Guest Doogie61 Posted December 11, 2009 Posted December 11, 2009 Is anybody else getting IRS penalty letters for 2006 or 2007 calendar years? My clients all filed their forms on time and yet they are getting hit with a penalty of $15,000.
rcline46 Posted December 11, 2009 Posted December 11, 2009 We got an enormous number of them - I think something went wrong in Kansas - like they lost a couple of truckloads of forms.
Belgarath Posted December 11, 2009 Posted December 11, 2009 Naturally, they probably didn't listen to your advice to send them certified return receipt requested? Ours never do... As much as electronic filing is going to be a pain, at least it should alleviate some of this kind of foolishness.
BG5150 Posted December 11, 2009 Posted December 11, 2009 As much as electronic filing is going to be a pain, at least it should alleviate some of this kind of foolishness. ...but probably create problems we couldn't ever dream about before... QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
K2retire Posted December 11, 2009 Posted December 11, 2009 Apparently the IRS letter writers were very busy last weekend. Most of my clients have no idea if they filed or not. It is interesting to hear that you're getting notices from people who know they were filed.
jkharvey Posted December 18, 2009 Posted December 18, 2009 Any of you who have received the $15k penalty notice, was DOL DFVCP still available as an option?
BG5150 Posted December 18, 2009 Posted December 18, 2009 Any of you who have received the $15k penalty notice, was DOL DFVCP still available as an option? Until you get a letter from the DOL, I believe DFVCP is still in effect. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
SheilaD Posted December 18, 2009 Posted December 18, 2009 Apparently the IRS letter writers were very busy last weekend. Most of my clients have no idea if they filed or not. It is interesting to hear that you're getting notices from people who know they were filed. I have clients whose returns are posted on Free Erisa who are receiving letters that they never filed!
MSN Posted December 18, 2009 Posted December 18, 2009 jkharvey- I have successfully used DFVCP after client was assessed a penalty.
Below Ground Posted December 18, 2009 Posted December 18, 2009 Bart is correct. Until you get a letter from the DOL, the Deliquent Filer Program remains available. So, if you get an IRS letter you can still use that program. Now, if you get a letter from the DOL.... Having braved the blizzard, I take a moment to contemplate the meaning of life. Should I really be riding in such cold? Why are my goggles covered with a thin layer of ice? Will this effect coverage testing? QPA, QKA
jpod Posted December 18, 2009 Posted December 18, 2009 Per the DFVCP rules, you can't use DFVCP once you've been contacted by DOL, but you can use it if you've been contacted by IRS, even if IRS has assessed a penalty (as long as you have not been contacted by DOL). The above assumes that the Plan is subject to Title I of ERISA. If not (e.g., an owner-only plan), DFVCP is never available. If MSN is saying that he has been able to have his clients slide in using DFVCP and escape harsher penalties even after the DOL has contacted the client, that may certainly be true, but that's not what the rules say.
MSN Posted December 18, 2009 Posted December 18, 2009 I was referring to an IRS penalty, prior to the client being contacted by the DOL.
goldtpa Posted December 19, 2009 Posted December 19, 2009 I too have gotten many letters from IRS. I have had success stating that the 5500 was filed. An IRS agent told me, off the record, to write a letter stating hat the 5500 was filed on time and that the penalty should be abated since this is a wide spread problem. So far IRS abated all of the penalties.
K-t-F Posted January 3, 2010 Posted January 3, 2010 I have received these letters... responded to the first letter only to have the client forward to me the $15k penalty letter. I have responded to that letter to receive an abatement letter. Anyone remember back in 1994 (or around then) when there were a ton of letters being sent out just like these? The reason for the letters was that a truck had crashed in NY when they were moving an office to Brooklyn. I suspected that these letters this time was a way to replace lost records. Who knows. Its not easy being green
Guest DanCole42 Posted January 8, 2010 Posted January 8, 2010 If anyone gets a letter from the IRS about a delinquent filing, please give us a call at 202-370-4807 and we'll see if we can get a copy for you to wave in the IRS's face.
Guest VEBAPLAN Posted January 8, 2010 Posted January 8, 2010 Letters also went out on the proposed fines under 6707A for 419 plans for the million dollar fines. Lance Wallach
Guest VEBAPLAN Posted February 9, 2010 Posted February 9, 2010 Would be interested in hearing from more people on how IRS is treating their clients, Lance Wallach lawallach@aol.com thanks
MJ Hartman Posted February 16, 2010 Posted February 16, 2010 my client got a letter from the IRS in Dec. stating their 5500 for 2006 wasn't received and they could file under the DFVC. the client filed immediately under the DFVC & filed the forms correctly and paid the $750 to the DOL client got another letter from the IRS dated Jan. 26th 2010 saying they needed a copy of the cancelled check and the form letter was asking for an explanation of the late filing, reason for delay, the name of the person involved causing the delay and if the person had the sole authority to pay the taxes... responed to that letter today (2/16) client just got another letter from the IRS today with a $15k penalty (dated 2/15/10). they refer to a proposed penalty notice CP213 ---- never got this letter. what should they send now?
Guest Linda Harlow Posted February 16, 2010 Posted February 16, 2010 If it helps to know this, we spoke with UT last week and the Revenue Agent to whom we spoke told us that they are at least seven weeks behind in scanning responses from Plan Sponsors to IRS notices. We have had several clients receive letters, send responses (some clients filed on time and are providing filing information and some didn't and are requesting abatement of penalty) only to receive another notice saying that no response has been received. Wouldn't it be nice if the IRS delayed their second round of notices by the same seven weeks that they are behind in recognizing responses from Plan Sponsors? But no, the insanity continues. You can ignore the second IRS notice until the Sponsor's communication is acknowledged (maybe a bit scary for the Plan Sponsor) or buy a stamp that reads "Second Response" and stamp the Plan Sponsor's response in red ink with your "Second Response" stamp before mailing it again. If we all buy "Second Response" stamps and a really stinky red ink, maybe UT will behave better.
MJ Hartman Posted February 19, 2010 Posted February 19, 2010 called UT yesterday and explained the sequence of letters received. I was told to ignore the $15k penalty letter, that they would receive the updated correspondence that was forwarded by the client indicating the proof of DFVC filing prior to the date that the penalty would be applied... I didn't get the excuse that they were backed up in their scanning, but its pretty obvious that things are very much out of synch in their processes. are there planes flying low overhead there too?
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