Have a Tax Question? Ask a Tax Expert
Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.
How are you today?
Hi. Good and hope you are doing fine
Yes, in most cases the IRS will refund your penalties that are a result of relying on professional advice that was not sound.
That's good to know. I filed my amended tax returns on Aug 10th. How long does it typically take for IRS to process returns
As for the audit, there's no formula that would tell you for certain whether or not you will be selected for audit. It's a crap shoot
It takes the IRS 12 weeks typically to process an amended return.
When you say audit, do you mean my personal tax return or LLC tax returns? Would they also audit the original tax returns or just the amended ones?
Typically just the amended ones once they are processed, but the original return could be selected for audit
And they could audit either or
either your personal or your LLC
There's nothing out there that can help me say whether or not you will be audited
If we have already amended tax returns, I am not sure why would IRS audit our original returns as they know there were errors which triggered amending of our returns?
It's happened before. But if you have amended the returns typically you tell them, give them the amended returns, and then they look at that
Our 2nd CPA who amended our LLC tax returns took the most conservative approach - capitalized all costs. So, I am less concerned if this gets audited.
Yes, I understand
Another question regarding the LLC tax returns is that my co owner is blaming me for signing the original LLC tax returns and is threatening to take action against me.Can he file breach of fiduciary duty against me?
I am not an attorney so I couldn't tell you if he had a legal case against you, but I wouldn't think so because you relied on the expertise of a CPA
why go to a CPA if you automatically understand all tax rules etc
Yes, I thought so. Any chance IRS would investigate me since I signed the erroneous LLC tax returns? Or would IRS let me off since I amended LLC tax returns anyway?
I would not worry about the IRS. You made a mistake - you did nothing wrong
OK. That's good to know. If IRS doesn't accept my abatement request, can I file an appeal to reconsider?
Yes you can! I don't think there will be a problem though. This is fairly common
Even considering the amount of errors? I paid penalties and interest of around $10K. How do I file an appeal?
If they deny your request they will send you a packet that gives you the forms to appeal
You should be alright though
Is there anything else that I can assist you with today?
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One final question. I applied for a installment payment plan that scheduled to start on 15th Sep. Will IRS confirm this before 15th? If my abatement request is accepted will they cancel my installment payment plan?
You will receive a letter from the IRS confirming the payment plan, yes. Also, when your account notes that no tax is due, the payment plan will be canceled
Thanks for all your answers.