I got a Form 5472 penalty notice and now I keep hearing about a 90-day clock. What should I actually be doing before that turns into more penalties?
The notice itself was stressful enough, but then someone mentioned that if the failure continues for more than 90 days after IRS notification there can be more penalties layered on top. That turned what I thought was one notice problem into a timeline problem. I do not want to spend the next two months debating strategy while the underlying issue remains open.
What I need is the operational answer. If the real priority is closing the filing or records gap before the continuation structure kicks in, I want to organize the response around that rather than writing a long explanation letter that leaves the core failure unresolved.
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