Speaking as a Dept of Treasury employee I can tell you that the IRS is composed of real people who want to solve issues. The dramatic Congressional budget cuts over the past 20 years have ravaged the customer service ranks and long waits such as yours are unfortunately common. During the pandemic, IRS employees were also sent home to work, even as paper returns still poured in, so there are significant backlogs there as well.
Typically if you write a letter and attach it to your form it will be read and addressed.
In your post, you state K-1 when the partnership return is a 1065. You also speak of doing the return on Turbo Tax, when Bivio provides the built in software to complete federal partnership returns. I understand your annoyance and frustration, but want to understand if you are addressing a personal 1040 w a K1, or a partnership 1065 prepared with Turbo Tax, or aPartnership 1065 completed w Bivio software.
I recommend you reach out to Ira Smilovitz at Bivio in a one on one email to address privately. Email support@Bivio.com
Best, Irina
> On Sep 24, 2021, at 11:15 AM, Alessandro Squeo via bivio.com <user*8340400001@bivio.com> wrote:
> 
> Are other groups experiencing issues with the IRS?
>
> On Tax year 2020 we filled the 1065 on March 11 (Postmark) They, apparently, received the mail (Receipt stamped March 30th) They assessed our club with a steep penalty. Of course we will contest the penalty via form 843 (Request for Abatement) When I called the IRS via phone, they will check and see if I'm an officer of the club. And, they way the check by requesting to send a copy of the K1 via Fax. I don't have a fax and they want the fax to be sent during the call. Otherwise, they would not speak to me. I submitted the K1 with my return and yet they claim that they do not see the K1 with my 1040. I file my returns with Turbo Tax, and my records show that the K1 is included. Not sure why the IRS does not see the K1. Anyone else experiences issues dealing with the IRS lately. BTW, it takes an average of 1.5 hrs to get an IRS agent on the call, and then they want to end the call quickly without a chance to state your case. Very frustrating!
> Two years in a row dealing with penalties, to the point that I'm considering terminating the partnership and disbanding the club, as the penalties are eating up the little profit or adding to losses. BTW any advice on how to terminate a partnership in terms of the IRS to avoid another year of penalties...
>
> Alessandro
> Chicago Megabuck
Alessandro Squeo on
Hi Irina, to clarify, I use Bivio to prepare and file the 1065 + K1s (Sent certified and return receipt)
In my return I use Turbo Tax and include the K1 e-file.
The IRS is completely backed up and they do not read their correspondence in time. Meanwhile, the penalty's interest accrues. Very frustrating dealing with the IRS in a professional manner. Is going to discourage investing with investment clubs. We might be the only club dealing with issues. I wanted to hear if others are having similar issues with IRS delays and SLooooow processing. Even dealing with verifications over the phone, by providing a fax with your K1. I don't have a fax machine. email is not acceptable to them...
Speaking as a Dept of Treasury employee I can tell you that the IRS is composed of real people who want to solve issues. The dramatic Congressional budget cuts over the past 20 years have ravaged the customer service ranks and long waits such as yours are unfortunately common. During the pandemic, IRS employees were also sent home to work, even as paper returns still poured in, so there are significant backlogs there as well.
Typically if you write a letter and attach it to your form it will be read and addressed.
In your post, you state K-1 when the partnership return is a 1065. You also speak of doing the return on Turbo Tax, when Bivio provides the built in software to complete federal partnership returns. I understand your annoyance and frustration, but want to understand if you are addressing a personal 1040 w a K1, or a partnership 1065 prepared with Turbo Tax, or aPartnership 1065 completed w Bivio software.
I recommend you reach out to Ira Smilovitz at Bivio in a one on one email to address privately. Email support@Bivio.com
Best, Irina
> On Sep 24, 2021, at 11:15 AM, Alessandro Squeo via bivio.com <user*8340400001@bivio.com> wrote:
> 
> Are other groups experiencing issues with the IRS?
>
> On Tax year 2020 we filled the 1065 on March 11 (Postmark) They, apparently, received the mail (Receipt stamped March 30th) They assessed our club with a steep penalty. Of course we will contest the penalty via form 843 (Request for Abatement) When I called the IRS via phone, they will check and see if I'm an officer of the club. And, they way the check by requesting to send a copy of the K1 via Fax. I don't have a fax and they want the fax to be sent during the call. Otherwise, they would not speak to me. I submitted the K1 with my return and yet they claim that they do not see the K1 with my 1040. I file my returns with Turbo Tax, and my records show that the K1 is included. Not sure why the IRS does not see the K1. Anyone else experiences issues dealing with the IRS lately. BTW, it takes an average of 1.5 hrs to get an IRS agent on the call, and then they want to end the call quickly without a chance to state your case. Very frustrating!
> Two years in a row dealing with penalties, to the point that I'm considering terminating the partnership and disbanding the club, as the penalties are eating up the little profit or adding to losses. BTW any advice on how to terminate a partnership in terms of the IRS to avoid another year of penalties...
>
> Alessandro
> Chicago Megabuck
Laurie Frederiksen on
There have been other clubs that have gotten late filing penalty notices for club taxes, but from what you sent, it is still not clear if your notice was related to a club tax form being filed late or a personal tax form that did not include the K-1 information on it. You would not send in a K-1 with your personal tax form. You would just include the information on it on the personal tax form.
