Has anyone tried the Reasonable Cause Assistant on the IRS website? I just discovered it exists but wondering if it's actually helpful for S Corp penalties or mostly for individual tax stuff.

I'm dealing with a similar situation right now - about $8k in S Corp penalties across three years. After reading through all these responses, I'm feeling more hopeful that there might be options. One thing I wanted to add is that you should definitely request your penalty computation worksheets from the IRS before you submit any abatement requests. Sometimes there are calculation errors or the penalties weren't applied correctly in the first place. I've heard of people getting significant reductions just by having the IRS recalculate properly. Also, for anyone considering the AI tools mentioned here - make sure you understand exactly what you're getting. While they might help generate letters, you still need to understand your specific situation and provide accurate information. The IRS will want supporting documentation for any claims you make. Has anyone tried working directly with the Taxpayer Advocate Service for these types of penalty issues? I'm wondering if that's worth exploring before going the paid service route.

Friendly reminder to everyone dealing w this: don't try calling IRS about it. File the proper forms and wait. Calling just wastes ur time fr

Been through this exact situation myself. The IRS will definitely go after your ex - they don't mess around with fraudulent dependent claims. Beyond the penalties Anna mentioned, your ex might also have to pay interest on any unpaid taxes. The good news is that since you have a court order, you have solid documentation on your side. Just make sure to file your return claiming the child even if it gets rejected electronically - mail it in with copies of the court order attached. The IRS will sort it out and your ex will have to deal with the consequences.

I just went through this exact situation last month and can confirm what others have said - you absolutely need to file an amendment for your wife's separate return to avoid future headaches. Here's the key thing that saved me time: when filing your wife's "zero-out" amendment, make sure to include a copy of your joint amended return in the same envelope. The IRS processors can then see both documents together and understand the full picture immediately. Also, don't worry too much about the negative $2,600 showing on her return - that's probably her expected refund from the separate filing. Once both amendments are processed, any refund amounts will be recalculated based on your joint return. The IRS will either adjust your joint refund or send a separate notice explaining any changes. One tip: call the IRS about 6-8 weeks after mailing both amendments to confirm they were received and linked properly in their system. This saved me from a potential CP2000 notice down the road.

I'm dealing with this exact situation right now and it's been such a stressful mess! Thank you everyone for the detailed advice - I had no idea that my wife needed to file her own amendment to zero out her separate return. One question I haven't seen addressed: if we already e-filed both of our original separate returns, do the amendments need to be paper filed? I tried to e-file my joint amendment through my tax software but it kept giving me errors about conflicting returns in the system. Also, has anyone had success getting the IRS to expedite processing when you explain it's a filing status change situation? The 16-20 week wait time is terrifying when you're worried about penalties or notices showing up. I'm going to try that Claimyr service to actually talk to someone, but wondering if there are any magic words to use when explaining the urgency. Really appreciate this community - the IRS website and phone system have been absolutely useless for getting clear guidance on this situation!

Anyone know if they're processing these by date received or by quarter claimed? I filed 941X for Q4 2020 in December 2023 but haven't heard anything yet.

I'm in a similar boat - filed my 941X in February 2024 for about $95k in ERC claims and still waiting. My CPA warned me it could take 8-12 months but seeing all these real experiences helps me understand what to expect. One thing I'd recommend is keeping meticulous records of everything. I've heard the IRS is doing more audits on ERC claims now, so having your payroll records, shutdown orders, revenue comparisons, and employee headcount documentation all organized could save you headaches later. Also make sure you have certified mail receipts showing when the IRS received your forms. That's your official "start date" for the processing timeline, not when you mailed them. The waiting is brutal but sounds like most people are eventually getting their refunds if they legitimately qualify. Hang in there!

For anyone coming across this post later - I found another way to get this info. If you used tax software last year, log into your account and check if they offer a "tax documents" section. I discovered TurboTax actually has my 1099-INT from the IRS already imported for this year even though I never entered it manually! Apparently, they pull this data automatically from the IRS database when you start a new return. Saved me a ton of trouble.

For those having trouble with the Get Transcript online system, there's actually a third option that's often overlooked - you can request transcripts by fax using Form 4506-T. It's faster than mail (usually 3-5 business days) but slower than online. Also wanted to mention that if you're dealing with a really small amount (like under $10), you can actually call the IRS practitioner priority line if you're working with a tax professional. They sometimes have shorter wait times than the general taxpayer line. Just make sure you have your SSN, filing status from last year, and the exact refund amount ready when you call. The key thing is don't let this stress you out too much - the IRS would much rather you file accurately even if it's a few days late than rush and make mistakes!