No response from IRS about Form 3520 penalty abatement - next steps?

Thanks for your response! I've tried calling the IRS multiple times but can never get through. I'm usually on hold for 1-2 hours before either getting disconnected or being told the call volume is too high to take my call. Do you think requesting the account transcript is the better first step? And if the transcript doesn't show anything about the Form 3520, would that be a good sign or just mean they haven't processed it yet?

Requesting an account transcript is definitely a good first step since it gives you documentation of what's in the IRS system without needing to talk to someone. If the transcript doesn't show anything related to the Form 3520 processing or penalties, it could mean they haven't processed it yet or possibly that they accepted your reasonable cause statement without further action. The IRS phone lines have been notoriously difficult, but early morning (right when they open) on Tuesday through Thursday tends to have slightly better success rates. If you do manage to speak with someone, request that they document your call and inquiry in your account notes.

How does it actually work? Do real people review your tax documents or is it actually AI doing everything? I'm kinda concerned about uploading my tax docs to some random website.

Sounds interesting but I'm skeptical. Did this service actually help resolve anything or just tell you what you already knew? These form 3520 penalties are no joke - they can be 5% of the foreign gift amount PER MONTH up to 25%. I'm wondering if they have specific experience with reasonable cause statements for these penalties.

The service uses AI to do the initial analysis of your documents, but they have tax professionals who review complex cases like Form 3520 issues. Everything is encrypted and secure - they explain their security protocols clearly on the site. They actually helped resolve my situation by identifying exactly what was happening with my forms and giving me specific language to use in my follow-up letter to the IRS. They have extensive experience with Form 3520 penalty abatement cases and reasonable cause statements. Their guidance helped me understand that the IRS had placed my forms in a specialized processing queue, which is why it was taking so long.

Wait, how does this actually work? They just call the IRS for you? Couldn't I just keep trying myself? The IRS phone system is terrible but I've gotten through before after multiple attempts.

This sounds like a scam. There's no way to "skip the line" with the IRS. Their hold queues are automated and everyone has to wait. I seriously doubt this service can magically get you to an agent faster than calling yourself. Why would you pay for something you can do for free?

They don't just call the IRS for you - they use an automated system that continuously redials and navigates the IRS phone tree until it reaches an actual agent. When an agent answers, you get a call so you can talk directly with them. It saves you from being stuck on hold for hours or getting disconnected. You could keep trying yourself, but their system is much more efficient at getting through the busy signals and disconnects. I had tried calling 15+ times myself over several months with no success before using this service. The value isn't in "skipping the line" but in having technology handle the frustrating hold process so you don't waste your day.

The Taxpayer Advocate Service is great but they're extremely backlogged right now too. My brother tried going through them for a different issue and it took 4 months just to get assigned a case advocate. Might be worth trying but don't expect quick results.

You're right that TAS is dealing with significant backlogs, which is why I suggested starting with state-level offices rather than the national office. Local TAS offices sometimes have more bandwidth and can help navigate these issues more quickly. Another approach is to reach out to your congressional representative's office. They often have dedicated staff who handle constituent issues with federal agencies, including the IRS. I've seen cases where a congressional inquiry can cut through red tape when other methods fail.

That's really reassuring to hear! Did you do anything proactive during those 9 months or just wait it out? I'm torn between not wanting to "rock the boat" if things are actually proceeding normally versus needing to know what's happening.

I mostly just waited it out after the first 6 months, but I did request account transcripts twice during that period to see if anything changed. The transcripts didn't show much initially, but the second one (around month 7) started showing some processing codes that indicated movement. One thing that helped my peace of mind was keeping detailed records of everything - dates of all filings, correspondence, and any calls I attempted. That way if something did go wrong later, I had a complete paper trail. But honestly, the waiting was the hardest part. The IRS seems to work on their own timeline with these specialized forms.

I'm in a very similar boat - filed my late Form 3520s in January 2023 and it's been radio silence ever since. The stress of not knowing is honestly worse than just getting a penalty notice at this point! I've been following this thread closely and I think the account transcript approach makes the most sense as a first step. It's free, you can do it online, and it gives you actual documentation of what's in the IRS system without potentially stirring up your case. From what I've gathered reading everyone's experiences, it seems like these foreign reporting forms really do get stuck in specialized processing queues for 12+ months. The fact that so many people here eventually got positive resolutions after long waits gives me some hope. @Grace Lee - definitely keep us posted on what you find with the account transcripts! And @Isabella Santos, please update us if you get any resolution. It s'reassuring to know we re'not alone in this nightmare.