How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask taxmanrog Your Own Question

taxmanrog
taxmanrog, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 392
Experience:  Licensed CPA, MA, MST with 29 year's experience. Teach Accounting and Tax courses at Masters level.
74656765
Type Your Tax Question Here...
taxmanrog is online now
A new question is answered every 9 seconds

Have an S corp with 11 shareholders. One died in Dec 2012,

Resolved Question:

Have an S corp with 11 shareholders. One died in Dec 2012, filed return noting that did not have TIN for deceased shareholder , but would furnish ASAP. President's wife was hospitalized with lung cancer at Mayo Clinic day notice was sent from IRS of incomplete return, he was occupied with her care until late June when mail was forwarded. IRS did not contact preparer , but assessed penalty of $8580 ($195 per month per shareholder for four months). Sent letters 6/29 and 7/10 explaining situation and TIN. No reply ,but now received notice they will levy on 8/5/2013. How should we procede?
Submitted: 1 year ago.
Category: Tax
Expert:  taxmanrog replied 1 year ago.

Hi! Welcome to Just Answer! This question was open, as the expert you asked for seems to be unavailable. I see you are online, and this question has high urgency, so with your permission I will assist you.

 

You followed the proper procedure in contacting the IRS as soon as you found out what was happening. However, your letters may not have been enough to convince them to abate the penalty.

 

You need to write a letter asking them to abate the penalty under the reasonable cause exception. Internal Revenue Code (IRC) §6051 allows for the penalty to be abated based on "reasonable cause". Reasonable cause is based on all the facts and circumstances in each situation and allows the IRS to provide relief from a penalty that would otherwise be assessed. Reasonable cause relief is generally granted when the taxpayer exercised "ordinary business care and prudence" in determining their tax obligations but nevertheless failed to comply with those obligations. In this case, your obligation was to file a timely tax return.

 

Since you hired an outside tax preparer and are asking questions on this site, I am assuming that you are not tax experts. You should point that out in your letter. As such, the facts that you hired outside preparers, and attempted to file, even noting that the one shareholder's SSN was not available, indicates that you exercised ordinary business care and prudence. You performed all the acts that a reasonable taxpayer would do. You should also point out in your letter that had you known that they would not accept the return, you could have filed for an automatic 6 month extension of time to file the tax return, which would have given you until September 15 to file the return.

 

Put a letter together for using the above information, and send it to the address on the original notice. Include copies of the original note included with the return which stated that the SSN was not available but would be obtained, as well as copies of the other two letters that were sent.

 

Make a copy or two before you send it. Then, call the phone number on the IRS Notice of Intent to Levy, and ask them for a 60 day hold (if not more). Explain the situation, and offer to fax your letter to them. They may or may not want to see it. However, they do have the ability to put a hold on the levy.

 

Between these to actions, you should be successful in getting the levy stopped and getting the penalty abated. I have written dozens of these letters, and have been successful with most of them. If you would like, I can upload a sample letter in the morning when I get back to the office, just let me know.

 

I hope this helps with your situation! If you have any more questions, please feel free to ask! If you have found my answer helpful, please rate me highly! I would appreciate it!

 

Thanks again, and have a great evening!

 

Roger

taxmanrog, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 392
Experience: Licensed CPA, MA, MST with 29 year's experience. Teach Accounting and Tax courses at Masters level.
taxmanrog and 5 other Tax Specialists are ready to help you
Expert:  taxmanrog replied 1 year ago.

I saw your request had high urgency. I have not heard back from you as to whether you wanted a sample letter or not.

 

If my answer helped you, please don't forget to rate me highly! I would appreciate it!

 

Have a great week!

 

Roger

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.