CP Notices

[JG EA]

Have you been receiving an unusual amount of CP notices. Are the new 6000 agents working hard?

[erchess]

Sorting

You might have wanted to sort out those of us who mainly help answer notices where we wrote the underlying return from those of us like me who do a lot of notices when we didn't write the underlying return. Even in tax season I spend half my working hours helping people settle disputes on returns I didn't write. During the rest of the year that's pretty much all I do. In 2011 I have had four CP Notices and all were on returns I did not write and in all cases part of the price paid by the client has been a handshake that I will write their next filed return. Nearly all keep their word.

Another thing you might want to sort for is our relative levels of knowledge and concern about the kind of notice a client has received. I've got to admit I wish I knew what the codes mean but I don't. All that really dictates my responses to letters is the text of the letter. I can see where it would be helpful for example to know how a CP notice differs from other kinds and how a CP2000 differs from other CP notices.

By the way can anyone tell me where to find info on types of notices? If you tell me it's on the TTB web portal or the IRS Website that would be sufficient. I guess all I have mustered on the subject is idle curiosity with emphasis on the idle.

[JohnH]

Edwin:
Do you mean something lik this?

http://www.irs.gov/individuals/article/0,,id=123355,00.html

I had never thought about where the "CP" even comes from, but I learned when looking this up that it means "Computer Paragraph".

[erchess]

TY John

I appreciate that. However I was hoping for a list of all the numbers. On the other hand the way I read what's there I really don't need to know that information which would explain why I have never been taught it even in continuing ed I did after going out on my own.

[veritas]

I got one for my 2010

tax return.

They are really messed up.

When I spoke to the agent on the phone, she said this was the worst year she had seen in her entire career of 16 years.

[joanmcq]

I voted no, but I did get to LTR letters for registered domestic partner returns that they say they couldn't process under the new rules in CA.

Sigh.

[Snaggletooth]

Interpreted

The original post specifically asked for how many of these things we have received in 2011.

I answered the poll based on:
1) How many my clients received, not me personally, and
2) How many I've received in the last 12 months, not just 2011.

I'm hoping this is what the OP intended...

[JG EA]

The original post specifically asked for how many of these things we have received in 2011.

I answered the poll based on:
1) How many my clients received, not me personally, and
2) How many I've received in the last 12 months, not just 2011.

I'm hoping this is what the OP intended...

I did mean in 2011 but, sure that is fine. I got 4 (and yes I mean my clients did) between 04/15/11 and 04/20/11. I did get some last year also. But only 3 all year. One of them was my return! All of those were IRS mistakes. Of the 4 this year, only 1 was a legitimate error.

[JG EA]

tax return.

They are really messed up.

When I spoke to the agent on the phone, she said this was the worst year she had seen in her entire career of 16 years.

She meant worst year for IRS errors?

[S T]

Cp 2000

Ugh! - I am now up to 4 notices - that is a lot for me and my practice all for 2009 Tax Year,

So far all seem to be for unreported income -
one was a 1099 Misc for what seems to be a wage overtime dispute class action - but client did report similar one W- 2 form for that year - Not sure about this one at all.

Two others are for 1099R distributions from 401K or IRA rollovers - that clients neglected to let me know about for 2009, the clients are saying I didn't tell you as I didn't believe it was taxable - (they deducted taxes - so I thought all was taken care of) DUH! - plus penalties for code 1

Another one is a HSA distribution - and on that client I have correspondence asking was there a contribution and was there a distribution - so this one I can solve.


Another one is where the spouse died in 2009 - and received some disability distributions from the State, and I have correspondence from the surviving spouse that she states she did not receive, but since then she passed away in 2010 and now the daughter is handling - this one could be a mess!

Can hardly wait for the this next week to see what I receive

Sandy

[dkss]

IRS errors

Client brought a cp2000 notice in last week. The cp2000 notice was for tax year 2009, and the original return was electronically filed.

The IRS was decreasing his tax due by $12, because they did not take into account the uncollected tax that was reported on the original return. The IRS also "lost" $600 in fed tax withholding. The client is a gambler with multiple w-2g's and somehow the IRS is only showing 8 w-2g's with FTW and there were 9 w-2g's with FTW.

How can these errors occur on an electronically filed return?

[TaxmannEA]

I'm beginning to think that the IRS is having some sort of issue with their 2009 document matching program. A client just dropped off a CP-2000 for 2009 that shows a large increase in pension income. The wage & income record on E-services shows less than we originally reported on the return. The question that I have is: Where did they get their numbers if their own system doesn't agree with the notice?

[S T]

More Notices Received

Two moe CP 2000 Year 2009 notices this week

One partially incorrect in that IRS assessing self employment income on Farm Rental - so net is $ 97 on unreported USDA payments. rather than $ 175 per assessment.

The one today is aggravating - has to do with Social Security Benefits Lump Sum received in 2009, reported in 2009 - and the return clearly has the election for "LSE" for a less taxable amount. So amount was reported, but a lesser amount entered as income.

What s up with this document matching program, now. Do we now have only clerks reading #'s and no tax notations, and do not know how to enter in the computer to generate accurate CP 2000 assessments, if any notices should be issued.

Sorry, I am venting!

Sandy

[JG EA]

I know! My court is now 6. And they aren't even reading what is right on the tax return!

[WhiteOleander]

We received one disallowing the withholding claimed. The w/h was reported on a W-2 and a SSA1099. So this info is readily available to them. We have received an unusual # of Cp2000s in our office also. Some are coming in that were DIYers. So, maybe the IRS is actually tracking them.