CP2000 taxpayer overseas

[Jesse]

My clients daughter is in the Peace Corp serving overseas. Their daughter received a CP2000 for 2007 and the parents do not have POA and they have not been able to contact their daughter.

Deadline per notice is June 10th and their daughter won't be home until the end of August, so any suggestions on what can be done to request more time without proper consent of taxpayer?

[Burke]

If the CP2000 is requesting a missing form, or is about another easily answered question on a return you have prepared, can you not write a letter explaining such? If the 'yes" box is checked on the return that it can be discussed with the preparer, it should not be a problem.

[Jesse]

I did not prepare the return in question. From the CP2000 notice and talking to the parents they think the income in question is from a stipend received for tuition reimbursement, but they are not positive, that is why we need to talk to the daughter.

She filed her own return, is 26 and had wages of just under $8,000 so it appears the only reason she even filed was to receive a refund. With the added $4,000 reported on the 1099MISC the IRS has a balance due of just under $400.

The parents also think she paid around $7,000 for tuition, so it's possible that either the lifetime credit or tuition deduction would reduce this balance to zero. But we won't know for sure until we talk to her.

With no POA and unable to contact her I'm not sure what we can do?

[New York Enrolled Agent]

If the 'yes" box is checked on the return that it can be discussed with the preparer, it should not be a problem.

The third-party designee for 2007 1040 returns expired on April 15, 2009 (one year from the due date of the 2007 return).

[JohnH]

The parents might try calling IRS and explaining the situation. IRS can't discuss the issue with them without the POA, but they might be able to take down information provided and note it in the file. I think there's extra time allowed to respond when someone is out of the country anyhow, but there's nothing to lose in making the call.

It might not hurt to also send a letter via certified mail with return receipt explaining that she's out of the country. It's amazing what a certified mail receipt can do at times if you find yourself needing to explain something to IRS. Sometimes demonstrating good intent and taking reasonable steps can go a long way when the circumstances are a bit unusual.

[Burke]

I vote with the mail suggestion. Use certified if you wish. But a written response will usually do the trick and an extension granted.

[S T]

Fax

Usually on the CP 2000 notices, they often have a fax response number. I have been advised by IRS, they act faster on a fax response, than they react on a mail response. You should be able to obtain a fax transmission report from your fax machine.

I have experienced satisfactory to good results without power of attorney in place, contacting IRS by phone, they make a note on the file, and then when I receive the POA I follow up with a fax of the required documents.



Sandy

[kaimana]

The letter was computer generated and will be regenerated twice more with 60 days between each before they take any further action. If you intend to handle this matter, I would suggest:
1. ask for an email address for the daughter
2. contact her and explain the letter
3. ask whether she wants you to handle it
4. get the necessary information to complete a POA, email it to her and have her sign, date and fax it back to you.
5. call the IRS using the number on the letter. Let them know she is out of the country until some time in August and that you are handling the matter. Get a fax number for your response. The IRS will give you 60 days.
6. If she was able to give you what you need to deal with the IRS. Send them a fax responding to the issue and include a copy of the POA as well as their letter.

[Jesse]

Thanks for suggestions.

Usually on the CP 2000 notices, they often have a fax response number. I have been advised by IRS, they act faster on a fax response, than they react on a mail response. You should be able to obtain a fax transmission report from your fax machine.

I have experienced satisfactory to good results without power of attorney in place, contacting IRS by phone, they make a note on the file, and then when I receive the POA I follow up with a fax of the required documents.



Sandy

I looked over the notice and did not see a fax number, so for the heck of it I decided to call myself. The agent that I happened to talk to was very nice and said not to worry, asked me for the Taxpayers SS#, but reminded me he could not give me any particular information.

He put another 30 day extension on this notice and said not to worry when this runs out, as another notice will go out with a new balance from increased interest and if that notice is not responded to in 45-60 days a certified letter will be issued. The certified letter will give 90 days to respond. The worst thing that can happen is the accruing interest will result in a larger balance due.

I have his name and badge number but hopefully will be able to take care of the matter and not need it.

[joanmcq]

The certified letter is a notice of deficiency. You probably don't want to let it get that far. If she has access to email, you can get a POA and take care of it from there.

[travis bickle]

Glad you were assisted

when you called the service.

I trust that you will follow up with client -- if she has access to the internet, she can download IRS Form 2848, complete it and fax back to you. Hopefully she can get on the 'net.