1120S late file penalty

[luke]

Any ideas what would be reasonable cause to get IRS to remove 1120S late file penalty? Return could not be efiled (problem with name not matching?) and t/p did not send by return receipt?

[DaveinTexas]

Assertiveness

Any ideas what would be reasonable cause to get IRS to remove 1120S late file penalty? Return could not be efiled (problem with name not matching?) and t/p did not send by return receipt?

Be bold and matter of fact, but respectful, in asking for the penalty abatement. Do it first by telephone, many times speaking with an IRS agent yields better results than writing a letter. However, often the agent will instruct you to write a letter if the penalty abatement is beyond their threshold authority.

If you are calling or writing a letter, mention all the facts you gave us. Fact 1, there was a valid attempt to E-File the return. Fact 2, upon discovery that the return could not be E-filed, the return was indeed filed by paper through the mail but the return was lost in transit. Fact 3 (add your own here), There has been a rash of lost or un-returnable mail in our area due to a Postal Worker Union strike (I just thought of this one!).

Also, it sounds like the taxpayer (Corporation) may be a first time filer if the name did not match; I'm guessing. If this is the first time the taxpayer has late filed, the IRS will look to the filing history of the taxpayer. If this is the first time filing (1st year return), then most often the IRS will abate the penalty as long as you assert that the taxpayer will never again be late. OR, if the filing history is clean (timely filed every return in the past or has shown a record of timely filing) the IRS will allow a 1st time late filing abatement.

Personally, I have asserted my 3rd Party Designee authority when speaking directly to an IRS agent and it works about half the time. They say, "you don't have a valid Power of Attorney". I tell them I am the 3rd Party Designee on this return and that permits me to speak directly to the IRS regarding penalty abatement. It works half the time, as I said. Some will abate the penalty over the phone and others (as mentioned above) will make you write the letter.

Let me know if any of this gobbly gook is not clear and good luck with the abatement (HAPPY HALLOWEEN!!)

[Gretel]

My 2 cents: I heard in a seminar that the magic words that should appear in such letter are "reasonable cause". This is what the entry agent and the computer are looking for. I have written very short letter, insuring the magic phrase is in it and a short second sentence. Never had problems.

We need to realize that on that level there is not much thinking going in. These agents have check lists and are looking mainly to match them. If they can't it will be passed on.

[appelman]

If e-file was timely...

You should only need to send them a copy of the rejection notice and a brief explanation of what happened.

Any ideas what would be reasonable cause to get IRS to remove 1120S late file penalty? Return could not be efiled (problem with name not matching?) and t/p did not send by return receipt?