With 6 years of clean history, you're in a strong position. Don't let your accounting firm's hesitation discourage you - many CPAs aren't familiar with how FTA applies to international reporting penalties. Total time from first request to full abatement was about 12 weeks. The $25,000 we saved was definitely worth the effort!