Quote Originally Posted by taxea View Post
As I posted above. It probably wouldn't take any more time to write a detailed statement with backup documents than sit on the phone waiting for someone to answer. Plus you then have everything documented for future reference rather than just notes from a phone call.
I wrote a summary statement as a cover letter, indicating that we agreed to the one change, and that the CP2000 calculations should be reviewed. On the advice of the helpful agent, I did not attach a full set of revised 1040 forms worksheets and 1040X worksheet, he seemed to think that with his notes on the file at the IRS end, and my faxed cover letter, that alone might do the trick. I certainly agreed with him that I didn't want all the extra work. I sent a fax, not a certified priority paper mail, so I am taking a chance of the NOD being issued, but I'll cross that bridge when I come to it. It shouldn't be this hard to fix a calculation error, d'oh!

The fact is the tax calculation on this revised return is somewhat complicated. Self employed health insurance, premium tax credit, non-refundable tax credits that bring regular tax to zero, SE tax, AGI thresholds changed on Schedule A after missing income taken into account, etc. It turns out that with the extra income, the refundable PTC becomes a very small payback instead, but it is still covered by non refundable credits. The only thing this taxpayer owes is the loss of the refundable PTC, a little over $200. So as you can see the tax owed is very far removed from the additional 1099-OID income.

Because it is so complicated, I don't really want or expect the IRS to re-create the detailed return in their system (although they should be able to?). If this client were coming to me brand new with this problem, it would probably take several hours to figure it all out in terms of changed tax calculations.