As Irina mentioned, the IRS is understaffed and overworked. There is a general recognition that some of the notices may be in error. Unfortunately, if you get one you need to address it.
We are telling clubs to do whatever it takes to get through on the phone to discuss. Written communications will go back into the large pile they are trying to deal with and, as you indicated, you may end up with an increased penalty notice before they find that you responded to the first one.
I haven't heard from anyone else that they had to fax anything when talking to the IRS on the phone. If you have to, there are online fax services you can use if you don't own a fax. It appears most have a free trial period so you might be able to use it without having to pay anything.
Another idea is to call your Congress persons office and see if you can get any help from them.
If you want to send a copy of the letter you received to support@bivio.com, we can review and see if there is anything further we can suggest to you.
Do not send the letter as a response to an email sent to this Club Cafe list.
Laurie Frederiksen Invest with your friends! www.bivio.com
Hi Irina, to clarify, I use Bivio to prepare and file the 1065 + K1s (Sent certified and return receipt)
In my return I use Turbo Tax and include the K1 e-file.
The IRS is completely backed up and they do not read their correspondence in time. Meanwhile, the penalty's interest accrues. Very frustrating dealing with the IRS in a professional manner. Is going to discourage investing with investment clubs. We might be the only club dealing with issues. I wanted to hear if others are having similar issues with IRS delays and SLooooow processing. Even dealing with verifications over the phone, by providing a fax with your K1. I don't have a fax machine. email is not acceptable to them...
Speaking as a Dept of Treasury employee I can tell you that the IRS is composed of real people who want to solve issues. The dramatic Congressional budget cuts over the past 20 years have ravaged the customer service ranks and long waits such as yours are unfortunately common. During the pandemic, IRS employees were also sent home to work, even as paper returns still poured in, so there are significant backlogs there as well.
Typically if you write a letter and attach it to your form it will be read and addressed.
In your post, you state K-1 when the partnership return is a 1065. You also speak of doing the return on Turbo Tax, when Bivio provides the built in software to complete federal partnership returns. I understand your annoyance and frustration, but want to understand if you are addressing a personal 1040 w a K1, or a partnership 1065 prepared with Turbo Tax, or aPartnership 1065 completed w Bivio software.
I recommend you reach out to Ira Smilovitz at Bivio in a one on one email to address privately. Email support@Bivio.com
Best, Irina
> On Sep 24, 2021, at 11:15 AM, Alessandro Squeo via bivio.com <user*8340400001@bivio.com> wrote:
> 
> Are other groups experiencing issues with the IRS?
>
> On Tax year 2020 we filled the 1065 on March 11 (Postmark) They, apparently, received the mail (Receipt stamped March 30th) They assessed our club with a steep penalty. Of course we will contest the penalty via form 843 (Request for Abatement) When I called the IRS via phone, they will check and see if I'm an officer of the club. And, they way the check by requesting to send a copy of the K1 via Fax. I don't have a fax and they want the fax to be sent during the call. Otherwise, they would not speak to me. I submitted the K1 with my return and yet they claim that they do not see the K1 with my 1040. I file my returns with Turbo Tax, and my records show that the K1 is included. Not sure why the IRS does not see the K1. Anyone else experiences issues dealing with the IRS lately. BTW, it takes an average of 1.5 hrs to get an IRS agent on the call, and then they want to end the call quickly without a chance to state your case. Very frustrating!
> Two years in a row dealing with penalties, to the point that I'm considering terminating the partnership and disbanding the club, as the penalties are eating up the little profit or adding to losses. BTW any advice on how to terminate a partnership in terms of the IRS to avoid another year of penalties...
>
> Alessandro
> Chicago Megabuck
Peter Dunkelberger on
I have been asked to fax certified mailing receipts to confirm mailing dates. It worked--threatened penalties were removed. Of course, then I was told they looked at the mailing envelope for the post mark. Why would they not do that first is beyond me.
Peter Dunkelberger
Sumner Stock Selectors Investment Club
On Fri, Sep 24, 2021 at 12:52 PM Laurie Frederiksen <laurie@bivio.biz> wrote:
There have been other clubs that have gotten late filing penalty notices for club taxes, but from what you sent, it is still not clear if your notice was related to a club tax form being filed late or a personal tax form that did not include the K-1 information on it. You would not send in a K-1 with your personal tax form. You would just include the information on it on the personal tax form.
As Irina mentioned, the IRS is understaffed and overworked. There is a general recognition that some of the notices may be in error. Unfortunately, if you get one you need to address it.
We are telling clubs to do whatever it takes to get through on the phone to discuss. Written communications will go back into the large pile they are trying to deal with and, as you indicated, you may end up with an increased penalty notice before they find that you responded to the first one.
I haven't heard from anyone else that they had to fax anything when talking to the IRS on the phone. If you have to, there are online fax services you can use if you don't own a fax. It appears most have a free trial period so you might be able to use it without having to pay anything.
Another idea is to call your Congress persons office and see if you can get any help from them.
If you want to send a copy of the letter you received to support@bivio.com, we can review and see if there is anything further we can suggest to you.
Do not send the letter as a response to an email sent to this Club Cafe list.
Laurie Frederiksen Invest with your friends! www.bivio.com
Hi Irina, to clarify, I use Bivio to prepare and file the 1065 + K1s (Sent certified and return receipt)
In my return I use Turbo Tax and include the K1 e-file.
