I filed a W2/W3 on time (Jan 2013) for the 2012 tax
year, however, I failed to use a new EIN number I established 9 months prior. When I filed my 1040 with a schedule H
, in April 2013 for the 2012 tax year, I used the new/correct EIN. This caused a discrepancy between the SSA and the IRS
. The SSA has effectively cross referenced these two EIN's and I show a zero balance. The issue I have now is that IRS denied my request to waive the penalty which was assess for failure to submit W2 timely. The penalty ($2,528) is more than the Federal Income
Tax withheld ($2058) for this household employee. I didn't file a W2c/W3c since I had explained all this to them in a letter. They have indicated that I was denied because I didn't show due diligence or establish reasonable cause. In filing
an appeal, the IRS is looking for a statement outlining the law
or other authority on which I rely. I guess my point is I filed on time, just with the wrong number, but everyone got their money. How can I show due diligence or establish reasonable cause to waive the penalty?