Client mailed balance due tax return, enclosing large payment, on April 15, 2009. Aware of IRS reputation for pretending they don't receive things, client had the good sense to certify the mailing at the post office effective April 15th.
Post Office did not deliver to Austin Service Center until May 23, 2009. IRS calculated a $2300 failure-to-file penalty, a $230 failure-to-pay penalty, plus interest of $112. Also a penalty for underpayment of estimated tax (which was legitimate, calculated on the return, and nothing to do with this question).
You can imagine what had to happen to clear this mess up. Correspondence back and forth, copies of postal documents, etc. After several months of haggling, the IRS finally removed Failure-to-file and Failure-to-pay penalties. However, the lions share of the interest was not waived.
They claim they are not permitted to waive interest because it is based on payment received, and not payment mailed. Anyone know about this?
Post Office did not deliver to Austin Service Center until May 23, 2009. IRS calculated a $2300 failure-to-file penalty, a $230 failure-to-pay penalty, plus interest of $112. Also a penalty for underpayment of estimated tax (which was legitimate, calculated on the return, and nothing to do with this question).
You can imagine what had to happen to clear this mess up. Correspondence back and forth, copies of postal documents, etc. After several months of haggling, the IRS finally removed Failure-to-file and Failure-to-pay penalties. However, the lions share of the interest was not waived.
They claim they are not permitted to waive interest because it is based on payment received, and not payment mailed. Anyone know about this?
Comment