Mendon Community Business

“Client Note 1 - Statement of Reasonable Cause for Initial Filing on PaperThis is an unusual return since it covers an accounting period of less than 12 months without it being the Organization's initial or final return. The Organization is changing its year end from August 31 to December 31.The Organization relied on a CPA using Lacerte professional tax software to prepare the return. When the return was ready to file timely before May 16, 2022, the tax software refused to e-file it and reported a diagnostic stating "Short period returns cannot be filed electronically, except for short period final returns or initial returns". A copy of the diagnostic page dated May 11, 2022 is attached.Therefore, the Organization timely filed the return on paper by May 16, 2022.On August 23, 2022, the Organization received in the mail from the IRS a letter LTR 2695C along with the original paper return. The letter states the paper return cannot be processed and must be efiled. At this point, the Lacerte tax professional software apparently has been corrected to allow e-filing of this return and we are hereby doing so.The IRS letter also states the IRS must receive the e-filed return within ten (10) days of the letter's date of August 11, 2022 to avoid penalties. This requirement was impossible to meet since the organization did not receive the IRS letter LTR 2695C until August 23, 2022, twelve (12) days after the date of the IRS letter. As you can see, the Organization timely filed this return by May 16, 2022, and is refiling it electronically as soon as possible after receipt of the IRS letter LTR 2695C. The Organization is tiny, with total assets of only $1,059. The Organization respectfully requests abatement of any penalties due to reasonable cause.”

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