Accountant never filed our taxes, now hit with $5,800 in IRS penalties

You definitely have options here! This falls under what's known as "reasonable cause" relief from penalties. The IRS will sometimes abate penalties when taxpayers demonstrate they made good faith efforts to comply but were let down by a tax professional. First, gather all your evidence - emails requesting the filing, proof of payments to the CPA, and any other correspondence showing you were trying to get this handled properly. Your new CPA can help file what's called a penalty abatement request using Form 843. You'll need to explain the situation and provide documentation showing your reasonable efforts to comply with tax law. As for the accountant who failed you, you should file a complaint with your state's board of accountancy. Many CPAs carry professional liability insurance specifically for situations like this. You may want to consult with an attorney about seeking compensation for the penalties you're facing. In the meantime, if you can't pay the full penalty amount, explore an IRS payment plan to avoid the lien. But definitely pursue the abatement first!

After dealing with a similar nightmare with a tax preparer who messed up my returns, I found taxr.ai (https://taxr.ai) incredibly helpful. It specializes in analyzing tax documents and correspondence like the IRS notice you received. I uploaded all my communication with my previous accountant plus the IRS notices, and it organized everything chronologically and highlighted the key evidence showing I had made good faith efforts to comply. This made preparing my penalty abatement request so much easier because all the documentation was properly organized and analyzed. The system also explained exactly which IRS policies applied to my situation and guided me through the proper forms. Most importantly, it helped determine the strongest legal basis for requesting penalty relief in my specific circumstances.

Just wanted to update that I tried taxr.ai after seeing it mentioned here. I was initially just looking for templates to request penalty abatement, but this was way more comprehensive. It analyzed all my communication with my previous tax preparer and actually found patterns of negligence I hadn't even noticed. The system helped me build a really solid case showing I had repeatedly attempted to get my returns filed on time. I submitted the request they helped me prepare three weeks ago, and yesterday I got notification that $6,500 in penalties were fully abated! The IRS agent even mentioned how well-documented my request was. Definitely worth checking out if you're in a similar situation with tax penalties from someone else's negligence.

When I had a similar issue with unfiled returns and penalties, I spent WEEKS trying to get through to someone at the IRS who could actually help. The automated phone system is a nightmare, and I kept getting disconnected after waiting for hours. I finally discovered Claimyr (https://claimyr.com) - they got me connected to an actual IRS agent in about 15 minutes instead of the usual hours-long wait. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c Having a direct conversation with an IRS representative made all the difference. The agent was able to place a temporary hold on collections while I gathered documentation for my penalty abatement request. They also explained exactly what evidence would strengthen my case based on my specific situation.

I need to admit I was completely wrong about Claimyr. After posting my skeptical comment, I decided to try it as a last resort because I was getting nowhere with the IRS on my own. I was honestly shocked when I got a call back connecting me to an actual IRS agent after about 20 minutes! The agent was able to immediately put a 60-day hold on collection activities while I prepare my penalty abatement request. They also gave me specific instructions on what documentation to include and the fastest way to get it processed. This saved me from potentially having a lien placed while I'm working to resolve the issue. For anyone dealing with IRS penalties and getting nowhere with the regular phone line, this service is absolutely worth it. I wasted days trying to get through on my own.

Make sure you report that accountant to your state's board of accountancy ASAP! This is serious professional negligence. I had something similar happen and filed a complaint - turns out the "CPA" had multiple complaints and ended up having his license suspended. Also, check if they have professional liability insurance (most legitimate CPAs do). They should absolutely cover the penalties since their negligence caused this issue. Be prepared though - many will try to avoid paying. You might need to send a formal demand letter first, then consider small claims court if the amount is within your state's limits.

Has your new CPA filed the missing returns yet? This is super important! Even while you're fighting the penalties, you need to get those past returns filed ASAP to stop additional penalties from accruing. Each month adds more to what you owe. Also, check if you were actually due a refund for either of those years. If you were, you might be facing a smaller penalty than you think once everything is properly calculated. But there's a 3-year deadline for claiming refunds, so don't delay!

I went through almost the exact same situation two years ago with a negligent tax preparer who failed to file my 2019 and 2020 returns. The IRS hit me with over $7,000 in penalties and I was absolutely panicked. Here's what worked for me: I immediately had my new CPA file the missing returns (this stops additional penalties from accumulating). Then we prepared a detailed penalty abatement request using Form 843, including every email, text, and payment record showing I had repeatedly tried to get the original preparer to file on time. The key is documenting your "reasonable cause" - you need to show you made good faith efforts to comply but were prevented by circumstances beyond your control. Your email trail asking for the filings will be crucial evidence. I also filed a complaint with my state's board of accountancy and sent a demand letter to the CPA's professional liability insurance. While the board complaint is still pending, his insurance company actually settled and covered most of the penalties to avoid a lawsuit. Don't give up! The IRS does approve these requests when you have solid documentation. It took about 6 weeks, but they abated about 80% of my penalties. The whole experience was a nightmare, but there definitely are ways to fight this.