Form 1041 Filed 4/16 -- IRS Penalty Notice

[George Boutwell]

Client mailed Form 1041 to Ogden on Monday, April 16, with check for $1,400. Today he receives a bill from IRS for something like $9.75: $7 late-payment and $2.73 interest for the period from April 15 to Monday, April 23. (They are also billing another 2 cents interest, on the $7 penalty, for the next 42 days.)

Anyone else think maybe IRS has a software problem?

[jainen]

proof of mailing

>>maybe IRS has a software problem?<<

Doesn't sound like a software problem to me. For some reason the data entry clerk thinks it was mailed on Wednesday or later. It should be easy enough to get that fixed -- just send in the proof of mailing.

[George Boutwell]

So why do you think they would be assessing interest from Sunday, April 15?

[jainen]

that one stumps me

>>So why do you think they would be assessing interest from Sunday, April 15?<<

I think if it was not timely filed, then April 15th was the due date. At least I think they think so. You should ask me why I think they are not assessing a late filing penalty--that one stumps me.

[Uncle Sam]

Form 1041 Filed 4/16

Where is this client located?
In the New York area we had severe floods right on April 16th and 17th that the IRS granted additional filing time for.
Is this applicable to your client?

[George Boutwell]

Where is this client located?
In the New York area we had severe floods right on April 16th and 17th that the IRS granted additional filing time for.
Is this applicable to your client?

He's in a dry climate and he filed April 16.

Good point by Jainen -- if the return was mailed late, why not FF penalty as well as FP?

[jainen]

I don't know

>>Good point by Jainen -- if the return was mailed late, why not FF penalty as well as FP<<

Gee, I don't know. Maybe it's a software problem.

[JohnH]

Don't worry

When you write IRS to question the FTP penalty, they will straighten it all out.

They will respond with a new bill ADDING the FTF penalty.