Question

Topic: Other

Who Owes The Money?

Posted by Anonymous on 1/20/2011 at 12:16 PM ET 25 Points
A few days ago I received a letter from the IRS stating I owe them $$$$ (over $1,000) in late fees. According to them, my taxes were filed late. My accountant claims he sent in the extension before due date and the taxes were filed accordingly.
I have spoken to him (accountant) and it seems like he is not assuming any type of responsibility on this issue other than encouraging me to respond to the IRS and try to get them to lower the penalty and so on..
In your opinion, who is to blame?
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RESPONSES

  • Posted by michelle.woolfolk on 1/20/2011 at 12:43 PM Accepted
    Did your accountant file electronically or mail? If he filed electronically, he should have some kind of date/time record of the transmission that he could provide to you so that you can respond to the IRS. If he mailed it, then it's your word & your accountant's against the IRS. I would ask the IRS to prove that it was received late. If they can show you a post marked enveloped or something that proves that indeed it was received late, then I would go back to your accountant and negotiate any late fees from the fee you pay him. I am not an accountant, but this is how I would approach this situation. If the IRS can't prove it to your satisfaction, then they probably have some kind of arbitration you can work through. Good Luck!

    Michelle
  • Posted by telemoxie on 1/20/2011 at 2:03 PM Accepted
    I am also not an attorney.

    according to the IRS:

    Please be aware that an extension of time to file your return does not grant you any extension of time to pay your tax liability

    see https://www.irs.gov/formspubs/article/0,,id=98155,00.html

    It may be that the penalty imposed is not related to the timing of a (properly or improperly submitted) request for an automatic extension. It may be that the penalty is related to the failure to pay your (estimated) tax liability on time.
  • Posted by michael on 1/20/2011 at 3:29 PM Accepted
    So not really the right forum BUT, YOU are always responsible for filing your taxes properly and on time. Some CPA's will back you up but ultimately the responsibility in the IRS's eyes is you.

    Michael

    PS...also not an attorney. Just an over-taxed tax payer
  • Posted on 1/20/2011 at 3:54 PM Author
    I really appreciate you all for your wise advice and truly relate to your comments of being an ever taxed tax payer!.
    I guess I need to clarify I did not owe the IRS any money. WMMA- i called soon after I received the letter and I might as well have been talking to a deaf person!. Very unpleasant experience but I will call again. Still debating if I should call or write to them.
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