Was the money debited from your account? If not pay the 4K you owe and the CPA firm will pay the penalties and interest if any. Then fire the CPA

Do you or anyone else have the return receipt from the PO?

If not I’d hit up the CPA for the $4k.

Good luck getting it.

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Civilize the mind, but make savage the body.

- Chinese proverb

PS:

California has done this to us, told us they did not get our return and issued a penalty.

We e-filed it and had proof they received it.

We never heard from them again.

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Civilize the mind, but make savage the body.

- Chinese proverb

We paid the taxes on time; overpaid in fact. The 4k is penalty for failure to file

That's on the CPA. Tell them to sort it out, once it is sorted, fire them.

Call the CA franchise tax board and request a transcript. Basically you want to see if the tax payment was posted correctly and what date- compare this with your cancelled check to make sure it agrees. Also the transcript will show if there are any other adjustments they may have made.

failure to file penalties are usually based on unpaid tax, so I’m surprised that your fine is so high when you state that you paid/overpaid

You (or your tax preparer) can request an abatement of the penalty

https://www.ftb.ca.gov/...ls/faq/ivr/402.shtml

Something sounds very wrong, you overpaid your taxes, but didn't file the paperwork for one year and they are charging you $4k? Your CPA should be taking responsibility for not turning in the paperwork. Your OP has a grammar problem so not sure if you mailed the paperwork in or the CPA did. If you did, then the CPA might have an out.

My understanding of the point of hiring a CPA is to take care of the paperwork, and make sure you pay what you owe. Your job is to write 2 checks one to the CPA firm and one to the IRS. Seems you did your job.

Does the CPA think $4k for not filing your tax forms is appropriate? How do you pay your taxes but not file the paperwork, don't they go in together?

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Just Triing
Triathlete since 9:56:39 AM EST Aug 20, 2006.
Be kind English is my 2nd language. My primary language is Dave it's a unique evolution of English.

Quick look at fed. and California tax fee's the fed doesn't charge a late filing fee if you don't owe taxes.

California seems to base all the fee's off the taxes do, but can't find anything that says it charges if you don't owe.

The closest thing I found was this, which is a bit different then we didn't file.

Nonqualified/Nonregistered, Suspended, Forfeited Penalty
We impose a $2,000 penalty on entities who fail to file a tax return within 60 days after we send a demand to file. This penalty applies to the following entities doing business in California:

• Nonqualified, suspended, or forfeited corporations.
• Nonregistered, suspended, or forfeited limited liability (R&TC Section 19135).

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Just Triing
Triathlete since 9:56:39 AM EST Aug 20, 2006.
Be kind English is my 2nd language. My primary language is Dave it's a unique evolution of English.

Did you forward the letter that you recieved to the CPA? What did the CPA say?

The CPA sent in the paperwork.

Did they offer to follow up and protest or file any paper work to overturn this with proof of submission?

All this just came to light this week. Between all the Christmas and New Years stuff all the correspondence has been text/ email. After the 1st we'll have more in depth conversations.

Sounds a little fishy given DaveHamm's post above.... But as far as CA is concerned the 4K is on you unless you have some proof of sending/filing. But as between you and the CPA, the 4K is on them