IRS charged me 1120S/1065 late penalty even I filed extension

Forum|Forum|2 years ago
November 9, 2023
4 replies
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Dear experts,

I filed two extension forms 7004 to request automatic extension for my 1120S and 1065 filings (two separate small business) in January. However, I haven't heard any response from them. I filed my 1120S and 1065 in early September (before the extension due date). However, I got IRS letters a few days ago that they charged me late penalties for both businesses! This sounds insane!

I did not mail the two 7004 forms using registered mail/certified mail, instead I mailed them using regular mails, but I kept a post office receipt. My wife tried to call IRS but the receptionist appeared rude and refused her explanation. She said even you file extensions, IRS would need to approve them.

What are my best approach to handle this?

Thank you for your advice!

jxu98

TurboTax Business Windows

Best answer by Rick19744

My recommendation is to write a letter and send the letter certified mail return receipt requested.

In the letter, explain that you in fact sent in extensions for each tax return; this assumes your extensions were timely.

Your facts don't provide when you sent the extensions, so that may be an issue.

Include a copy of what ever you have from the USPS to validate the date you sent in the extensions.

The letter should be factual, respectful and indicate based on the facts, you request the penalties be removed.

Anonymous_

Employee

Not report 1099G on 1040 (intuit.com)

Mike9241

the answer the other day. Turbotax can do nothing.

https://ttlc.intuit.com/community/taxes/discussion/file-form-7004-for-1120s-1065-but-still-got-late-filing-penalty-from-irs/00/3107974

or you can try calling the IRS again at the number on the notices. you may get a more receptive agent. you may also try contacting the tax advocate service in your state.

https://www.taxpayeradvocate.irs.gov/can-tas-help-me-with-my-tax-issue/

Jxu98Author

Thanks for the advice. I sent a letter and will see their response.

Rick19744Answer

Employee

My recommendation is to write a letter and send the letter certified mail return receipt requested.

In the letter, explain that you in fact sent in extensions for each tax return; this assumes your extensions were timely.

Your facts don't provide when you sent the extensions, so that may be an issue.

Include a copy of what ever you have from the USPS to validate the date you sent in the extensions.

The letter should be factual, respectful and indicate based on the facts, you request the penalties be removed.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.

Jxu98Author

Thanks. I mailed the letter asking for abatement of the penalty. Not sure if IRS will process my request on time or they may add more later penalty if they did not process my request on time?

Carl11_2

Employee

Just a wild guess, but were you notified that the extensions were approved?

Rick19744

Employee

The extension is automatic and the IRS typically will not respond with an approval letter.

See the following from the instructions:

Use Form 7004 to request an automatic extension of time to file certain business income tax, information, and other returns. The extension will be granted if you complete Form 7004 properly, make a proper estimate of the tax (if applicable), file Form 7004 by the due date of the return for which the extension is requested, and pay any tax that is due.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.