The IRS is completely backed up and they do not read their correspondence in time. Meanwhile, the penalty's interest accrues. Very frustrating dealing with the IRS in a professional manner. Is going to discourage investing with investment clubs. We might be the only club dealing with issues. I wanted to hear if others are having similar issues with IRS delays and SLooooow processing. Even dealing with verifications over the phone, by providing a fax with your K1. I don't have a fax machine. email is not acceptable to them...
Speaking as a Dept of Treasury employee I can tell you that the IRS is composed of real people who want to solve issues. The dramatic Congressional budget cuts over the past 20 years have ravaged the customer service ranks and long waits such as yours are unfortunately common. During the pandemic, IRS employees were also sent home to work, even as paper returns still poured in, so there are significant backlogs there as well.
Typically if you write a letter and attach it to your form it will be read and addressed.
In your post, you state K-1 when the partnership return is a 1065. You also speak of doing the return on Turbo Tax, when Bivio provides the built in software to complete federal partnership returns. I understand your annoyance and frustration, but want to understand if you are addressing a personal 1040 w a K1, or a partnership 1065 prepared with Turbo Tax, or aPartnership 1065 completed w Bivio software.
I recommend you reach out to Ira Smilovitz at Bivio in a one on one email to address privately. Email support@Bivio.com
Best, Irina
> On Sep 24, 2021, at 11:15 AM, Alessandro Squeo via bivio.com <user*8340400001@bivio.com> wrote:
> 
> Are other groups experiencing issues with the IRS?
>
> On Tax year 2020 we filled the 1065 on March 11 (Postmark) They, apparently, received the mail (Receipt stamped March 30th) They assessed our club with a steep penalty. Of course we will contest the penalty via form 843 (Request for Abatement) When I called the IRS via phone, they will check and see if I'm an officer of the club. And, they way the check by requesting to send a copy of the K1 via Fax. I don't have a fax and they want the fax to be sent during the call. Otherwise, they would not speak to me. I submitted the K1 with my return and yet they claim that they do not see the K1 with my 1040. I file my returns with Turbo Tax, and my records show that the K1 is included. Not sure why the IRS does not see the K1. Anyone else experiences issues dealing with the IRS lately. BTW, it takes an average of 1.5 hrs to get an IRS agent on the call, and then they want to end the call quickly without a chance to state your case. Very frustrating!
> Two years in a row dealing with penalties, to the point that I'm considering terminating the partnership and disbanding the club, as the penalties are eating up the little profit or adding to losses. BTW any advice on how to terminate a partnership in terms of the IRS to avoid another year of penalties...
>
> Alessandro
> Chicago Megabuck
Alessandro Squeo on
The penalty CP162 is for late filing that was sent to the club. I have the postmark receipt with the USPS as of March 11th. They received it on March 30th.
The penalty was issued to the club filing late. I called 3 times this week, long wait times. Each call they ask for my SS and they check for my 1040 and the K1 in that return as proof of who I'm by asking me to send a copy of my K1 via fax. They claim that they do not see the K1 with the club's filling, nor in my 1040, which every year I sent included with the 1065 and also part of my 1040. I Would not mind sending a copy of the K1. The problem is that I do not have a fax machine. And, they would not let me fax it from at Kinkos at later hour or day. They want the fax immediately while on the phone. This is just to verify that you're who you say you are. There is no other option. I'm very frustrated with them.
Thanks everyone for your help, especially Laurie.
It seems that the only recourse is to send snail mail with form 843
Alessandro
On Fri, Sep 24, 2021 at 11:51 AM Laurie Frederiksen <laurie@bivio.biz> wrote:
There have been other clubs that have gotten late filing penalty notices for club taxes, but from what you sent, it is still not clear if your notice was related to a club tax form being filed late or a personal tax form that did not include the K-1 information on it. You would not send in a K-1 with your personal tax form. You would just include the information on it on the personal tax form.
As Irina mentioned, the IRS is understaffed and overworked. There is a general recognition that some of the notices may be in error. Unfortunately, if you get one you need to address it.
We are telling clubs to do whatever it takes to get through on the phone to discuss. Written communications will go back into the large pile they are trying to deal with and, as you indicated, you may end up with an increased penalty notice before they find that you responded to the first one.
I haven't heard from anyone else that they had to fax anything when talking to the IRS on the phone. If you have to, there are online fax services you can use if you don't own a fax. It appears most have a free trial period so you might be able to use it without having to pay anything.
Another idea is to call your Congress persons office and see if you can get any help from them.
If you want to send a copy of the letter you received to support@bivio.com, we can review and see if there is anything further we can suggest to you.
Do not send the letter as a response to an email sent to this Club Cafe list.
Laurie Frederiksen Invest with your friends! www.bivio.com
Hi Irina, to clarify, I use Bivio to prepare and file the 1065 + K1s (Sent certified and return receipt)
In my return I use Turbo Tax and include the K1 e-file.
The IRS is completely backed up and they do not read their correspondence in time. Meanwhile, the penalty's interest accrues. Very frustrating dealing with the IRS in a professional manner. Is going to discourage investing with investment clubs. We might be the only club dealing with issues. I wanted to hear if others are having similar issues with IRS delays and SLooooow processing. Even dealing with verifications over the phone, by providing a fax with your K1. I don't have a fax machine. email is not acceptable to them...
