IRS Issues
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IRS Issues Are other groups experiencing issues with the IRS? On Tax year 2020 we filled the 1065 on March 11 (Postmark) They, apparently, received the mail (Receipt stamped March 30th) They assessed our club with a steep penalty. Of course we will contest the penalty via form 843 (Request for Abatement) When I called the IRS via phone, they will check and see if I'm an officer of the club. And, they way the check by requesting to send a copy of the K1 via Fax. I don't have a fax and they want the fax to be sent during the call. Otherwise, they would not speak to me. I submitted the K1 with my return and yet they claim that they do not see the K1 with my 1040. I file my returns with Turbo Tax, and my records show that the K1 is included. Not sure why the IRS does not see the K1. Anyone else experiences issues dealing with the IRS lately. BTW, it takes an average of 1.5 hrs to get an IRS agent on the call, and then they want to end the call quickly without a chance to state your case. Very frustrating! Two years in a row dealing with penalties, to the point that I'm considering terminating the partnership and disbanding the club, as the penalties are eating up the little profit or adding to losses. BTW any advice on how to terminate a partnership in terms of the IRS to avoid another year of penalties... Alessandro Chicago Megabuck Hi, Sorry you are having IRS issues. Fortunately we have not had similar issues with IRS (yet!). Though it took a long time to get the return receipt for our 2020 1065. These and several other concerns have caused our club partnership to disband. So far it has been pretty straightforward: 1) sold all stock (keeps bookkeeping simpler) 2) wait (~mo) for all dividends to be paid 3) audit books and complete 2021 1065 (in Bivio) 4) payout members and send 2021 1065. Hopefully we will not have any issues with IRS. Jeff Rauch, treasurer Sent from my iPhone > On Sep 24, 2021, at 11:15 AM, Alessandro Squeo via bivio.com <user*8340400001@bivio.com> wrote: > > > Are other groups experiencing issues with the IRS? > > On Tax year 2020 we filled the 1065 on March 11 (Postmark) They, apparently, received the mail (Receipt stamped March 30th) They assessed our club with a steep penalty. Of course we will contest the penalty via form 843 (Request for Abatement) When I called the IRS via phone, they will check and see if I'm an officer of the club. And, they way the check by requesting to send a copy of the K1 via Fax. I don't have a fax and they want the fax to be sent during the call. Otherwise, they would not speak to me. I submitted the K1 with my return and yet they claim that they do not see the K1 with my 1040. I file my returns with Turbo Tax, and my records show that the K1 is included. Not sure why the IRS does not see the K1. Anyone else experiences issues dealing with the IRS lately. BTW, it takes an average of 1.5 hrs to get an IRS agent on the call, and then they want to end the call quickly without a chance to state your case. Very frustrating! > Two years in a row dealing with penalties, to the point that I'm considering terminating the partnership and disbanding the club, as the penalties are eating up the little profit or adding to losses. BTW any advice on how to terminate a partnership in terms of the IRS to avoid another year of penalties... > > Alessandro > Chicago Megabuck Alessandro, In all my years of dealing with the IRS, I don't think I've encountered the obstacles you seem to be facing. I have never had to prove my identity when calling about an investment club, beyond giving my name, SSN, and birthdate (which is the current verification method). You also should be able to get the penalty removed with the phone call. If this is the first penalty your club has been assessed in three years, you can request a First Time Abatement over the phone. This is automatic. Your club is a "small" partnership which elected out of CPAR. As such, you can also request abatement under Rev. Proc. 84-35 (small partnership, K-1s furnished timely to partners, all income reported on individual tax returns). As to checking that your K-1 was sent with your personal 1040 - it wasn't. You don't submit a copy of the K-1 with either a paper filed or e-filed return. What is submitted are some of the numbers from the K-1 - which are transcribed to the appropriate forms. There will also be an information entry on Schedule E, page 2 showing the club's name and EIN. Ira Smilovitz, EA Hi, Is anyone else wondering if this was possibly a Phishing scam? How did the IRS contact you? How did you respond? It sounds like by phone. Is it possible you were given a phony number to call? The demand to FAX a document sounds fishy to me. When I made an error on a return, I responded by snail-mail. Linda, I doubt it is a phishing operation. Our club got a similar notice in the mail yesterday. It was on IRS letterhead with an IRS return address. We mailed our taxes on March 15. Sent it via certified mail. USPS did not mail it to the IRS for 6 weeks. USPS has been slammed with budget cuts and the postmaster general would limit OT and host of other problems. We will request an abatement just as Ira mentioned. Kevin Is anyone else wondering if this was possibly a Phishing |
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