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Pinching Pennies

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    Pinching Pennies

    This week I received one copy of a CP504 (notice of intent to levy) for $2.43 in interest, and one response to a CP2000 for $1.00 in interest.

    I would think it costs more to process the paperwork for amounts under $10.


    I would have expected this from California or maybe a few other States, however, my experience has been that if it is less than $ 10 - IRS normally issues the notice with a like amount credit, and then a zero balance.

    I received a credit for $ 1.38 interest on a 2007 CP 2000 notice final in 2009 which brought the clients amount due to -0-.

    All the more reason to file those returns in for refunds of less than $ 10



      Near sighted bean counters. Congress wants the IRS to collect and report collections,and does not care what it cost and that the net result is less net revenue collected.


        About six months ago one of my clients had sent a check in for what I estimated the tax plus interest would be. then the notice came for that amount plus about $5.00. The issue evidently wasn't resolved so I spoke with IRS in Fresno and he had no record of the documentation on stock sales we sent, but he took info over the phone and said that would
        close the case. A later notice billed for the $5.00 but a letter a few days later told client
        that IRS had written it off. Nice of them, I thought.

        Last month after client had sent in $xxx.xx (tax plus my estimated interest) came another letter showing about $ 1.43 more. I told client to forget about it unless IRS send another

        Is this "edge play"?
        Harlan Lunsford, EA n LA


          Taxpayer Advocate complains

          The Taxpayer Advocate has been complaining about IRS collection practices. See this link:

          Evan Appelman, EA


            Audit assessments

            Originally posted by appelman View Post
            The Taxpayer Advocate has been complaining about IRS collection practices. See this link:

            When I was an auditor, I sometimes reported that someone was underpaying the tax slightly due to misunderstanding the law, but that I had explained it to them and that it would cost more for my salary than I could assess by doing an audit. I was never told to do the audit anyway.