retirement fund contributions matching

[ChEAr$]

Just curious maybe but it's a good question.

Has anyone ever seen a CP2000 or other notice from IRS telling taxpayer that no
such contributions to IRA, SEP, simple, etc were reported to them; and therefore they
propose disallowing the deductions in adjustments section on page of 1040?

Reason for asking is new client's 2007 return was prepared by another EA in town who
placed an amount of 2300 on SEP line when both spouses were employees only and I'm wondering if/when IRS might notice it.
(There were also exactly 3000 for contributions and 500 on the non cash contributions line!
if you get my drift.)

[S T]

cp 2000

Just received CP 2000 notice for 2006 tax year. Disallowed IRA deduction as IRS records did not match deduction on t/p's tax return. I had to send confirmation of contribution to IRS, then they allowed the deduction. IRS system did not have the correct information on form 5498 reporting.

Sandy

[JG EA]

I got one where the spouse's name did not exactly match on the IRA contribution. Sending in a copy of the contribution was all that was needed (with an explanation of the name difference).

[ChEAr$]

thank you both

I was hoping that IRS could indeed match things up, eventually.

BTW, it just occurred to me, that maybe I should "turn in" that other EA in my town
for such malfeasance. (grin)

What do y'all think?
(another grin)

[DTS]

harlan

I had a fellow that wanted and did put down a traditional IRA on the return. Went to the bank to add to his acct and the fellow there talked him into putting that money into a Roth instead.

He got the letter!

D

[S T]

Tempted

Harlan, there have been so many times over the years, I have been tempted to turn in a tax preparer, regardless of their professional designation or lack of designation. Decided I didn't need to spend the time, and the bad karma, and in the end what goes around comes around!

I really don't think we would receive any satisfaction in doing so!

I have already encountered 2 returns this year which were unbelievable, and we are talking about 2008 tax filings that I was asked to check before t/p filed the return! One return didn't even have the preparer's name and info, and the other return was just so wrong, you wonder!


Sandy

[JG EA]

BTW, it just occurred to me, that maybe I should "turn in" that other EA in my town
for such malfeasance. (grin)

What do y'all think?
(another grin)

Stop saying that!! (Chinese lady to Monk.)
1. Don't assume the other preparer was wrong. You don't know the whole circumstances.
2. Would you want someone turning you in on a perceived mistake? What if you just goofed? What if you had a good reason and would like to explain.
3. ST said bad karma. I say bad attitude. Are we really that smart and 'first stone proof'?
4. Just correct things or suggest corrections.
5. Do you not belong to a professional organization that has in its by-laws not to put down other professionals?

[ChEAr$]

Wow!

Stop saying that!! (Chinese lady to Monk.)
1. Don't assume the other preparer was wrong. You don't know the whole circumstances.
2. Would you want someone turning you in on a perceived mistake? What if you just goofed? What if you had a good reason and would like to explain.
3. ST said bad karma. I say bad attitude. Are we really that smart and 'first stone proof'?
4. Just correct things or suggest corrections.
5. Do you not belong to a professional organization that has in its by-laws not to put down other professionals?

JG EA. Did you not see my grins? there were two of them I think.

it sure helps in this business to have a sense of humor.

[JG EA]

Yes I did. Sorry! Just venting. All better now.