Speaking as a Dept of Treasury employee I can tell you that the IRS is composed of real people who want to solve issues. The dramatic Congressional budget cuts over the past 20 years have ravaged the customer service ranks and long waits such as yours are unfortunately common. During the pandemic, IRS employees were also sent home to work, even as paper returns still poured in, so there are significant backlogs there as well.
Typically if you write a letter and attach it to your form it will be read and addressed.
In your post, you state K-1 when the partnership return is a 1065. You also speak of doing the return on Turbo Tax, when Bivio provides the built in software to complete federal partnership returns. I understand your annoyance and frustration, but want to understand if you are addressing a personal 1040 w a K1, or a partnership 1065 prepared with Turbo Tax, or aPartnership 1065 completed w Bivio software.
I recommend you reach out to Ira Smilovitz at Bivio in a one on one email to address privately. Email support@Bivio.com
Best, Irina
> On Sep 24, 2021, at 11:15 AM, Alessandro Squeo via bivio.com <user*8340400001@bivio.com> wrote:
> 
> Are other groups experiencing issues with the IRS?
>
> On Tax year 2020 we filled the 1065 on March 11 (Postmark) They, apparently, received the mail (Receipt stamped March 30th) They assessed our club with a steep penalty. Of course we will contest the penalty via form 843 (Request for Abatement) When I called the IRS via phone, they will check and see if I'm an officer of the club. And, they way the check by requesting to send a copy of the K1 via Fax. I don't have a fax and they want the fax to be sent during the call. Otherwise, they would not speak to me. I submitted the K1 with my return and yet they claim that they do not see the K1 with my 1040. I file my returns with Turbo Tax, and my records show that the K1 is included. Not sure why the IRS does not see the K1. Anyone else experiences issues dealing with the IRS lately. BTW, it takes an average of 1.5 hrs to get an IRS agent on the call, and then they want to end the call quickly without a chance to state your case. Very frustrating!
> Two years in a row dealing with penalties, to the point that I'm considering terminating the partnership and disbanding the club, as the penalties are eating up the little profit or adding to losses. BTW any advice on how to terminate a partnership in terms of the IRS to avoid another year of penalties...
>
> Alessandro
> Chicago Megabuck
Alessandro Squeo on
Thanks Peter, obviously you do have a fax machine.
I have been asked to fax certified mailing receipts to confirm mailing dates. It worked--threatened penalties were removed. Of course, then I was told they looked at the mailing envelope for the post mark. Why would they not do that first is beyond me.
Peter Dunkelberger
Sumner Stock Selectors Investment Club
On Fri, Sep 24, 2021 at 12:52 PM Laurie Frederiksen <laurie@bivio.biz> wrote:
There have been other clubs that have gotten late filing penalty notices for club taxes, but from what you sent, it is still not clear if your notice was related to a club tax form being filed late or a personal tax form that did not include the K-1 information on it. You would not send in a K-1 with your personal tax form. You would just include the information on it on the personal tax form.
As Irina mentioned, the IRS is understaffed and overworked. There is a general recognition that some of the notices may be in error. Unfortunately, if you get one you need to address it.
We are telling clubs to do whatever it takes to get through on the phone to discuss. Written communications will go back into the large pile they are trying to deal with and, as you indicated, you may end up with an increased penalty notice before they find that you responded to the first one.
I haven't heard from anyone else that they had to fax anything when talking to the IRS on the phone. If you have to, there are online fax services you can use if you don't own a fax. It appears most have a free trial period so you might be able to use it without having to pay anything.
Another idea is to call your Congress persons office and see if you can get any help from them.
If you want to send a copy of the letter you received to support@bivio.com, we can review and see if there is anything further we can suggest to you.
Do not send the letter as a response to an email sent to this Club Cafe list.
Laurie Frederiksen Invest with your friends! www.bivio.com
Hi Irina, to clarify, I use Bivio to prepare and file the 1065 + K1s (Sent certified and return receipt)
In my return I use Turbo Tax and include the K1 e-file.
The IRS is completely backed up and they do not read their correspondence in time. Meanwhile, the penalty's interest accrues. Very frustrating dealing with the IRS in a professional manner. Is going to discourage investing with investment clubs. We might be the only club dealing with issues. I wanted to hear if others are having similar issues with IRS delays and SLooooow processing. Even dealing with verifications over the phone, by providing a fax with your K1. I don't have a fax machine. email is not acceptable to them...
Speaking as a Dept of Treasury employee I can tell you that the IRS is composed of real people who want to solve issues. The dramatic Congressional budget cuts over the past 20 years have ravaged the customer service ranks and long waits such as yours are unfortunately common. During the pandemic, IRS employees were also sent home to work, even as paper returns still poured in, so there are significant backlogs there as well.
Typically if you write a letter and attach it to your form it will be read and addressed.
In your post, you state K-1 when the partnership return is a 1065. You also speak of doing the return on Turbo Tax, when Bivio provides the built in software to complete federal partnership returns. I understand your annoyance and frustration, but want to understand if you are addressing a personal 1040 w a K1, or a partnership 1065 prepared with Turbo Tax, or aPartnership 1065 completed w Bivio software.
I recommend you reach out to Ira Smilovitz at Bivio in a one on one email to address privately. Email support@Bivio.com
Best, Irina
> On Sep 24, 2021, at 11:15 AM, Alessandro Squeo via bivio.com <user*8340400001@bivio.com> wrote:
> 
> Are other groups experiencing issues with the IRS?
