okay. so this situation is a bit better, but not yet completely resolved.
basically, our accountant says that the insurance company should have filed this document, but the insurance company says some one else should have, and every one is blaming everyone else.
it seems that when the IRS guy spoke with my colleague and quoted him the ridiculous amount of 25,000 USD, this was just an off the top of his head ballpark estimate on his part. this IRS guy has since talked to some of his colleagues and NOW theyre saying it's looking more like 8,000 USD. granted, this isn't awesome, but 8,000 is doable. we can definitely field that amount with some crafty accounting.
once again, this new figure of 8,000 USD is NOT final. the IRS have yet to draft their final report and submit this fine to us in writing. and until they do, the amount can continue to change. heck, for all i know it could jump right back up to 25,000 or even worse. i am much more relaxed over this issue now, but won't be completely at ease until we actually receive all this finalized and in writing.
thanks for listening, all