Trouble with the IRS
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Trouble with the IRS On Monday I received a letter from the IRS stated we owed $2200.00 for a late arrival of our return. Long story short: It was mailed on March 9,2023. I sent it with a return request. They got it on the 23rd of March. I went to the USPS website and copied the tracking info which was leaving my city on the 9th and traveling to another city then got stuck in a hold facility in Kansas City. I tried contacting them by phone. Because our club is over 20 years old our Tax ID # was gotten 20 plus years ago. They will not discuss this with me because I was not a member when the ID number was issued. Does anyone have any ideas how we should proceed. Do we need to get a new id # issued? I sent a letter to them with copies of the tracking etc. but I am concerned about the ID number--- Stephanie Kissel Dividend Divas IRS can't discuss details of a tax return with just anyone. You can speak to them in general terms. WE had an issue with late filing last year. We sent proof of timely filing. Your EIN number is forever for the club. Don't change it. That would result in more headaches. On Thu, May 4, 2023 at 10:07â¯PM Stephanie Kissel via bivio.com <user*26670400001@bivio.com> wrote: On Monday I received a letter from the IRS stated we owed I would call IRS, and then ask for a forbearance. Use exactly that term. Then, explain why you are asking for a forbearance. Explain what went wrong. After making you feel really uncomfortable, for a few minutes, the IRS person might ask you to describe the type of organization you represent. Tell the person that your investment club is a partnership. You must say, partnership, and also tell the person that you are a partner. At that point, the IRS person is likely to nullify your late-filing penalty, and then warn you to not let this happen again. This is what my investment club did, a few years ago, when the tax-filing deadline for investment clubs changed from mid-April to mid-March. Our penalty would have been $800, and I was literally sweating, during the telephone call. -Lester- 4 May 2023 =========================================================================
On Thursday, May 4, 2023 at 07:16:41 PM PDT, Anna Murray via bivio.com <user*32616600001@bivio.com> wrote:
IRS can't discuss details of a tax return with just anyone. You can speak to them in general terms. WE had an issue with late filing last year. We sent proof of timely filing. Your EIN number is forever for the club. Don't change it. That would result in more headaches. On Monday I received a letter from the IRS stated we owed If I am not mistaken, mailing by the due date is sufficient in meeting the filing deadline. Supply proof of that and even the tracking information. That worked for me. Robin Helen Keller was once asked if there was anything that could have been worse than losing her sight. Keller replied: "Yes, I could have lost my vision." On Thu, May 4, 2023 at 10:08â¯PM Stephanie Kissel via bivio.com <user*26670400001@bivio.com> wrote: On Monday I received a letter from the IRS stated we owed You may have received bad information from the agent you spoke with. It doesn't matter if you, or anyone else, was a member of the club 20 years ago. The only two things that matter are 1) are you the designated Partnership Representative if your club is subject to CPAR, or 2) are you a member of the club (did you receive a K-1?) if the club elected out of CPAR? Even if the agent refuses to provide information to you about the club's return, you can always provide information to the agent. You can request a fax number where you can fax the evidence that the return was timely filed and fax a copy of the certified receipt to that number. The IRS will then process the information and respond back to the contact of record in their files. You should also consider filing Form 8822-B, Change of Address or Responsible Party - Business. You can find it here: www.irs.gov/pub/irs-pdf-f8822b.pdf. Ira Smilovitz, EA On Thu, May 4, 2023 at 10:08â¯PM Stephanie Kissel via bivio.com <user*26670400001@bivio.com> wrote: On Monday I received a letter from the IRS stated we owed All you need to provide is proof that the post office received a tax return by the filing deadline. Certified mail accomplishes that proof. An IRS rep told me that years ago. Carole Jansen Wise Investment Club
