IRS not responding to replies to CP162 or CP5048 what to do?

[taxnut]

CP162 notice and late filing penalty of $420 assessed on May 31, 2021 for 2020 form 1120S  but an extension was mailed March 10, 2021  Responded with letter asking for abatement on June 7th but no response from IRS. The IRS  sent CP5048 by certified mail and received July 2, 2021 threatening to seize property for non payment of penalty plus interest. Cannot reach IRS by phone number given. Should I send another letter to new address given? What alternative do I have?

[PATAX]

Did you send the first letter via certified mail with return receipt? Do you have proof that the extension was mailed or electronically filed? The IRS is apparently still behind in opening up its mail... They may not have looked at your original response, it is not a good situation in my opinion.....

[BobKamman · Accepted solution]

Don't get all lathered up over a month's delay in resolving a picayune amount.  Even in normal times it would take six weeks or more to resolve such problems.  IRS is caught up on opening its mail but not on reading it.  Let's review taxpayer rights.  They can make vague references all they want in computer notices, but they can't seize anything until they have allowed  a Collection Due Process hearing.  You can't even request that until two or three more notices are received.  If this were $50,000 you might have to worry about them recording a lien before you ask for CDP review, but it's not going to happen here.  Send a copy of your first letter to whatever IRS address is on the latest one, with a paragraph memo explaining the relevant dates.  Don't waste your money on certified postage because it doesn't get any special handling by the Post Office or IRS, and there is no filing deadline requiring proof.  

[USATAXLADY]

Did you send it certified? It's much cheaper to pay for certified mail than late penalties! The way the mail has been moving! I received a notice from the IRS about an audit for a client, 13 days after the date of the audit!!!

[PATAX]

@USATAXLADY 👍 You hit the nail on the head about certified mail... Many tax professionals have been using certified mail for many years...

[BobKamman]

Certified mail and another $7 will get you a cup of coffee at Starbucks.  It does not receive special handling by the Post Office.  It does not receive special handling at IRS and often the "return receipt" card is not sent back.  It doesn't prove that a return was sent to IRS, but it does provide some evidence when there is a question of whether a filing deadline was met.  For responding to an IRS notice, though, it is simply stupid.  If anything it delays the response if scanning takes another day or two.  

[taxnut]

Thank you so much for your advice, Bob. I felt responding to the 2nd notice with a copy of first response was the best alternative but I needed reassurance. I can't even find any notice CP5048 in the IRS offerings! The first response was sent certified but the extension was sent by regular mail which has been my routine for the past 20 years with this particular corporation without a problem. I just hope the IRS understands what we preparers have been going through.

[BobKamman]

Are you sure it's not a 504B and that last digit just looks like an 8?

[taxnut]

You are absolutely correct! I am looking at a copy from the client that isn't too clear.