Communicating with the IRS....

At first, I thought it was me.  Now I realize the machine IS actually breaking down.

We file a timely extension (on paper), we follow it up with a timely return (on paper).  [These are not e-file eligible filings.]

We receive a penalty notice of no filing at all:  no extension, no return, nothing made its way into the IRS’ system.  [Naturally, we have IRS “stamped” certified return receipt tickets for everything.  We even included a pre-mailing copy with the return.]

Contact the IRS on the penalty notice.  No 2848 (it too would have to go by mail - quirky tax entity which is not eligible to receive/approve via IRS tax account - not yet anyway, maybe someday - promises, promises).  Try by phone with the client on the line...IRS can’t verify client because client doesn’t have the level of knowledge/detail being requested by IRS agent (obviously, the detail is all with us...we’re the ones preparing the return, duh!).  IRS says, “send a fax” with 2848.  Seriously?  I dumped that thing in the trash almost two years ago thinking ‘we must be good by now.’  BIGGEST MISTAKE EVER!!!!

I even tell IRS agent, if you could see the return in your system, you could see the copy of the certified return receipt ticket we attached to the back of the return right on your screen….go to USPS.com….search for ticket delivery history and “whala, we’re good.”  [NOPE, CAN’T OPEN ACCOUNT WITHOUT 2848.] 

I can mail a response to the penalty notice but…..there’s just no way that things getting processed before the extension, before the return, before the 2848, or before the collection letter is sent.

I told the agent:  “we’ve hit a stalemate”.

This really is getting almost comical…..and I know I’m not the only one.  Suggestions welcome.