I have a 2020 calendar year 1065 LLC return that I prepared & e-filed in early April 2021 ( so I thought).
In working on its 2021 1065 and referencing to the 2020 returns, I noticed that there were no e- file confirmations in my system. I know I e-filed it. So I don't know what exactly happened. All taxes were timely paid - $800 FTB minimum tax, AZ no tax due. (The 1065 consists of AZ rental property owned by CA residents). I am concerned about the potential excessive Federal late filing penalty for partnership if in fact the return wasn't successfully e filed.
I am aware of Rev Proc 84-35 and I believe it should be applicable in this case, as this is a small partnership with 3 partners. All of the partners' 2020 personal tax returns were timely filed and taxes paid. I believe the Partnership would have met the reasonable cause test & therefore not subject to penalty under 6698.
My question is, do you think it is wise to submit a paper return now, in case the 1065 e-file did not go through, just to curb the late filing period from the 2020 extension date to the time a paper filing (current date) is submitted.
Or do you think it is overkill aand bringing unnecessary attention to the IRS? Should l let sleeping dogs lie & In the event IRS issues a late penalty notice, just rely on Rev Proc 84-35 for relief. What do you think?
Appreciate your expert opinion. Thank you so much!
Hi Tom,
I have a 2020 calendar year 1065 LLC return that I prepared & e-filed in early April 2021 ( so I thought).
In working on its 2021 1065 and referencing to the 2020 returns, I noticed that there were no e- file confirmations in my system. I know I e-filed it. So I don't know what exactly happened. All taxes were timely paid - $800 FTB minimum tax, AZ no tax due. (The 1065 consists of AZ rental property owned by CA residents). I am concerned about the potential excessive Federal late filing penalty for partnership if in fact the return wasn't successfully e filed.
I am aware of Rev Proc 84-35 and I believe it should be applicable in this case, as this is a small partnership with 3 partners. All of the partners' 2020 personal tax returns were timely filed and taxes paid. I believe the Partnership would have met the reasonable cause test & therefore not subject to penalty under 6698.
My question is, do you think it is wise to submit a paper return now, in case the 1065 e-file did not go through, just to curb the late filing period from the 2020 extension date to the time a paper filing (current date) is submitted.
Or do you think it is overkill aand bringing unnecessary attention to the IRS? Should l let sleeping dogs lie & In the event IRS issues a late penalty notice, just rely on Rev Proc 84-35 for relief. What do you think?
Appreciate your expert opinion. Thank you so much!