Has anyone used the IRS Online Account to request first time abatement for a partnership? I've used it for my personal taxes but wasn't sure if it works for business penalties too.

I went through this exact same situation with our family plumbing business partnership last year. We got hit with a $3,400 penalty for late 1065 filing due to similar circumstances (our CPA had health issues and we had some missing K-1s from a subcontractor). Here's what worked for us: we ended up going with the reasonable cause route since we had good documentation. The key things that helped our case were: 1. A letter from our CPA explaining his unavailability during the critical filing period 2. Email chains showing we were actively trying to get our documents together before the deadline 3. Records showing we filed an extension request (even though we missed the original deadline) We sent everything by certified mail to the address on our penalty notice, and it took about 8 weeks to get a response. They approved our reasonable cause request and removed the entire penalty. One thing I'd add to what others have said - if you're a small partnership like us, make sure to emphasize in your letter that you typically handle your tax obligations responsibly. The IRS seems to look more favorably on small businesses that can show they're not habitually non-compliant. Good luck! These penalties are brutal for small businesses, but there's definitely hope for getting them removed with the right approach.

Random tip - make sure when you contact the IRS you update your address with them! Since you mentioned you moved and they're sending notices to your old address, you need to file Form 8822 immediately to update your address. If you don't, you might miss future notices or deadlines even if you resolve this current issue. The IRS will keep sending mail to your last known address until you officially notify them of the change.

I went through almost the exact same situation with my LLC last year - CP162A notice, lost mail, tight finances, the whole nightmare. Here's what worked for me: 1. **Call immediately** - Don't wait. Use the number on your notice and ask specifically for "first-time penalty abatement" or "FTA". Have your notice and EIN ready. The rep can see your clean compliance history instantly. 2. **Document everything** - That saved return with the February date and your credit card statement showing the USPS charge are actually solid evidence. Print them out and keep copies handy. 3. **Currently Not Collectible status** - Since you mentioned your income vs expenses ($1800 vs $2900), you likely qualify for "Currently Not Collectible" status. This stops all collection activity while you're experiencing financial hardship. Ask about this on your call. 4. **Don't panic about housing** - The IRS won't make you homeless over this. They have hardship protections and you have legitimate grounds for abatement. I got my $1,950 penalty completely removed using first-time abatement. The call took about 45 minutes total, and I received confirmation by mail two weeks later. Your situation sounds even stronger than mine was since you have that postal receipt evidence. You've got this! The IRS deals with lost mail situations constantly - it's not as uncommon as you'd think.

Do tax software programs like TurboTax handle trust filings like 1041? This all seems really complicated.

I went through something very similar when my father passed and left a trust with just one property. The 1041 filing seems scary but it's actually pretty straightforward for simple trusts like yours. Since you're both executor and sole beneficiary, and the trust only holds the farmhouse, your 1041 will likely be quite basic. Here's what I learned: 1. You absolutely must file even if there's zero income - the IRS expects it once you have an EIN 2. Property taxes you paid are fully deductible on the 1041 3. Any maintenance or repairs you paid for are also deductible 4. Don't worry about the sale yet - you only report it in the tax year it actually closes For documentation, your bank statements showing property tax payments will be sufficient. The IRS understands that family trusts don't always have perfect recordkeeping. One tip: if you're really pressed for time, you can file for an extension (Form 7004) which gives you an extra 5.5 months. This might be worth considering given your tight deadline and the complexity of selling the property. The key is not to panic - simple trusts like yours are much more common than you think, and the IRS forms are designed to handle basic situations.

Bruh michigan needs to get it together fr fr. Every year its sum new bs 🤮

Having the same issue here! Was expecting my Michigan refund on Friday but nothing showed up. Called twice and got the runaround both times. At least now I know it's not just me - thanks for posting this. Hopefully they get their act together soon because I really needed that money this week 😤

There's a simple way to check if an extension was actually filed. Call the IRS at the Practitioner Priority Line (1-866-860-4259) and ask for a "tax account transcript" for the tax year in question. The transcript will show exactly when your return was received and if an extension was filed. This is official IRS data that can't be manipulated by your accountant. You can also request it online through the IRS website if you create an account. The transcript will show every transaction with date stamps. If your accountant really filed an extension, it will appear with code "460" on your account transcript.

I'm really sorry you're going through this - it's such a violation of trust when a professional you rely on isn't honest with you. Based on everything you've described, I agree with the other commenters that your accountant appears to be lying. One thing I haven't seen mentioned yet: you should document everything immediately while it's still fresh. Write down all the dates your accountant told you things were filed, save every email and text message, and keep copies of any documents he provided (even the suspicious ones). This documentation will be crucial if you decide to pursue malpractice claims or file complaints with regulatory bodies. Also, since you mentioned this is affecting both federal and state taxes, make sure you're addressing both separately. State tax authorities often have their own penalty abatement programs, and the process might be different from the federal IRS abatement. The $13,000 in penalties is substantial enough that you might want to consult with a tax attorney who specializes in penalty abatement cases. Many offer free consultations and can quickly assess whether you have grounds for both penalty relief and potential recovery from your accountant's errors or omissions insurance. Don't let this drag on any longer - every day those collection notices get more serious, and your options may become more limited.