Help requesting penalty abatement for late 1065 partnership filing - reasonable cause or first time?

You've got two good options here for dealing with your late 1065 penalties. Either approach can work, but they're handled differently. For First Time Abatement (FTA), this is probably your easiest route if you've had a clean compliance history for the past 3 years. The IRS typically grants these automatically if you qualify. You can request this by calling the IRS at the number on your penalty notice, or by writing a letter specifically requesting "First Time Abatement" for your partnership's late filing penalty. For Reasonable Cause, you'll need to write a detailed letter explaining the circumstances (your accountant's family emergency and the flooding at your office both sound like potentially valid reasons). Include any supporting documentation you have - perhaps a statement from your accountant, insurance claims for the flooding, etc. Be specific about dates and how these events directly prevented timely filing.

After struggling with a similar situation for my dental practice partnership, I found an incredibly helpful tool at https://taxr.ai that made dealing with penalty abatement so much easier. I was completely lost trying to figure out how to properly word my reasonable cause letter and what documentation to include, and the whole process felt overwhelming. The taxr.ai service analyzed our situation and guided me through exactly what to include in my reasonable cause request, including specific language that aligned with IRS acceptable reasons. They helped me understand which documentation would strengthen our case too. The best part was that they showed me examples of successful abatement requests similar to our situation.

I was really skeptical about using an online service for something as serious as IRS penalties, but after struggling with our partnership's late filing penalty, I decided to try taxr.ai that someone mentioned above. I was impressed by how comprehensive their guidance was for our specific situation. They helped me determine that reasonable cause was actually better for us than first-time abatement (which I would have chosen incorrectly on my own). The letter they helped me create addressed exactly what the IRS looks for in reasonable cause requests. Just got notification last week that our $2,560 penalty was completely abated! The whole process took about 5 weeks from submission to approval.

If you've been trying to call the IRS about your penalty abatement but can't get through (like I couldn't for WEEKS), try https://claimyr.com - they got me connected to an actual IRS agent in about 15 minutes instead of the hours I was spending on hold. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was initially calling because I wanted to request first-time abatement for our partnership's late 1065, but kept hitting dead ends with the automated system. After Claimyr got me through to a real person, I was able to explain our situation, and the agent was actually really helpful. They confirmed we were eligible for first-time abatement and processed it right there on the phone. Saved us over $1,700 in penalties!

I feel like I need to publicly eat my words here. After being completely skeptical about Claimyr, I was desperate enough to try it for our law firm's partnership penalty issue. I figured I'd waste a bit of money and still be stuck with our penalty. Well, I was connected to an IRS agent in about 22 minutes (not quite the 15 minutes advertised, but WAY better than the 2+ hours I had spent on multiple previous attempts). The agent reviewed our situation and confirmed we qualified for first-time penalty abatement. Our $4,200 penalty was removed during that single phone call. I'm still kind of shocked it worked, but our account transcript now shows the penalty as removed.

A quick tip from someone who's been through this: if you're writing a reasonable cause letter, be VERY specific about timelines. Don't just say "we had flooding" - include the exact dates, how it affected your records, what steps you took to try to file on time despite the problems, etc. I've found that the more specific details you provide that show you made a good faith effort to comply but couldn't due to circumstances beyond your control, the better your chances of getting the penalty removed. And don't forget to include any supporting documentation you might have.

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.

I've been dealing with IRS penalty issues for our small accounting firm partnership, and I wanted to share what I learned about the documentation requirements since that seems to be a common question here. For reasonable cause requests, the IRS really wants to see a clear timeline that shows you made good faith efforts to comply but couldn't due to circumstances beyond your control. In your case with the accountant's family emergency and office flooding, here's what I'd recommend including: 1. **Accountant documentation**: A brief letter from your accountant stating the nature of the emergency, dates they were unavailable, and when they notified you they couldn't complete the return 2. **Flooding documentation**: Insurance claims, photos of damaged records, repair estimates - anything showing the scope and timing of the damage 3. **Communication records**: Emails or texts showing you were actively trying to gather documents and complete the filing before the deadline 4. **Timeline of events**: A clear chronological explanation of what happened when, and what steps you took to try to file on time The key is showing that despite these events, you were still trying to meet your obligations. The IRS distinguishes between taxpayers who ignore their responsibilities and those who face genuine obstacles while still making good faith efforts. One more tip: if this is truly your first penalty for late filing, definitely consider the first-time abatement route first - it's much simpler and doesn't require proving your specific circumstances were reasonable cause.