Needing to prove that you filed your taxes on time? Here's how I showed timely filing …
- If you mail your taxes, send them Certified Mail, and keep your receipts.
- You'll need these receipts to prove timely filing, and the best thing to do is fax them when you call.
I've talked a number of times about my phone interactions with the IRS.
I've called them to ask questions and to discuss penalties assessed against our businesses.
Overall, I've found that the IRS employees are professional, courteous, and helpful. Sometimes there are long wait times to speak with them, but once you get through things are smooth.
IRS backup – courtesy of the pandemic
More recently, I've gotten my act together a little bit more. But because of the pandemic hitting around the time I had to file my form 1065, things got badly backed up.
I was sent a letter for a late filing penalty in December 2020 for my 2019 Form 1065 for one of our limited liability companies (LLCs), even though I was sure I had filed on time.
After talking with the IRS employee, I would need to provide proof of my timely filing to have the penalty dismissed outright. I couldn't find the proper documentation at the time (because I'm a bit disorganized) but they were able to find a way to dismiss it anyway, which was nice. It helps to be diligent in addressing these letters quickly.
That was one LLC. But we have two.
I mentioned above that things had gotten backed up. They had processed that Form 1065 at the end of 2020, seven months after I had filed.
I then asked about the other LLC we have, since the same problem might be happening with that one.
It turned out that the IRS hadn't even processed that second return, and it was January 2021.
So, she made a note in the system for the other LLC, so that if/when I got a similar letter for that one, the employee handling my call then would have a reference.
My second late filing notice
Fast forward to Memorial Day weekend 2021. I wasn't terribly surprised to receive my second late filing letter.
Thankfully, in the meantime, I had found the Certified Mail receipts for my Forms 1065. That was the proof I had needed before.
After I got through to the IRS employee (which took a few tries and several hours on hold) I explained that I had the Certified Mail receipt dated 12 March 2020, which was before the deadline.
She asked me: “Can you fax that to me while we're on the phone?”
FaxZero to the rescue
Thank goodness I'm old enough to know what a fax machine is. I'm pretty sure my daughter doesn't.
Thank goodness also that FaxZero is still around, because I don't own a fax machine.
The website still looks the same as it did nearly a decade ago the last time I used it, and it still works great.
And it was free.
The IRS employee received my fax, and proceeded to dismiss the penalty.
Summary: How to prove timely filing of your taxes
Here is a summary of what I learned in case this happens to you.
- If you mail your tax returns, send them Certified Mail. This is a US Post Office service. It includes a tracking number so that you can see when it arrives.
- Keep the Certified Mail receipts! It's a nearly-square piece of paper with green bars on it, and is about the size of a regular Post-It note. This is the proof that's needed if the IRS thinks you didn't file on time. The credit card receipt showing payment for the service doesn't count. (I tried.)
- When you call the IRS, place your call early in the morning. The office opened at 7 AM Eastern time. The time I got through this last time, I placed my call at 7:03 AM. When I called a few days prior somewhere between 9 and 10 AM, I was on hold for two hours and a glitch in the voicemail system caused the call to end. I started calling the first business day I could and called every day until I got through. That's where we are now.
- Scan the receipts prior to the call. I didn't do this, but thankfully it didn't take too long during the call.
- Locate a fax service prior to the call. FaxZero works. The IRS employee didn't offer email as an option.
- Consider filing electronically in the future. Electronic filing of Form 1065 requires special software or someone with access to the software. With certain kinds of LLCs, though, it's not even necessary to file 1065; it only needs to go on Form 1040, which is much more common. But that's another post!
Hope this helps!
If you have other suggestions or experiences, leave them in the comments!
