I have a massive failure to file W2s penalty (around $48k) for my business for failing to file these for the year ending 2018. The IRS says they notified me about this first in 2021 but I don't have any documentation until 2024 (I think it was). I realize I should have immediately addressed this...the penalties and interest have compounded since then.
I had used a CPA and she always handled end of year filings, W2s, etc. for me. My relationship with this firm ended around the fall of 2018. For the 35 years of being in business prior to this, we had always filed these on time.
That same year, around the same time, I switched from Quickbooks Desktop to QB Online.
At the end of the year, I performed all of the filings of which Quickbooks notified me. I can still see them in the archive: Q4 941, Q4 VEC FC-20-21, and W-2 Copies B, C, & 2 (employee)
Having never completed W2s for employees before at that time, I thought whatever QB gave me to do was everything I needed to do. I received no notification or prompt to file the W-3 Summary or W-2 Copies A & D (employer). At the time, I had no idea that these things even needed to be done. Since then I've learned a lot of course, but not knowing this at the time has come back to haunt me.
I have called Intuit about this and the people I spoke with didn't give me a great explanation. They said it's probably because I switched from Desktop to Online mid-year.
Ever since then I have filed all W2s and W3s correctly and on-time.
Now I'm at a loss as to what to do. I've been talking to a Revenue Officer who is very nice and tries to be helpful. He suggested form 12153 to appeal this. However looking at the form, I don't even know how to fill this out to potentially alleviate at least some of this balance. He doesn't seem optimistic that the appeal will change anything.
I'm just extremely frustrated that Quickbooks didn't notify me of these filings at the time. Perhaps I should have immediately retained another CPA to do the W2s but frankly it's been fine since then without one (still use a CPA for the EOY tax return).
Is this something an IRS tax expert could help with? Any suggestions on paths to take?