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IRS botches it yet again


Belgarath

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They try hard, but they just can't ever seem to get things quite right.

I recently (August 29th) submitted a delinquent 5500-EZ filing (years 2005-2015). Naturally, each form had the required wording on the top of each form, and the full penalty of $1,500 was submitted, etc., etc.)

No 5500 forms were ever filed for this plan prior to this. So, now that they have "entered" it on their system, they generated a CP283 Notice assessing an $800.00 penalty for the 2015 form being submitted late!

Gotta love it...

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I've dealt with similar situations and believe all is not lost. I would speak with an IRS representative and receive an impression that all is well and then discover these letters being sent to the client requesting money. I cannot remember a situation where I was not successful in getting those fee assessments abated.

I'm convinced that it's a simple GIGO equation with the computers at the IRS. When the representative fails to key in the case correctly, the computers go to auto-pilot in mailing out the letters (which effectively forces you to contact that IRS). This is unlike collection agencies where they continuously contact you.

So, yes, I is often an inconvenience to engage with them again. But, that's usually expected until you get a full resolution of whatever is going on. I've learned to expect some of those 'unexpected' surprises over the years :)

Good Luck!

CPC, QPA, QKA, TGPC, ERPA

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I'm convinced that it's a simple GIGO equation with the computers at the IRS. When the representative fails to key in the case correctly, the computers go to auto-pilot in mailing out the letters (which effectively forces you to contact that IRS).

This is exactly what it is. I was told as late as last year that EZ's and 5558's are still entered manually and the IRS letter generating software will kick in as soon as the mistake or omission is made by the data entry person.

Simple phone call should do it, but it is aggravating that we have to do it after doing it right the first time.

 

 

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A phone call may be useful, but don't for get to request they send you the letter acknowledging it has been resolved. Never throw out that letter.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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Thanks for the responses. We're responding via a faxed letter - my experience with phone calls (holding forever, then getting someone who doesn't know a darned thing) is horrific. Once in a while it works, but avoiding that route on this one. Will be interesting to see how quickly or slowly it gets fixed.

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I have had very good luck calling the toll free number for 5500's. As long as you have a 2848 signed by the client ready to fax over to them (while you talk) they can (and in my experience, they do) resolve things right then and there.

You have to let the client know that whatever "fix" you agree to with the IRS will no doubt NOT stop the auto-correspondence. So, the client can expect at least one more round of communication before they get a letter from the IRS saying things are all cleared up.

PITA, for sure.

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