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zr
New Member

Do I just need to submit an amended return with the correct tax period dates?

I think I realized the dumb mistake I made. We closed business operations at the end of July 2017. I put the tax year as Jan 1 through July 31. I believe I should have done Jan 1 through Dec 31. I've received a notice CP162 from the IRS. Do I just need to submit an amended return with the corrected dates? Should I call the IRS as well? Thanks for the help.

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Accepted Solutions
KittyM
Level 2

Do I just need to submit an amended return with the correct tax period dates?

Your final tax return is due on the 15th day of the 4th month after you cease operations.  (See Page 3 of the linked IRS Publication 541 on Partnerships for more termination information.)  

The IRS will be unlikely to accept an amended return with a changed termination date after their notice, and since you did cease operations in July, you do not want to lie to the IRS.  What you should do is to respond to the IRS letter with a request for a first time penalty abatement, if you qualify.

To qualify for a first-time penalty abatement, you must have filed all other forms in a timely manner and not have had a penalty or abatement in the previous three years.

I know the penalty can be quite large, and by the time your written request is received and processed, a month or two will have passed.  I suggest calling the IRS first to see if you can resolve this over the phone or with a FAX.

https://www.irs.gov/pub/irs-pdf/p541.pdf

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3 Replies
KittyM
Level 2

Do I just need to submit an amended return with the correct tax period dates?

Your final tax return is due on the 15th day of the 4th month after you cease operations.  (See Page 3 of the linked IRS Publication 541 on Partnerships for more termination information.)  

The IRS will be unlikely to accept an amended return with a changed termination date after their notice, and since you did cease operations in July, you do not want to lie to the IRS.  What you should do is to respond to the IRS letter with a request for a first time penalty abatement, if you qualify.

To qualify for a first-time penalty abatement, you must have filed all other forms in a timely manner and not have had a penalty or abatement in the previous three years.

I know the penalty can be quite large, and by the time your written request is received and processed, a month or two will have passed.  I suggest calling the IRS first to see if you can resolve this over the phone or with a FAX.

https://www.irs.gov/pub/irs-pdf/p541.pdf

View solution in original post

KittyM
Level 2

Do I just need to submit an amended return with the correct tax period dates?

@zr - edited to add the link.
zr
New Member

Do I just need to submit an amended return with the correct tax period dates?

Thank you so much! Called them up and they were able to apply the first time penalty abatement right away.
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