>
> On Tax year 2020 we filled the 1065 on March 11 (Postmark) They, apparently, received the mail (Receipt stamped March 30th) They assessed our club with a steep penalty. Of course we will contest the penalty via form 843 (Request for Abatement) When I called the IRS via phone, they will check and see if I'm an officer of the club. And, they way the check by requesting to send a copy of the K1 via Fax. I don't have a fax and they want the fax to be sent during the call. Otherwise, they would not speak to me. I submitted the K1 with my return and yet they claim that they do not see the K1 with my 1040. I file my returns with Turbo Tax, and my records show that the K1 is included. Not sure why the IRS does not see the K1. Anyone else experiences issues dealing with the IRS lately. BTW, it takes an average of 1.5 hrs to get an IRS agent on the call, and then they want to end the call quickly without a chance to state your case. Very frustrating!
> Two years in a row dealing with penalties, to the point that I'm considering terminating the partnership and disbanding the club, as the penalties are eating up the little profit or adding to losses. BTW any advice on how to terminate a partnership in terms of the IRS to avoid another year of penalties...
>
> Alessandro
> Chicago Megabuck
Richard Williams on
We had to go through our congressional reps local office to get hooked up with a Tax Advocate to get our 2019 refund back on our joint return. It took about six weeks but they got it done (two years after we filed).
The penalty CP162 is for late filing that was sent to the club. I have the postmark receipt with the USPS as of March 11th. They received it on March 30th.
The penalty was issued to the club filing late. I called 3 times this week, long wait times. Each call they ask for my SS and they check for my 1040 and the K1 in that return as proof of who I'm by asking me to send a copy of my K1 via fax. They claim that they do not see the K1 with the club's filling, nor in my 1040, which every year I sent included with the 1065 and also part of my 1040. I Would not mind sending a copy of the K1. The problem is that I do not have a fax machine. And, they would not let me fax it from at Kinkos at later hour or day. They want the fax immediately while on the phone. This is just to verify that you're who you say you are. There is no other option. I'm very frustrated with them.
Thanks everyone for your help, especially Laurie.
It seems that the only recourse is to send snail mail with form 843
Alessandro
On Fri, Sep 24, 2021 at 11:51 AM Laurie Frederiksen <laurie@bivio.biz> wrote:
There have been other clubs that have gotten late filing penalty notices for club taxes, but from what you sent, it is still not clear if your notice was related to a club tax form being filed late or a personal tax form that did not include the K-1 information on it. You would not send in a K-1 with your personal tax form. You would just include the information on it on the personal tax form.
As Irina mentioned, the IRS is understaffed and overworked. There is a general recognition that some of the notices may be in error. Unfortunately, if you get one you need to address it.
We are telling clubs to do whatever it takes to get through on the phone to discuss. Written communications will go back into the large pile they are trying to deal with and, as you indicated, you may end up with an increased penalty notice before they find that you responded to the first one.
I haven't heard from anyone else that they had to fax anything when talking to the IRS on the phone. If you have to, there are online fax services you can use if you don't own a fax. It appears most have a free trial period so you might be able to use it without having to pay anything.
Another idea is to call your Congress persons office and see if you can get any help from them.
If you want to send a copy of the letter you received to support@bivio.com, we can review and see if there is anything further we can suggest to you.
Do not send the letter as a response to an email sent to this Club Cafe list.
Laurie Frederiksen Invest with your friends! www.bivio.com
Hi Irina, to clarify, I use Bivio to prepare and file the 1065 + K1s (Sent certified and return receipt)
In my return I use Turbo Tax and include the K1 e-file.
The IRS is completely backed up and they do not read their correspondence in time. Meanwhile, the penalty's interest accrues. Very frustrating dealing with the IRS in a professional manner. Is going to discourage investing with investment clubs. We might be the only club dealing with issues. I wanted to hear if others are having similar issues with IRS delays and SLooooow processing. Even dealing with verifications over the phone, by providing a fax with your K1. I don't have a fax machine. email is not acceptable to them...
Speaking as a Dept of Treasury employee I can tell you that the IRS is composed of real people who want to solve issues. The dramatic Congressional budget cuts over the past 20 years have ravaged the customer service ranks and long waits such as yours are unfortunately common. During the pandemic, IRS employees were also sent home to work, even as paper returns still poured in, so there are significant backlogs there as well.
Typically if you write a letter and attach it to your form it will be read and addressed.
In your post, you state K-1 when the partnership return is a 1065. You also speak of doing the return on Turbo Tax, when Bivio provides the built in software to complete federal partnership returns. I understand your annoyance and frustration, but want to understand if you are addressing a personal 1040 w a K1, or a partnership 1065 prepared with Turbo Tax, or aPartnership 1065 completed w Bivio software.
I recommend you reach out to Ira Smilovitz at Bivio in a one on one email to address privately. Email support@Bivio.com
Best, Irina
> On Sep 24, 2021, at 11:15 AM, Alessandro Squeo via bivio.com <user*8340400001@bivio.com> wrote:
> 
> Are other groups experiencing issues with the IRS?
