Finding Silver Linings: A Positive Encounter with the IRS

In the world of taxes, the IRS often gets a bad rap for a myriad of reasons: from convoluted policies and procedures to a lack of transparency and clarity. Couple that with filing delays in their online system and long hold times for customer support, and it's easy to see why frustration can mount. However, amidst the sea of complaints, I recently had an unexpectedly positive encounter with the IRS that I feel compelled to share.?

My usual routine involves my CPA requesting an extension to file my 1040 and 1065. This held true for the 2022 tax year. But then, life threw us a curveball. Both my CPA and her husband contracted COVID-19, delaying the filing process. As if that wasn't enough, technical glitches with the IRS online system further stalled things, pushing the filing into the following year.?

When the dust settled, I found myself facing two daunting letters from the IRS: one citing a failure to file (CP162A) and the other imposing penalties (CP14) totaling around $7,000. Initially, my CPA advised me to pay up while she sorted things out with the IRS. However, I opted to take matters into my own hands and give them a call.?

To my surprise, I was promptly connected with a representative when dealing with the CP162A issue. In just 20 minutes, I explained the situation, and upon realizing I wasn't attempting any foul play, the entire $5,000 penalty was waived under the "first time penalty abatement" policy.?

A similar outcome followed with the CP14 penalty, albeit although this time with a much longer hold time of 30 minutes. Once connected, I detailed the situation, and thanks to my clean track record, the $1,600 penalty was entirely waived under the same abatement policy. The only remaining amount due is the interest, totaling $400.

Reflecting on this experience, I felt compelled to share a few key takeaways:???????

• The individuals working at the IRS are reasonable and approachable. They're not adversaries, but rather individuals following established protocols.
• It's always worth reaching out and asking for assistance. The worst-case scenario is a polite refusal, leaving you no worse off than when you started.
• While my CPA encountered challenges, ensuring timely tax filing remains my duty.?Ultimately, the responsibility lies with us as taxpayers.

This encounter served as a refreshing reminder that amidst bureaucratic complexities, human understanding and communication can still prevail.