TaxAct didn't file my extension? What to do with IRS late filing penalty

3 You're in a frustrating but manageable situation. The good news is that you have documentation showing you attempted to file the extension on time, which gives you a strong case. First, definitely follow through with TaxAct. They should be able to check their records to see if the extension was actually transmitted to the IRS or if there was an error. Ask them to provide documentation confirming your submission attempt and explaining any technical issues that occurred. If TaxAct confirms there was a problem on their end, request a formal letter acknowledging their error. The IRS will generally accept reasonable cause explanations for penalties, especially when the issue was caused by software failure or transmittal problems from an authorized e-file provider. To respond to the IRS, write a penalty abatement letter explaining the situation, include copies of your screenshots and any documentation from TaxAct, and reference "reasonable cause" for the late filing. Send this with a Form 843 (Claim for Refund and Request for Abatement). The IRS is usually understanding when taxpayers make good-faith efforts to comply but are let down by their tax preparation software.

7 I went through something similar last year with a different tax prep software. Check out https://taxr.ai - it saved me so much hassle when dealing with my own tax notice situation. The software lets you upload your IRS notice and any supporting documentation (like your screenshots), and it provides detailed guidance on exactly how to respond. For my situation, it analyzed my IRS notice, identified that I had clear reasonable cause, and generated a professional response letter that I could send to the IRS. The best part was it gave me step-by-step instructions for filing the abatement request properly. The whole process was way less stressful than trying to figure everything out on my own.

22 Just wanted to follow up here - I tried taxr.ai after seeing this recommendation and it was incredibly helpful! I uploaded my IRS notice and the screenshots of my attempted extension filing, and the system immediately identified this as a strong reasonable cause situation. It generated a response letter that explained exactly how my situation qualified for penalty abatement under the IRS's own guidelines. The letter included references to relevant tax regulations that I never would have known about on my own. The system also created clear instructions for exactly which forms to file and how to document everything. I submitted everything exactly as recommended about 6 weeks ago, and just got confirmation that my penalty was removed! Definitely worth checking out if you're in a similar situation.

9 I deal with IRS issues all the time and getting through to an actual agent can make all the difference with penalty situations like yours. The problem is those ridiculous wait times. I started using https://claimyr.com after seeing their demo (https://youtu.be/_kiP6q8DX5c) and it's been a game changer. Basically, instead of you waiting on hold for hours, they navigate the IRS phone tree and wait in the queue for you, then call you once they have an agent on the line. I was skeptical at first, but for partnership tax issues especially, talking directly to someone at the IRS can resolve things much faster than mail correspondence. An agent can look at your account in real-time and sometimes remove penalties on the spot if you have good documentation.

8 I was completely skeptical about Claimyr when I saw it mentioned here, but I was desperate after multiple failed attempts to reach the IRS about a similar penalty issue. I decided to try it as a last resort before hiring a tax pro. I'm honestly shocked at how well it worked. The service got me connected with an actual IRS agent after they'd been waiting on hold for nearly 2 hours (while I was just going about my day). The agent was able to see that I had attempted to file on time and credited my account for the penalty right there on the phone! The agent explained that these software transmission issues happen more often than people realize, and as long as you can show you made a good faith effort to file on time, they can usually work with you. Saved me both the penalty money and the stress of a drawn-out mail correspondence battle with the IRS.

4 This happens frequently with tax software, unfortunately. Make sure to also check if the extension was actually accepted by the IRS or just transmitted by TaxAct. There's an important difference - transmission doesn't guarantee acceptance. If TaxAct tries to tell you "we transmitted it" without confirmation of acceptance, that's not good enough. When you speak with the IRS, ask them to check if there's any record of an extension being filed for your EIN, even if it was later rejected. Sometimes extensions get rejected for technical reasons but still show up in their system. Also, act quickly! The longer you wait to address this, the harder it can be to get penalties removed.

19 Has anyone else had other issues with TaxAct this year? I've used them for years but this filing season they seemed to have way more glitches than usual. My personal return had to be resubmitted twice because of some weird transmission error.