N400 Interview with late tax fee - can't contact IRS

[triterp80 1]

N400 interview is scheduled for 12/29.  In the questionnaire I specified I had no back taxes due (all owed taxes paid), which is still true, however I found out I owe a late fee/penalty from several years ago, which I haven't paid yet, purely because I didn't remember I had to pay it.  It is a lousy excuse but it is true.

I just discovered I owe this fee.   The tax penalty is for an LLC I own.  My personal taxes are paid and up to date.  They say the only way to discuss or get on a payment plan for companies is to call the IRS number (for personal taxes you can get transcripts and records online, but not for companies).  I've done that for the last 2 weeks straight and each time I call, the IRS hotline disconnects me saying "unfortunately we are unable to handle your call at this time due to high call volumes, please try again later".  I have spent hours each day trying to get a hold of them but they always disconnect me.  My goal here is to get on a payment plan or negotiate down the penalty but it's impossible without actually getting them on the phone.

I even tried contacting an attorney but the power of attorney they need to help me requires 6 weeks before it is executed.  The attorney is powerless to do anything for me until the POA comes back which will be long after the interview.

I am well aware this is all due to poor planning on my part, but it's the situation I'm in.

In short, my only option appears to be to pay the late fee which is several thousand dollars.  

Here's my question: has anyone had any experience being interviewed and explaining away a late fee... essentially saying that we want to pay it but we want to get on a payment plan or have an attorney handle it.  My fear is because it's several years late, they will see this as being irresponsible.  

With 5 years of personal taxes in good standing and never late and this one blip in my LLC, do I stand a chance explaining the situation or do I take the hit, pay the large fee before the interview, knowing that there will be no chance to get that money back from the IRS after the fact if we try to get it lowered or get on a payment plan?

Sorry for the long winded question.

tldr: stated I owe no back taxes on questionnaire, in good standing on all personal taxes, late fee (but taxes paid) for LLC, can't get in touch with IRS, should I pay the large fee to avoid possible risk with interview or take my chances at the interview?

 

Thank you!

[RandyW 149]

They are concerned about your income, NOT where you stand with the IRS. 

I doubt that you're talking about a criminal violation here.

 

Edit - I see this is past history now. Hopefully, you saw your way through.

Edited January 1, 2022 by RandyW

[Elle Worth 21]

On 12/20/2021 at 12:19 PM, triterp80 said:

N400 interview is scheduled for 12/29.  In the questionnaire I specified I had no back taxes due (all owed taxes paid), which is still true, however I found out I owe a late fee/penalty from several years ago, which I haven't paid yet, purely because I didn't remember I had to pay it.  It is a lousy excuse but it is true.

I just discovered I owe this fee.   The tax penalty is for an LLC I own.  My personal taxes are paid and up to date.  They say the only way to discuss or get on a payment plan for companies is to call the IRS number (for personal taxes you can get transcripts and records online, but not for companies).  I've done that for the last 2 weeks straight and each time I call, the IRS hotline disconnects me saying "unfortunately we are unable to handle your call at this time due to high call volumes, please try again later".  I have spent hours each day trying to get a hold of them but they always disconnect me.  My goal here is to get on a payment plan or negotiate down the penalty but it's impossible without actually getting them on the phone.

I even tried contacting an attorney but the power of attorney they need to help me requires 6 weeks before it is executed.  The attorney is powerless to do anything for me until the POA comes back which will be long after the interview.

I am well aware this is all due to poor planning on my part, but it's the situation I'm in.

In short, my only option appears to be to pay the late fee which is several thousand dollars.  

Here's my question: has anyone had any experience being interviewed and explaining away a late fee... essentially saying that we want to pay it but we want to get on a payment plan or have an attorney handle it.  My fear is because it's several years late, they will see this as being irresponsible.  

With 5 years of personal taxes in good standing and never late and this one blip in my LLC, do I stand a chance explaining the situation or do I take the hit, pay the large fee before the interview, knowing that there will be no chance to get that money back from the IRS after the fact if we try to get it lowered or get on a payment plan?

Sorry for the long winded question.

tldr: stated I owe no back taxes on questionnaire, in good standing on all personal taxes, late fee (but taxes paid) for LLC, can't get in touch with IRS, should I pay the large fee to avoid possible risk with interview or take my chances at the interview?

 

Thank you!

Hi! I hope your interview went well. Best Wishes!