Sent closure notice to IRS for LLC in 2020 but now they're charging thousands in late filing penalties for 2022 - unemployed and desperate for help!

I work with these kinds of issues regularly, and what you're experiencing happens more often than you might think. The IRS has been severely backlogged since the pandemic, and closure requests often get stuck in processing limbo. First, don't panic. You have a documented paper trail that shows you attempted to close the LLC properly, which is extremely helpful. What you need to file is a penalty abatement request using Form 843 "Claim for Refund and Request for Abatement." You'll want to cite "reasonable cause" as your basis for requesting the abatement. Include copies (never originals) of all your correspondence with the IRS showing your attempts to close the LLC and file the final returns. Also request a Collection Due Process hearing using Form 12153. This will put collections on hold while you resolve the dispute. Make sure to check the box that you're challenging the liability itself, not just the collection method. The good news is that the IRS generally grants abatement requests when you can show you made good faith efforts to comply, which it sounds like you definitely did. Make sure to keep copies of everything you send them.

I went through something really similar last year with my closed LLC getting hit with penalties. After months of stress and not being able to get anyone on the phone, I discovered taxr.ai (https://taxr.ai) and it seriously saved me. Their AI system analyzed all my IRS notices and correspondence history, then generated a customized penalty abatement letter citing the exact sections of the tax code that applied to my situation. The best part was that they highlighted exactly which of my documentation provided the strongest case for reasonable cause. They flagged that I needed to reference "IRC Section 6724" specifically about having made timely good-faith efforts to comply. Within 60 days of sending their recommended letter, my penalties were fully abated! Worth checking out if you're stuck like I was.

I was really skeptical about using an AI service for my tax problems too, but after struggling with a similar LLC closure nightmare, I finally tried taxr.ai and wish I'd found it months earlier. They identified that my initial closure paperwork had been routed to the wrong IRS department (which explained why it never got processed properly). Their system generated a perfect abatement request letter that cited specific internal IRS procedural failures and included references to the Taxpayer Bill of Rights. Three weeks after sending their recommended documentation package, I got a notice that my $4,300 in penalties was completely removed. What would have taken me dozens of hours to research and compile took their system minutes to analyze and prepare. Definitely worth checking out for anyone dealing with IRS bureaucracy issues.

I had an almost identical situation with my food truck LLC in 2021. After 8 months of trying to call the IRS with no success (literally hundreds of attempts), I finally discovered Claimyr (https://claimyr.com) and it completely changed everything. They have this system that actually gets you through to a live IRS agent, usually within 15-45 minutes instead of waiting on hold for hours or getting disconnected. I was so desperate I tried it after watching their demo (https://youtu.be/_kiP6q8DX5c) and was honestly shocked when I was actually talking to a real IRS person that same day. The agent I spoke with was able to pull up my entire file history, confirm they had received my closure documents back in 2021, and put a hold on the penalties while they investigated. Two weeks later I got a letter officially removing all the penalties and confirming my LLC was properly closed. Saved me over $5,000 and countless hours of stress!

I need to publicly eat my words here. After expressing major skepticism about Claimyr, I was desperate enough with my own IRS issue to give it a try. I was absolutely floored when I was connected to an actual IRS agent in about 25 minutes. After nearly a year of failed attempts to reach anyone, the agent I spoke with was able to access my full file, confirm they had received my previous documentation, and explain exactly where things went wrong in processing. She flagged my case for expedited review based on hardship and the fact that they had clearly mishandled my previous submissions. Within 3 weeks, I received a formal abatement notice removing all $3,280 in penalties. I've never been so happy to be wrong about something. If you're stuck in IRS limbo like I was, getting a live person on the phone makes all the difference.

Don't just accept this penalty! I had a similar issue with my construction LLC. Make sure you write "PENALTY ABATEMENT REQUEST - REASONABLE CAUSE" in big letters at the top of your letter. Include the exact date and proof (certified mail receipt if you have it) of when you originally submitted your closure documents. Also mention in your letter that you're experiencing economic hardship due to unemployment, which is a factor the IRS is required to consider. There's specific language about "unable to pay without severe economic hardship" that triggers additional review protections. Lastly, if you still have any documents related to your business closure from 2020, like state dissolution filings or final bank account closure statements, include copies to further prove you legitimately closed the business when you said you did.

Has anyone successfully had penalties waived without hiring a tax pro? I'm in a similar situation with my photography LLC and got hit with $2,600 in penalties even though I filed closure paperwork in 2019. I've been unemployed for 7 months and really can't afford this or a tax professional.

This is exactly the kind of bureaucratic nightmare that makes dealing with the IRS so frustrating. You clearly did everything right - submitted proper closure documentation, followed up multiple times, and kept detailed records. The fact that they're now penalizing you for their own processing delays is completely unfair. I want to echo what others have said about filing Form 843 for penalty abatement. Your situation screams "reasonable cause" - you have documented proof of timely submission, multiple attempts to follow up, and the IRS's own letters acknowledging processing delays. Make sure to emphasize in your abatement request that the penalties resulted from IRS administrative delays, not any failure on your part to comply. Also, don't forget to mention your current unemployment situation when requesting abatement. The IRS has provisions for economic hardship considerations, and being unable to pay without severe financial distress is a valid factor they must consider. Your case has all the elements for a successful abatement - you just need to present them clearly and persistently. Keep fighting this. You shouldn't have to pay penalties for the IRS's own administrative failures.