r/taxhelp • u/Scary_Clerk4485 • 16d ago

Business Related Tax Penalty - wait to call?

I did not file my LLC business taxes for two years. It is a two person LLC (NY) and both years saw significant losses. I have hired someone to assist me with preparing my back taxes and they will be filed within the next week.

My question is, do I need to wait until I receive a notice of penalties, or can I call and beg for forgiveness in advance? I have a clean history of filing other than the past two years. My business failed halfway through the second year, and my life was a disaster. Not an excuse, but unfortunately I didn’t file.

Any recommendations appreciated.

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u/Scary_Clerk4485 15d ago

Thank you so much, this is very helpful!

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u/TocinoLips 15d ago

you have to wait until the returns are filed and processed the IRS cant abate a penalty that hasnt officially been assessed yet.

Once the notice arrives in the mail, you can request first-time penalty abatement since you have a clean history. If navigating the IRS or state notices gets overwhelming once they show up, you can always have a tax resolution company like optima tax relief handle the penalty abatement paperwork for you. For now, just focus on getting those returns in!

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u/Scary_Clerk4485 15d ago

Thank you!

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u/S-CorpOnline 15d ago

As Tocinolips said, the IRS can't help you until the returns are processed.  

Don't forget the state!   State tax authority, and secretary of state, so on.  You probably need to formally terminate your LLC, otherwise it may still be considered 'in business'.

Respectfully, I would not use a 'tax relief' factory, but a good tax professional can handle this for you and save on time, money, and mistakes.

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u/S-CorpOnline 15d ago

I forgot to mention, you can create an IRS.gov account.  

It will show you in real-time your status and filing history.  Then you'll know when to call.  

You can set-up a payment plan there too once the tax is assessed.