From my experience (personal, not club related) I would never, ever call them. Answer them by certified mail and include the letter or reference number they sent in the compliance notice. Send documentation that the tax return was postmarked before the due date of March 15th. It's very likely that you will never hear from them again. Do not seek a new EIN. Lee Weygandt Treasurer, Market Miners Investment Club Findlay, Ohio On 5/4/2023 10:07 PM, Stephanie Kissel via bivio.com wrote: > On Monday I received a letter from the IRS stated we owed > $2200.00 for a late arrival of our return. Long story > short: It was mailed on March 9,2023. I sent it with a > return request. They got it on the 23rd of March. I went > to the USPS website and copied the tracking info which was > leaving my city on the 9th and traveling to another city > then got stuck in a hold facility in Kansas City. I tried > contacting them by phone. Because our club is over 20 years > old our Tax ID # was gotten 20 plus years ago. They will > not discuss this with me because I was not a member when the > ID number was issued. Does anyone have any ideas how we > should proceed. Do we need to get a new id # issued? > > I sent a letter to them with copies of the tracking etc. > but I am concerned about the ID number--- Stephanie Kissel > Dividend Divas Calling is often faster. You should get the agent's name and badge number. The agent can provide a fax number. If you send the fax while on the phone with the agent, it can all be handled during the call. The agent will confirm that a change notice will be issued. This advice is based on decades of experience dealing with client issues. Calling doesn't preclude sending a written response at a later date should the issue not be resolved. Ira Smilovitz, EA From my experience (personal, not club related) I would never, ever The late tax return has been a frequent subject in this forum and it happened to our club for the 2020 tax year. But we went thru the hassle of proving when we sent it and they dropped their case and the penalty. What I don't understand is why don't they look at the envelope the tax return comes in to verify when it was sent? For a business that is so reliant on when something is mailed, keeping the envelope seems like a no brainer to solve this very issue and save the taxpayers the grief and the IRS the wasted efforts. Ira, got any wisdom on this problem solver? Steve Foster Circle of Friends
On Friday, May 5, 2023 at 07:19:48 AM PDT, ira smilovitz via bivio.com <user*2883400001@bivio.com> wrote:
Calling is often faster. You should get the agent's name and badge number. The agent can provide a fax number. If you send the fax while on the phone with the agent, it can all be handled during the call. The agent will confirm that a change notice will be issued. This advice is based on decades of experience dealing with client issues. Calling doesn't preclude sending a written response at a later date should the issue not be resolved. Ira Smilovitz, EA From my experience (personal, not club related) I would never, ever 1. The IRS is badly understaffed. It will be several years for the money allocated by Congress to alleviate this condition. 2. Imagine the amount of paper that the IRS receives in just one day during tax season. It must be securely stored somewhere until it can be processed. This is why the IRS recommends e-filing. (Unfortunately, investment clubs have no inexpensive and easy way to e-file.) 3. Once the envelope has been opened and its contents scanned, it becomes much easier to misplace the envelope. 4. Postmarks are not always readable, especially after they have been in storage for six months or more. The IRS does scan the envelope and looks at the postmark. But as William pointed out, the postmark isn't always legible and human errors can be made by the clerks who open the envelopes. Investment clubs do have an inexpensive way to efile their federal returns - bivio provides efile services starting with 2022 returns. Ira Smilovitz, EA 1. The IRS is badly understaffed. It will be several years Thank you IRA and WILLIAM for the IRS update. We are very glad to have e-file with bivio for the federal tax return, which will eliminate most if not all of these "late" issues. Steve Foster
On Friday, May 5, 2023 at 05:14:52 PM PDT, ira smilovitz via bivio.com <user*2883400001@bivio.com> wrote:
The IRS does scan the envelope and looks at the postmark. But as William pointed out, the postmark isn't always legible and human errors can be made by the clerks who open the envelopes. Investment clubs do have an inexpensive way to efile their federal returns - bivio provides efile services starting with 2022 returns. Ira Smilovitz, EA 1. The IRS is badly understaffed. It will be several years IRS sent notice our Club had filed 2022 tax return for 2021 late in 8/22. I called 4 times sent fax with copy of Certified receipt proof, receipt, and tracking report and sent updated Certified lettets 4 times, IRS kept sending letters after it was corrected upping fines and interest. Agents said IRS could not look up tracking. Got a supervisor in Nov who had me wait 5 min, checked tracking, Form was received in late Feb but not in Dept until Aug. He said every agent I had spoken to could have checked tracking filed to close case. He removed charges Also paper filing needs human eyes on, efile is computer checked for errors. New Congress froze funds for 80K+ new agents not needed due to e filing. AI should also reduce workload. Cindy Gerke CRIG
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