2016 IRS Late Filing Fee and Cp210 Overpayment Notice
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2016 IRS Late Filing Fee and Cp210 Overpayment Notice Despite numerous warnings, we submitted our 2016 Taxes after the March 2017 due date. $195 per member penalty was paid in Summer of 2017. We JUST received a CP210 Notice from the IRS saying "We made changes to your December 31, 2016 Form 1065. As a result, your overpayment is $1,195.14" This is the original penalty amount and $25.14 in interest (that we now have to pay taxes on. A refund check is expected in 2-3 weeks. What is happening here? Any insights? Thanks for your thoughts. The IRS granted administrative relief to partnerships that missed the March 15 deadline, but filed before April 15. See IRS Notice 2017-47. https://www.irs.gov/pub/irs-drop/n-17-47.pdf. Ira Smilovitz On Tue, Jan 16, 2018 at 7:51 PM, Mark A. Carrozza via bivio.com <user*28101600001@bivio.com> wrote: Despite numerous warnings, we submitted our 2016 Taxes after That's great to know. If all the members want to put the money back into the club, can I deposit the refund check and account for this as a regular payment, including the interest, allocated proportionally? On Tue, Jan 16, 2018 at 8:31 PM, ira smilovitz via bivio.com <user*2883400001@bivio.com> wrote: > The IRS granted administrative relief to partnerships that missed the March > 15 deadline, but filed before April 15. See IRS Notice 2017-47. > https://www.irs.gov/pub/irs-drop/n-17-47.pdf. > > Ira Smilovitz > > On Tue, Jan 16, 2018 at 7:51 PM, Mark A. Carrozza via bivio.com > <user*28101600001@bivio.com> wrote: >> >> Despite numerous warnings, we submitted our 2016 Taxes after >> the March 2017 due date. $195 per member penalty was paid >> in Summer of 2017. >> >> We JUST received a CP210 Notice from the IRS saying "We made >> changes to your December 31, 2016 Form 1065. As a result, >> your overpayment is $1,195.14" >> >> This is the original penalty amount and $25.14 in interest >> (that we now have to pay taxes on. A refund check is >> expected in 2-3 weeks. >> >> What is happening here? Any insights? >> >> Thanks for your thoughts. > > It all depends on how you recorded the original penalty. I would enter the returned penalty as a negative entry that undoes the original payment. Enter the interest as interest income. You might want to send a request to support to review your records and recommend the best solution. Ira Smilovitz On Tue, Jan 16, 2018 at 8:38 PM, Mark Carrozza via bivio.com <user*28101600001@bivio.com> wrote: That's great to know. If all the members want to put the money back The members (partners) really do not have a choice about "putting the money back in the partnership". The check is made out to the partnership, I presume, no matter how you got the money into the partnership (special assessment or existing partnership cash) to pay the IRS. To record the deposit, you would just debit cash and credit the expense account you used to record the disbursement, and credit the interest portion as income.On Tue, Jan 16, 2018 at 9:04 PM, ira smilovitz via bivio.com <user*2883400001@bivio.com> wrote:
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