>
> On Tax year 2020 we filled the 1065 on March 11 (Postmark) They, apparently, received the mail (Receipt stamped March 30th) They assessed our club with a steep penalty. Of course we will contest the penalty via form 843 (Request for Abatement) When I called the IRS via phone, they will check and see if I'm an officer of the club. And, they way the check by requesting to send a copy of the K1 via Fax. I don't have a fax and they want the fax to be sent during the call. Otherwise, they would not speak to me. I submitted the K1 with my return and yet they claim that they do not see the K1 with my 1040. I file my returns with Turbo Tax, and my records show that the K1 is included. Not sure why the IRS does not see the K1. Anyone else experiences issues dealing with the IRS lately. BTW, it takes an average of 1.5 hrs to get an IRS agent on the call, and then they want to end the call quickly without a chance to state your case. Very frustrating!
> Two years in a row dealing with penalties, to the point that I'm considering terminating the partnership and disbanding the club, as the penalties are eating up the little profit or adding to losses. BTW any advice on how to terminate a partnership in terms of the IRS to avoid another year of penalties...
>
> Alessandro
> Chicago Megabuck
I have been asked to fax certified mailing receipts to confirm mailing dates. It worked--threatened penalties were removed. Of course, then I was told they looked at the mailing envelope for the post mark. Why would they not do that first is beyond me.
Peter Dunkelberger
Sumner Stock Selectors Investment Club
On Fri, Sep 24, 2021 at 12:52 PM Laurie Frederiksen <laurie@bivio.biz> wrote:
There have been other clubs that have gotten late filing penalty notices for club taxes, but from what you sent, it is still not clear if your notice was related to a club tax form being filed late or a personal tax form that did not include the K-1 information on it. You would not send in a K-1 with your personal tax form. You would just include the information on it on the personal tax form.
As Irina mentioned, the IRS is understaffed and overworked. There is a general recognition that some of the notices may be in error. Unfortunately, if you get one you need to address it.
We are telling clubs to do whatever it takes to get through on the phone to discuss. Written communications will go back into the large pile they are trying to deal with and, as you indicated, you may end up with an increased penalty notice before they find that you responded to the first one.
I haven't heard from anyone else that they had to fax anything when talking to the IRS on the phone. If you have to, there are online fax services you can use if you don't own a fax. It appears most have a free trial period so you might be able to use it without having to pay anything.
Another idea is to call your Congress persons office and see if you can get any help from them.
If you want to send a copy of the letter you received to support@bivio.com, we can review and see if there is anything further we can suggest to you.
Do not send the letter as a response to an email sent to this Club Cafe list.
Laurie Frederiksen Invest with your friends! www.bivio.com
Hi Irina, to clarify, I use Bivio to prepare and file the 1065 + K1s (Sent certified and return receipt)
In my return I use Turbo Tax and include the K1 e-file.
The IRS is completely backed up and they do not read their correspondence in time. Meanwhile, the penalty's interest accrues. Very frustrating dealing with the IRS in a professional manner. Is going to discourage investing with investment clubs. We might be the only club dealing with issues. I wanted to hear if others are having similar issues with IRS delays and SLooooow processing. Even dealing with verifications over the phone, by providing a fax with your K1. I don't have a fax machine. email is not acceptable to them...
Speaking as a Dept of Treasury employee I can tell you that the IRS is composed of real people who want to solve issues. The dramatic Congressional budget cuts over the past 20 years have ravaged the customer service ranks and long waits such as yours are unfortunately common. During the pandemic, IRS employees were also sent home to work, even as paper returns still poured in, so there are significant backlogs there as well.
Typically if you write a letter and attach it to your form it will be read and addressed.
In your post, you state K-1 when the partnership return is a 1065. You also speak of doing the return on Turbo Tax, when Bivio provides the built in software to complete federal partnership returns. I understand your annoyance and frustration, but want to understand if you are addressing a personal 1040 w a K1, or a partnership 1065 prepared with Turbo Tax, or aPartnership 1065 completed w Bivio software.
I recommend you reach out to Ira Smilovitz at Bivio in a one on one email to address privately. Email support@Bivio.com
Best, Irina
> On Sep 24, 2021, at 11:15 AM, Alessandro Squeo via bivio.com <user*8340400001@bivio.com> wrote:
> 
> Are other groups experiencing issues with the IRS?
>
> On Tax year 2020 we filled the 1065 on March 11 (Postmark) They, apparently, received the mail (Receipt stamped March 30th) They assessed our club with a steep penalty. Of course we will contest the penalty via form 843 (Request for Abatement) When I called the IRS via phone, they will check and see if I'm an officer of the club. And, they way the check by requesting to send a copy of the K1 via Fax. I don't have a fax and they want the fax to be sent during the call. Otherwise, they would not speak to me. I submitted the K1 with my return and yet they claim that they do not see the K1 with my 1040. I file my returns with Turbo Tax, and my records show that the K1 is included. Not sure why the IRS does not see the K1. Anyone else experiences issues dealing with the IRS lately. BTW, it takes an average of 1.5 hrs to get an IRS agent on the call, and then they want to end the call quickly without a chance to state your case. Very frustrating!
> Two years in a row dealing with penalties, to the point that I'm considering terminating the partnership and disbanding the club, as the penalties are eating up the little profit or adding to losses. BTW any advice on how to terminate a partnership in terms of the IRS to avoid another year of penalties...
>
> Alessandro
> Chicago Megabuck
Charles Bard on
Alessandro,
Is it possible the agents you are speaking with don't understand the K1s are part of the 1065? If that is the case they are looking for a separate document they cannot find. I'd try again and identify which page of the 1065 is your K1.
