I just went through this exact same penalty abatement process for a Section 6657 dishonored payment penalty and wanted to share what worked for me! Like you, I had sufficient funds in my account when the IRS tried to process my payment, but something went wrong on their end. Here's the approach that got my penalty completely removed: **My successful strategy:** 1. **Paid the penalty immediately** to stop interest from accumulating (they'll refund it if approved) 2. **Used Form 843** as the official abatement request mechanism - this is critical 3. **Wrote a concise but detailed letter** explaining the situation, referencing my SSN, tax year, and CP14 notice number 4. **Included highlighted bank statements** showing my account balance exceeded the payment amount on the processing date 5. **Sent everything certified mail** to the address on my CP14 notice The key was being factual and specific about dates while keeping the letter professional and to the point. I emphasized that I had sufficient funds, filed on time, and paid immediately upon discovering the issue - basically proving it wasn't due to my negligence. It took about 6 weeks to get approval, but they removed the penalty entirely and refunded what I had paid. Don't lose hope - these situations are more common than you'd think with electronic payments, and the IRS is generally reasonable when you can document that you had the funds available.

I went through this exact situation last year and successfully got my Section 6657 penalty removed! The process can be frustrating, but it's definitely doable when you have the right documentation. Here's what I learned from my experience: The IRS is actually pretty reasonable about these penalties when you can clearly demonstrate that the payment failure wasn't due to insufficient funds or negligence on your part. Since you filed on time, had adequate funds, and paid immediately once you discovered the issue, you have a strong case. For the letter itself, keep it professional but straightforward. Start with your identifying information (name, SSN, tax year, CP14 notice number), clearly state that you're requesting abatement of the Section 6657 penalty, and explain that you had sufficient funds when the payment was supposed to process. Include the date your payment was supposed to go through and the date you successfully made the payment once you discovered the issue. The bank statements are crucial - make sure they clearly show your account balance on the date the IRS attempted to process your payment. I'd also recommend including Form 843 (Claim for Refund and Request for Abatement) as the formal mechanism for your request. Regarding payment timing, I'd suggest paying the penalty now to stop interest from accruing. The IRS will refund it with interest if they approve your abatement request. Send everything via certified mail to the address on your CP14 notice. In my case, it took about 7 weeks to get a response, but they completely removed the penalty. Stay patient and persistent - you've got this!

The good news is that Energy Transfer LP typically makes their K-1s available online through their investor portal around mid-March each year, so you should be able to access your missing forms going back several years. You'll want to log into ET's investor relations website and look for tax documents. One important thing to understand about MLP K-1s is that they often show losses in the early years due to depreciation and depletion deductions, even when you're receiving cash distributions. This means you might actually owe less tax than you think, or even get refunds when you file amended returns. The key is to act quickly though. While the IRS has up to 3 years to assess additional taxes for most situations, if you substantially underreport income (by 25% or more), they have 6 years. And there's no statute of limitations if you don't file at all. Given that MLPs send copies of all K-1s directly to the IRS, this is definitely on their radar. I'd recommend getting all your K-1s first, then either using tax software that handles MLPs properly or consulting with a CPA who has experience with partnership taxation. The complexity goes beyond just reporting income - there are basis adjustments, potential state filing requirements, and other nuances that can trip you up if you're not careful.

I'm in a very similar situation with my Energy Transfer LP shares - owned them for about 4 years and just discovered I should have been reporting K-1s this whole time. Reading through everyone's experiences here has been both terrifying and helpful! What really caught my attention was the mention of automated IRS systems flagging discrepancies regardless of dollar amount. I always assumed my small position wouldn't matter, but it sounds like that's not how it works. The fact that ET sends copies of all K-1s directly to the IRS means they definitely know what I should have been reporting. I'm planning to log into ET's investor portal this weekend to pull all my historical K-1s. From what I'm reading here, it sounds like I need to prepare for filing amended returns for the past few years. The complexity around basis adjustments and potential state filing requirements is honestly overwhelming, but I'd rather deal with it now than wait for the IRS to come knocking. Has anyone found a good resource or guide that walks through the amendment process specifically for unreported MLP K-1s? I'm trying to figure out if this is something I can handle myself or if I need to bite the bullet and pay for professional help.

