Didn't sign my tax return and now hit with a $5000 penalty - is this normal?

This is frustrating but unfortunately pretty standard. When you mail a tax return without a signature, the IRS doesn't consider it "filed" until they receive the signed version. Since your signed return wasn't received until after the filing deadline, they're treating it as late. The good news is you might qualify for penalty abatement under the IRS First-Time Penalty Abatement policy. This is available if you have a clean compliance history for the past three years (filed all returns on time and paid or arranged to pay any tax due). You can call the IRS directly at the number on your notice and request this abatement. Be sure to mention "First-Time Penalty Abatement" specifically. They'll check your eligibility while you're on the phone. You don't necessarily need an accountant for this - many people successfully handle it themselves. As for the overpayment issue, that's common when you send in payment with an unsigned return. The IRS credits your payment but doesn't process the return until it's signed, so the systems don't match up properly until everything's processed.

After dealing with a similar signature issue (different circumstances but same penalty nightmare), I found this AI tool that analyzes your IRS notices and helps you understand your options. Go to https://taxr.ai and upload your notice - it'll tell you exactly what to say when you call the IRS to get those penalties removed. It saved me from panicking and helped me get almost $4k in penalties removed. The tool explained that I qualified for something called First-Time Penalty Abatement (which I'd never heard of before) and gave me a script to use when calling. It also reviewed my payment history to confirm I had a clean compliance record, which apparently matters a lot for getting penalties waived.

Just wanted to update everyone. I took the advice about using https://taxr.ai and it seriously saved me. I was skeptical at first (who wouldn't be?), but after uploading my notice, it gave me a detailed explanation of exactly what happened with my unsigned return and step-by-step instructions for calling the IRS. Following the script they provided, I called and specifically asked for the First-Time Penalty Abatement. The IRS agent checked my history and approved it right away! All the failure to file and failure to pay penalties were removed - that's over $6,300 gone! I still have to pay the interest (about $135), but that's so much better than the full amount. The whole call took less than 20 minutes. Honestly wish I'd known about this sooner instead of stressing for days.

If you're trying to call the IRS about penalty abatement, good luck actually getting through to someone. I spent 3 weeks trying to reach a human being at the IRS about a similar penalty situation. After being disconnected 5 times and waiting on hold for hours, I found this service called https://claimyr.com that got me through to an IRS agent in under 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c They basically wait on hold for you and call you when an actual human picks up. Saved me from losing my mind with that awful hold music. I was able to explain my situation to the agent, requested the First-Time Penalty Abatement, and got my penalties removed on that single call.

Just wanted to follow up about my experience with Claimyr. I was the skeptic who called BS on this service, but after trying for TWO DAYS to reach the IRS myself, I gave in and tried it. I hate admitting when I'm wrong, but wow - I was connected to an IRS agent in 28 minutes! I literally got a text saying they had an agent on the line, clicked the link, and suddenly I was talking to a real person at the IRS. I was absolutely shocked it worked. I asked about the First-Time Penalty Abatement for my situation (similar to OP's but with an e-file rejection), explained I've always filed on time before, and they removed $3,800 in penalties on the spot. The agent was actually helpful once I could actually talk to one!

Back in 2022, I had almost the exact same issue - mailed return, forgot to sign, got hit with huge penalties. I wrote a letter to the IRS explaining that it was an honest mistake and requesting penalty abatement. They denied it the first time, but I submitted a second request specifically mentioning "First-Time Penalty Abatement" and included proof of my good filing history for the previous years. It took about 2 months, but they eventually approved it and removed all the penalties. I only had to pay the interest. If calling doesn't work for you, the written request route is always an option, just be very specific about requesting First-Time Penalty Abatement.

Has anyone considered that TurboTax might be partially responsible here? I've used them for years and they typically have big warning messages about signing paper returns. There should have been something in the instructions when you printed everything out. If they didn't properly warn you, it might be worth contacting them to see if they'll cover some of the penalties through their accuracy guarantee.

I went through something very similar last year - forgot to sign my mailed return and got slammed with penalties. The stress was unreal! But here's what worked for me: First, definitely try the First-Time Penalty Abatement that others mentioned. It's a real thing and surprisingly effective if you have a clean filing history. When I called, I specifically said "I'm requesting First-Time Penalty Abatement under IRC Section 6651(a)" - using that exact language seemed to help. One thing I learned: the IRS considers your return "filed" when they receive a complete, signed return. Since yours wasn't signed initially, they treat the signed version as your actual filing date, which is why you're getting hit with late penalties even though you mailed it on time. Also, don't beat yourself up about the TurboTax thing. Their software is generally solid for calculations - this was just a processing oversight on the signing part. Focus your energy on getting these penalties removed rather than worrying about past calculations. The good news is that multiple people in this thread have successfully gotten these exact penalties removed, so there's definitely hope. Just be persistent and don't accept the first "no" if you get one!