Charles Bard
From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of Alessandro Squeo via bivio.com Sent: Friday, September 24, 2021 1:16 PM To: club_cafe@bivio.com Subject: Re: [club_cafe] IRS Issues
The penalty CP162 is for late filing that was sent to the club. I have the postmark receipt with the USPS as of March 11th. They received it on March 30th.
The penalty was issued to the club filing late. I called 3 times this week, long wait times. Each call they ask for my SS and they check for my 1040 and the K1 in that return as proof of who I'm by asking me to send a copy of my K1 via fax. They claim that they do not see the K1 with the club's filling, nor in my 1040, which every year I sent included with the 1065 and also part of my 1040. I Would not mind sending a copy of the K1. The problem is that I do not have a fax machine. And, they would not let me fax it from at Kinkos at later hour or day. They want the fax immediately while on the phone. This is just to verify that you're who you say you are. There is no other option. I'm very frustrated with them.
Thanks everyone for your help, especially Laurie.
It seems that the only recourse is to send snail mail with form 843
Alessandro
On Fri, Sep 24, 2021 at 11:51 AM Laurie Frederiksen <laurie@bivio.biz> wrote:
There have been other clubs that have gotten late filing penalty notices for club taxes, but from what you sent, it is still not clear if your notice was related to a club tax form being filed late or a personal tax form that did not include the K-1 information on it. You would not send in a K-1 with your personal tax form. You would just include the information on it on the personal tax form.
As Irina mentioned, the IRS is understaffed and overworked. There is a general recognition that some of the notices may be in error. Unfortunately, if you get one you need to address it.
We are telling clubs to do whatever it takes to get through on the phone to discuss. Written communications will go back into the large pile they are trying to deal with and, as you indicated, you may end up with an increased penalty notice before they find that you responded to the first one.
I haven't heard from anyone else that they had to fax anything when talking to the IRS on the phone. If you have to, there are online fax services you can use if you don't own a fax. It appears most have a free trial period so you might be able to use it without having to pay anything.
Another idea is to call your Congress persons office and see if you can get any help from them.
If you want to send a copy of the letter you received to support@bivio.com, we can review and see if there is anything further we can suggest to you.
Do not send the letter as a response to an email sent to this Club Cafe list.
Laurie Frederiksen Invest with your friends! www.bivio.com
Hi Irina, to clarify, I use Bivio to prepare and file the 1065 + K1s (Sent certified and return receipt)
In my return I use Turbo Tax and include the K1 e-file.
The IRS is completely backed up and they do not read their correspondence in time. Meanwhile, the penalty's interest accrues. Very frustrating dealing with the IRS in a professional manner. Is going to discourage investing with investment clubs. We might be the only club dealing with issues. I wanted to hear if others are having similar issues with IRS delays and SLooooow processing. Even dealing with verifications over the phone, by providing a fax with your K1. I don't have a fax machine. email is not acceptable to them...
Speaking as a Dept of Treasury employee I can tell you that the IRS is composed of real people who want to solve issues. The dramatic Congressional budget cuts over the past 20 years have ravaged the customer service ranks and long waits such as yours are unfortunately common. During the pandemic, IRS employees were also sent home to work, even as paper returns still poured in, so there are significant backlogs there as well.
Typically if you write a letter and attach it to your form it will be read and addressed.
In your post, you state K-1 when the partnership return is a 1065. You also speak of doing the return on Turbo Tax, when Bivio provides the built in software to complete federal partnership returns. I understand your annoyance and frustration, but want to understand if you are addressing a personal 1040 w a K1, or a partnership 1065 prepared with Turbo Tax, or aPartnership 1065 completed w Bivio software.
I recommend you reach out to Ira Smilovitz at Bivio in a one on one email to address privately. Email support@Bivio.com
Best, Irina
> On Sep 24, 2021, at 11:15 AM, Alessandro Squeo via bivio.com <user*8340400001@bivio.com> wrote: >  > Are other groups experiencing issues with the IRS? > > On Tax year 2020 we filled the 1065 on March 11 (Postmark) They, apparently, received the mail (Receipt stamped March 30th) They assessed our club with a steep penalty. Of course we will contest the penalty via form 843 (Request for Abatement) When I called the IRS via phone, they will check and see if I'm an officer of the club. And, they way the check by requesting to send a copy of the K1 via Fax. I don't have a fax and they want the fax to be sent during the call. Otherwise, they would not speak to me. I submitted the K1 with my return and yet they claim that they do not see the K1 with my 1040. I file my returns with Turbo Tax, and my records show that the K1 is included. Not sure why the IRS does not see the K1. Anyone else experiences issues dealing with the IRS lately. BTW, it takes an average of 1.5 hrs to get an IRS agent on the call, and then they want to end the call quickly without a chance to state your case. Very frustrating! > Two years in a row dealing with penalties, to the point that I'm considering terminating the partnership and disbanding the club, as the penalties are eating up the little profit or adding to losses. BTW any advice on how to terminate a partnership in terms of the IRS to avoid another year of penalties... > > Alessandro > Chicago Megabuck
sirjones on
Did your club not "Opt Out" of the new tax law that will cause the IRS to penalize an individual instead of the club, due to tax filing errors? Something to consider.
