"The penalties are removed."
That's what the IRS agent told me on the phone. I hung up and called my client with good news.
Then the letters kept coming.
If you have ever been told one thing on the phone and then opened an IRS envelope that says something else, you know that sinking feeling. An IRS FOIA request is how I get the paper trail. You did everything right. Someone at the IRS agreed. And now you have nothing in your hand to prove it.
Here's what happened in my client's case, why a phone call is not proof, and how a Freedom of Information Act (FOIA) request can help you show what the IRS actually did on your account.
What happened to my client
My client filed his business extension on time. He also paid his estimated taxes with his 1040 extension.
There was a catch. His S election wasn't finalized yet in March 2026, when the extension was due, so he filed it as a partnership extension. The IRS approved his S election in July 2026.
Then the IRS assessed penalties against the business for not filing the 1120-S and not filing an extension.
I called the IRS. The agent told me the penalties were removed because the partnership extension was filed on time.
Then more letters came, saying his business extension had been accepted. That sounds like good news, but read it carefully. An extension gives you more time to file. It does not give you more time to pay. The IRS says it plainly in the Form 7004 instructions: "Form 7004 does not extend the time to pay any tax due." So a letter saying the extension was accepted doesn't settle the late-payment side.
I called again and asked for a letter confirming the penalties were removed. I was told one would be mailed to my client.
But I've lost count of how many times I've heard from the IRS that they "can't mail letters."
Why a phone call is not proof
The IRS does accept some penalty relief requests by phone. Its own penalty relief page says that during the call, the agent will tell you if your relief is approved. If it can't be approved by phone, you can ask in writing with Form 843.
The problem comes later. A new notice shows up. A different department sees a balance. Someone asks you to prove the penalty was removed, and all you have is your memory of a conversation.
That's why I tell every client the same thing: get it in writing. And when the IRS won't send it, there's a way to ask for the IRS's own records.
What a FOIA request is
The Freedom of Information Act gives any person the right to ask federal agencies, including the IRS, for their records. For your own tax records, the IRS also processes the request under the Privacy Act and uses whichever law gives you more access.
A few things to know before you file one:
- It only covers records that already exist. The IRS doesn't have to create a new document or write you a summary.
- Some things can be held back. FOIA has nine exemptions. One of them covers internal IRS memos about decisions not yet made. If part of a page is withheld, the IRS has to release the rest and show where it cut.
- You can appeal. If records are denied, the IRS has to tell you why and tell you how to appeal. The appeal generally has to be postmarked within 90 days of the denial letter.
How to send a FOIA request to the IRS
The IRS lists three ways:
- Online, through the IRS FOIA Public Access Portal. You sign in with ID.me, and you can check the status and send messages there.
- By fax. For personal or business taxpayer records, the IRS fax number is 877-891-6035.
- By mail, only if you can't use the portal. For personal and business taxpayer records: Internal Revenue Service, GLDS Support Services, Stop 93A, Post Office Box 621506, Atlanta, GA 30362.
Send it one way only. The IRS asks you not to mail a request you already sent through the portal.
A proper request has to include:
