Help - IRS letter indicating penalty for late 3520

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shopgirl1
Posts: 27
Joined: Wed Mar 21, 2012 2:19 am

Not quite finalized...

Post by shopgirl1 »

Good news and no news on my front.

Good news: I received two letters dated Nov 6/12 with an apology and it notes that 1 of my 5 late returns resulted in no penalty assessed.

No news: I have not heard back on the other 4...

DETAILS:
Late last week (early Dec), I received two letters stating that there was no civil penalty assessed against me for one of my trust accounts for the 2010 tax year. The two letters were for the same account.

So while it was a relief to receive this letter (mind you this is almost 3 months after I was told that I would receive a 'no penalty assessed' letter), I have not received any correspondence on the remaining accounts.

In truth, the letters are auto-generated, so somewhere in the system, it may be that your situation is still not resolved. For my own peace of mind, I would continue to call and get the agent to dig through your files to see if there are any balances assessed until they find what is causing the letter to be generated. I was told that the letters will continue to get generated when there is an assessed balance against your tax payer ID or your trust ID. Sometimes the agents may not know to look in both places when clearing up your account.

Good luck!
CdnAmerican
Posts: 245
Joined: Tue Aug 30, 2011 12:15 am

Post by CdnAmerican »

Yes, I got all my abatement letters over about a two-month span. These always included a bill with zero balance, and for most accounts also inlcuded (mailed separately) a letter with text indicating the penalty was abated. It's probably worth another call to make sure you are in the clear. I did get a bill after my phone call in which everything was cleared up, but that was from a bill that was already in process through the system. Hope that helps!
Not a professional opinion.
zad888
Posts: 32
Joined: Tue Jan 24, 2012 2:24 am

Post by zad888 »

I heeded both your advice and made that call to the IRS. What the agent told me was that the reversal was clearly entered on Oct 24 but somehow the original agent that did it forgot to include a code along with it which then caused their system to generate another penalty notice. He reassured me that my account had a zero balance for both EIN and SSN...which is all that matters to me...and if I don't receive the abatement letter before the end of Jan 2013 to give them a call so they can put another hold on my account so I won't receive further penalty notices.

shopgirl1: hopefully soon you'll receive good news from the IRS on your other accounts.
CdnAm: that's great! you're definitely in the clear now!

Thank you!!! :)
CdnAmerican
Posts: 245
Joined: Tue Aug 30, 2011 12:15 am

Post by CdnAmerican »

Good stuff zad!
Not a professional opinion.
ceshiwuhao
Posts: 3
Joined: Sat Feb 02, 2013 6:19 am
Contact:

Post by ceshiwuhao »

suppose I won't be completely calm until a final decision is made..
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zad888
Posts: 32
Joined: Tue Jan 24, 2012 2:24 am

GOT IT!!!

Post by zad888 »

Just an update: I received my notice last week from the IRS...the one that I've been waiting for with a total amount due of $0.00...finally!!!
primo
Posts: 93
Joined: Mon Jan 23, 2012 11:51 pm

Post by primo »

Great news, Zad!
CdnAmerican
Posts: 245
Joined: Tue Aug 30, 2011 12:15 am

Post by CdnAmerican »

Great news zad! Seems like it takes 4-6 weeks after a call to get a letter. Slow but reliable.
Not a professional opinion.
zad888
Posts: 32
Joined: Tue Jan 24, 2012 2:24 am

Post by zad888 »

Thank you both!!

I hope you guys have your forms ready for filing...deadline is almost here.
primo
Posts: 93
Joined: Mon Jan 23, 2012 11:51 pm

Post by primo »

I renounced my US citizenship in 2011, so no more IRS forms for me!
zad888
Posts: 32
Joined: Tue Jan 24, 2012 2:24 am

Post by zad888 »

Primo, I'm not too sure, but I think I've read it somewhere that even if you renounce your US citizenship, you will still need to file your taxes for the next 10 years...or has it changed???
primo
Posts: 93
Joined: Mon Jan 23, 2012 11:51 pm

Post by primo »

You file an exit tax return, 8854. If you aren't a covered expatriate, like me. you are done. You are covered, and have more to deal with, if you have more than $2 million in assets or haven't been filing in the last 5 years.
regrettingthis
Posts: 7
Joined: Mon Mar 04, 2013 8:35 pm

Post by regrettingthis »

Last year I found out I was suppose to be filing taxes. I also have a tfsa. So I hired somebody to do them for me. I had 3 years worth for the 3520 and 3520a. I submitted them in June of last year. They included a letter with an explanation as to why I failed to file before. I'm no actually sure the guy that did them had me submit the 3520 along with the 3520a. I know a 3520 was included with my 1040 though.

Anyway, at this point, I have not received a letter regarding those 3 years of filing. So I'm wondering if they accepted my 3530a? Or if the 3520 wasn't included so I'm still considered as not filing at all?

Is there any way I can find this out? Anybody else not receive a letter at all?
primo
Posts: 93
Joined: Mon Jan 23, 2012 11:51 pm

Post by primo »

The 3520/3520A aren't submitted with your 1040. They are sent to a different IRS centre in Ogden, Utah.

I don't know how to find out from the IRS if they received your 3520/3520A. They were of no help when I started receiving letters from Ogden. They seem to have no access to that information by phone. Can't you ask the person who did your taxes to explain what they did?

If I had to do it all over again, I never would have filed the 3520/3520A and just shut the account.
regrettingthis
Posts: 7
Joined: Mon Mar 04, 2013 8:35 pm

Post by regrettingthis »

I know they are submitted to Ogden. But you are also suppose to include the 3520 with your 1040. But that's besides the point.

The issue is that I'm almost certain the 3520 wasn't included with my 3520a submission, but the guy who did it claims it was. I'm the one who mailed the packet he gave me off since I had to sign t first. I'm almost positive it wasn't in there, but at the time i didnt know it had to be. So I'm lookin for a way to find out if the IRS filed the forms as complian or not. I never heard anything back from them.

It seems like I should have heard back one way or another.
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