Has anyone used the homeowner casualty loss section in TurboTax? Is it straightforward or should I just go to a professional this year? I've always done my own taxes but never had to deal with storm damage before.

I went through something similar after Hurricane damage last year. One thing I learned that might help - keep detailed records of everything, not just the repair costs. Document the date of the storm, take photos of the damage before repairs, and save all correspondence with your insurance company. Even if your area wasn't federally declared, some repairs might still qualify for deductions in specific situations. For example, if you have a home office and the storm damaged that part of your house, a portion of those repair costs could potentially be deductible as a business expense. The key is proving the business use of that space. Also, don't forget about potential state tax benefits. While federal casualty loss deductions are limited, some states have their own rules that might be more generous. Worth checking with your state's tax authority or a local tax professional who knows your state's specific regulations. The $4,800 you spent is significant enough that it's worth exploring all options, especially since you've already done the hard work of getting everything repaired and documented!

Thanks everyone for the detailed responses! This is super helpful. I'm feeling much more confident about handling this now. One quick follow-up question - since I only started with Amazon Vine in September last year, would it make sense to start making quarterly estimated payments now for this year's taxes, or should I wait until I have a better sense of how much I'll receive in products this year? Also, for those who mentioned deducting business expenses - I assume I need to keep receipts for everything, right? Like if I buy a new camera specifically for taking better product photos for my reviews, that would be deductible?

Just wanted to add another perspective on this - I've been dealing with Amazon Vine taxes for three years now and one thing that really helped me was creating a simple spreadsheet to track everything throughout the year. I log each product I receive with its fair market value (from the email Amazon sends), the date received, and what category it falls into. This makes tax time SO much easier because you're not scrambling to figure out what that $3,200 on your 1099-NEC actually represents. Plus, it helps you estimate your quarterly payments more accurately as the year goes on. One tip that saved me money: if you return any Vine products to Amazon (which you're allowed to do), make sure to track those too. The returned items shouldn't be included in your taxable income, but Amazon sometimes includes them in your 1099-NEC anyway. Having documentation of returns can help you adjust your reported income correctly. Also, don't forget that if you donate any Vine products to charity, you can potentially deduct their fair market value as a charitable contribution (separate from your business deductions). Just make sure to get proper documentation from the charity!

This is such a helpful thread! I've been making this exact mistake for the past two quarters. I run a small landscaping business and our pay periods often cross month boundaries, so I was reporting everything based on when the work was done rather than when paychecks were issued. After reading through all these responses, I realize I need to go back and file amended 941 forms for Q1 and Q2 this year. I had several March pay periods that got paid in April, and I incorrectly included those wages on my Q1 filing instead of Q2. One question though - when I file the amended returns, do I need to also adjust my federal tax deposits? I've been making deposits based on the incorrect quarterly allocations, so I'm wondering if that creates additional complications with the IRS.

I went through this exact same confusion when I first started handling payroll for our company. The key thing that helped me remember the rule is this: the IRS wants to match your 941 quarterly reports with your actual federal tax deposits, and deposits are based on when you pay employees, not when they earn the wages. So if you have a March pay period but the actual payday is in April, that's when you'd make your federal tax deposit (within the required timeframe after the April pay date), and that's also when it should appear on your 941. This also makes year-end reconciliation much easier because your quarterly 941 totals will match up properly with your W-2 forms, which are also based on payment dates rather than work periods. One tip: keep good records of your pay periods vs. pay dates, especially around quarter boundaries. It'll save you headaches if you ever need to explain the timing to the IRS or your accountant during tax season.