Cashmoney, did you get this issue resolved? In a similar boat here.I don't agree that the penalties assessed to the OP were "exactly as according to law". In 2019, the maximum penalty for late filing of Form 5500-EZ was increased from $15K to $150K for forms required to be filed after 12/31/2019. The 2018 form had a filing due date prior to 12/31/2019, so the maximum penalty for 2018 should have been $15K not $150K.Nope. Those fines are exactly as according to law. See the comment from Alan S above:
Yeah, those numbers seem out-of-line, even for the IRS. The failure-to-file likely led to the IRS making up its own numbers, which happens all the time. There are also an untold number of entry errors every year which lead to unreasonable tax liabilities being assessed.
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Since the OP has not responded in about 4 months, I think it's likely the OP was successful in getting the penalties fully abated, so that the issue of the incorrect assessment amount for 2018 became moot.
I don't agree with the statement above that the IRS often "makes up its own numbers" regarding penalties, but the IRS does sometimes make mistakes in their penalty assessments.
I filed for penalty relief in august 2022 for not filing form 5500 tax year 2013-2020.The IRS cashed my 1500.00 check but recently received 150k penalty cp notice for each tax year 2013-2015.I also thought it was capped at 15k for those years but apparently if you file it after 2019 it is 150k
Funny you should ask after getting multiple " where working on it letters" from the IRS and 3 separate love letters from the IRS last week saying i owed 150k plus about 15k in interest for each tax year 2013,2014 and 2015 i got 3 more letters yesterday from the IRS saying my penalty relief application submitted in August 2022 was accepted for 2013,2014 and 2015 and i owe nothing.Finally after almost two year!
Statistics: Posted by cashmoney — Tue Feb 27, 2024 2:27 pm — Replies 96 — Views 18849