LLC IRS Trouble Form 1065 Fines

[Amanda Buckson]

I'm in trouble!!! I'm a very passive investor and still new here and very green.  I set up an LLC in June of 2017. Intent was to someday use it for purchasing rentals or quit-claiming our one rental into it's name, but it's really just sat there. I recall getting the letter that the LLC was created, glancing over it briefly, filing it away and thinking Yay! Here in Texas we don't have to pay anything to keep it yearly so it's just been sitting there. I received the State Franchise Tax letter that said I needed to file and for the last 2 years I've just filled it out online to show we've had no activity. I've recently been toying with the idea of starting a small business and finally sought the advice of a tax adviser. I told him about the LLC and looked a little closer at the letter. I then saw the requirement to file Form 1065 and noticed it had a deadline of March 15th, 2018! The adviser told me I needed to submit the 2 overdue forms ASAP and because we are 14 months late the fines could be near $5000-6000!!!! He's currently putting together my 1065s and is going to charge me somewhere between $300-$400 to take care of this. He said when I get the IRS bill for the fines that he'll help me call and get it reduced. I just wanted to see if anyone here could weigh in on the subject. My husband questioned the need for the tax adviser. He is thinking we just call the IRS and plead our case and work directly with them. So, question is do we let the tax adviser file the forms and charge us or do we call and share with the IRS how ignorant we were and beg for mercy ourselves?