Help - IRS letter indicating penalty for late 3520

nanic · Post by **nanic** » Fri Sep 28, 2012 12:09 pm

So it seems to me that the IRS should only require [u]actual residents of the US[/u] to fill out forms like the 3520 and FBAR. US Citizens outside the US should still be required to fill out 1040's but be excluded from filling out other forms such as 3520, ect...

nelsona · Post by **nelsona** » Fri Sep 28, 2012 1:18 pm

I don't agree that foreign residents should be exempt from these filings, as they are not merely for the pupose of tracking tax evasion.

However I do suggest (as the recent Form 8938 has implemented) that separate thresholds (and perhaps penalty scales) should be implemented based on foreign residency

shopgirl1 · Post by **shopgirl1** » Sun Sep 30, 2012 12:18 am

CdnAm - first - thanks for all your details regarding the additional penalty letters. Your postings have helped immensely as I try to make sense of what is going with the IRS at times.

Regarding penalty letters, one IRS agent told me that they're printed and processed well in advance of the date indicated on the penalty letter. Sometimes 10-14 calendar days. That fact concurs with conversations that I have had with agents on the phone when they tell me the date that the agent sent out the letter and I compare that to the date on the letter that I was holding in my hand. Hence, you can still receive them, dated after you've been told that the penalty is withdrawn.

Zad - I learned a trick from you - which is to call the IRS Business Returns (267-941-1000) at 8am~ EST. I find that the agents tend to be more pro-active, as well as understand the 3520. The conversations are always painful and take at least an hour, but sometimes you may come across someone helpful. Good luck!

Taxpayer Advocacy??? I wiish I had known about them sooner.

3520woes · Post by **3520woes** » Mon Oct 01, 2012 2:58 pm

I just wanted to update everyone...

A day or two after I submitted the issues to the TAS systemic advocacy platform, I got an email (!) from a TAS advocate asking me to call her back (!!). I ended up having a conversation with an incredibly nice, well-informed woman from TAS who assured me that TAS is working to address this (both the erroneous letters and the way that responses sent by taxpayers are processed as not covering all accounts/years) as a systemic issue, as well as several other issues regarding 3520/3520-As. There's hope!

zad888 · Post by **zad888** » Mon Oct 01, 2012 9:02 pm

CdnAm..thanks for your advice. I still have yet to give them a call.

shopgirl...just to give credit where credit is due...it was CdnAm's suggestion to call the IRS at 8am EST...and I'm very thankful for all his/her great advice!!

CdnAmerican · Post by **CdnAmerican** » Mon Oct 01, 2012 11:31 pm

Thanks all for input on this thread. It's clearly touched a nerve! I am thinking that perhaps sending a letter to the TAS may be helpful in making it less likely that others have the same drawn-out experience as we've had. That sounds like really good service, and I do wonder why the IRS wouldn't use email when the taxpayer has consented to doing so.

In any event, glad I could help and I appreciate the help others have given me (a he) as well! I will re-post once all of my situation is resolved. Hopefully soon ..

CdnAmerican · Post by **CdnAmerican** » Tue Oct 16, 2012 8:20 pm

Hey all - just to wrap this story up. I've now gotten my last indication that all 7 charges ($70K) have been abated, so now I can get a good night's sleep. This seems to be the same story that everyone has, eventually. Thanks again for all the comments on this thread!

primo · Post by **primo** » Tue Oct 16, 2012 8:49 pm

Great news! What a relief!

shopgirl1 · Post by **shopgirl1** » Tue Oct 16, 2012 9:11 pm

That is wonderful news. Now crossing fingers for everyone else (myself included).

zad888 · Post by **zad888** » Wed Oct 24, 2012 3:39 pm

That's wonderful news CdnAm!

I just got off the phone with an IRS agent who looked into my account...it took him a whole 20 minutes to go through my record. The wait was well worth it as he abated the $10+k penalty and told me that a notice will be sent out my way showing a zero balance on my account. Now it's just a matter of waiting for the IRS letter...

Thanks to everyone...for all your inputs on this thread. I hope everyone else will have their 3520A issues resolved soon with a positive result.

primo · Post by **primo** » Wed Oct 24, 2012 3:49 pm

Good to hear zad! Don't lose that letter once you get it!

zad888 · Post by **zad888** » Wed Oct 24, 2012 3:56 pm

Thanks Primo! =D

CdnAmerican · Post by **CdnAmerican** » Wed Oct 24, 2012 9:42 pm

So far, I've had 7 penalties, with 7 bills. Then I've gotten 7 bills removing the $10K penalty, and 6 abatement letters. The agent I spoke with said I may not get a letter (or a bill) for each one that's abated, so I am not stressing about the last one left over. Also, I got a penalty letter out of the blue last week which was just hung in the mail - but had the same date on it as the rest (well over a month old).

I'm just mentioning this so that you don't stress too much waiting for the letter. I was told they'd take 4-6 weeks, and that's been about right for me. Maybe on the lower end of that time frame, but still long enough that it wasn't helpful to check the mail every day. My experience is that what the agent told me all came to fruition with letters (eventually).

Good luck!

zad888 · Post by **zad888** » Wed Oct 24, 2012 11:58 pm

Thanks CdnAm...good to know...I don't want to have to stress over a letter... =D

zad888 · Post by **zad888** » Wed Dec 12, 2012 9:36 pm

Just an update...

After almost 2 months from my last conversation with the IRS [telling me that they will abate the penalty], I received another notice of penalty today. This is the "2nd - Second Reminder"...the "1st - Second Reminder" was sent back in September. How many Second Reminders are there? I never received my letter of abatement from them. Do I just wait and disregard this "2nd - Second Reminder" or would it be best to give them another call?

CdnAm, did you receive your last abatement letter from the IRS?

shopgirl1, any update on your situation? has yours been resolved?