Kevin
Sent from my Verizon, Samsung Galaxy smartphone
-------- Original message --------
From: "Charles Bard via bivio.com" <user*29623800001@bivio.com>
Date: 9/24/21 11:11 AM (GMT-08:00)
To: club_cafe@bivio.com
Subject: RE: [club_cafe] IRS Issues
Alessandro,
Is it possible the agents you are speaking with don't understand the K1s are part of the 1065? If that is the case they are looking for a separate document they cannot find. I'd try again and identify which page of the 1065 is your K1.
Charles Bard
From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of Alessandro Squeo via bivio.com Sent: Friday, September 24, 2021 1:16 PM To: club_cafe@bivio.com Subject: Re: [club_cafe] IRS Issues
The penalty CP162 is for late filing that was sent to the club. I have the postmark receipt with the USPS as of March 11th. They received it on March 30th.
The penalty was issued to the club filing late. I called 3 times this week, long wait times. Each call they ask for my SS and they check for my 1040 and the K1 in that return as proof of who I'm by asking me to send a copy of my K1 via fax. They claim that they do not see the K1 with the club's filling, nor in my 1040, which every year I sent included with the 1065 and also part of my 1040. I Would not mind sending a copy of the K1. The problem is that I do not have a fax machine. And, they would not let me fax it from at Kinkos at later hour or day. They want the fax immediately while on the phone. This is just to verify that you're who you say you are. There is no other option. I'm very frustrated with them.
Thanks everyone for your help, especially Laurie.
It seems that the only recourse is to send snail mail with form 843
Alessandro
On Fri, Sep 24, 2021 at 11:51 AM Laurie Frederiksen <laurie@bivio.biz> wrote:
There have been other clubs that have gotten late filing penalty notices for club taxes, but from what you sent, it is still not clear if your notice was related to a club tax form being filed late or a personal tax form that did not include the K-1 information on it. You would not send in a K-1 with your personal tax form. You would just include the information on it on the personal tax form.
As Irina mentioned, the IRS is understaffed and overworked. There is a general recognition that some of the notices may be in error. Unfortunately, if you get one you need to address it.
We are telling clubs to do whatever it takes to get through on the phone to discuss. Written communications will go back into the large pile they are trying to deal with and, as you indicated, you may end up with an increased penalty notice before they find that you responded to the first one.
I haven't heard from anyone else that they had to fax anything when talking to the IRS on the phone. If you have to, there are online fax services you can use if you don't own a fax. It appears most have a free trial period so you might be able to use it without having to pay anything.
Another idea is to call your Congress persons office and see if you can get any help from them.
If you want to send a copy of the letter you received to support@bivio.com, we can review and see if there is anything further we can suggest to you.
Do not send the letter as a response to an email sent to this Club Cafe list.
Laurie Frederiksen Invest with your friends! www.bivio.com
Hi Irina, to clarify, I use Bivio to prepare and file the 1065 + K1s (Sent certified and return receipt)
In my return I use Turbo Tax and include the K1 e-file.
The IRS is completely backed up and they do not read their correspondence in time. Meanwhile, the penalty's interest accrues. Very frustrating dealing with the IRS in a professional manner. Is going to discourage investing with investment clubs. We might be the only club dealing with issues. I wanted to hear if others are having similar issues with IRS delays and SLooooow processing. Even dealing with verifications over the phone, by providing a fax with your K1. I don't have a fax machine. email is not acceptable to them...
Speaking as a Dept of Treasury employee I can tell you that the IRS is composed of real people who want to solve issues. The dramatic Congressional budget cuts over the past 20 years have ravaged the customer service ranks and long waits such as yours are unfortunately common. During the pandemic, IRS employees were also sent home to work, even as paper returns still poured in, so there are significant backlogs there as well.
Typically if you write a letter and attach it to your form it will be read and addressed.
In your post, you state K-1 when the partnership return is a 1065. You also speak of doing the return on Turbo Tax, when Bivio provides the built in software to complete federal partnership returns. I understand your annoyance and frustration, but want to understand if you are addressing a personal 1040 w a K1, or a partnership 1065 prepared with Turbo Tax, or aPartnership 1065 completed w Bivio software.
I recommend you reach out to Ira Smilovitz at Bivio in a one on one email to address privately. Email support@Bivio.com
Best, Irina
> On Sep 24, 2021, at 11:15 AM, Alessandro Squeo via bivio.com <user*8340400001@bivio.com> wrote: >  > Are other groups experiencing issues with the IRS? > > On Tax year 2020 we filled the 1065 on March 11 (Postmark) They, apparently, received the mail (Receipt stamped March 30th) They assessed our club with a steep penalty. Of course we will contest the penalty via form 843 (Request for Abatement) When I called the IRS via phone, they will check and see if I'm an officer of the club. And, they way the check by requesting to send a copy of the K1 via Fax. I don't have a fax and they want the fax to be sent during the call. Otherwise, they would not speak to me. I submitted the K1 with my return and yet they claim that they do not see the K1 with my 1040. I file my returns with Turbo Tax, and my records show that the K1 is included. Not sure why the IRS does not see the K1. Anyone else experiences issues dealing with the IRS lately. BTW, it takes an average of 1.5 hrs to get an IRS agent on the call, and then they want to end the call quickly without a chance to state your case. Very frustrating! > Two years in a row dealing with penalties, to the point that I'm considering terminating the partnership and disbanding the club, as the penalties are eating up the little profit or adding to losses. BTW any advice on how to terminate a partnership in terms of the IRS to avoid another year of penalties... > > Alessandro > Chicago Megabuck