How much can I rush things?

[erchess]

By Tuesday I should have a non filer's returns for 08 and 09 ready to send in. 10 was done timely and refunds received. What happened in 08 and 09 need not detain us here. The end of the current engagement will be when I have Federal and State Installment Agreements done. My goal is to get this done as quickly as possible because I really don't want this in my hair after Christmas much less the first of the new year. So what course of action will come closest to my ideal?

If it were not close to the end of the year I'd have the client mail in the returns and wait for responses at which time I'd call in and do the IAs.

I'm wondering if there is any point in calling in to the number on the notices we have or to PPL and asking if I may fax the forms in right then and get the matter taken care of? Anyone ever done that? And what about NC which has not so far complained but has a program begging non-filers to come back into the fold?

[ChEAr$]

By Tuesday I should have a non filer's returns for 08 and 09 ready to send in. 10 was done timely and refunds received. What happened in 08 and 09 need not detain us here. The end of the current engagement will be when I have Federal and State Installment Agreements done. My goal is to get this done as quickly as possible because I really don't want this in my hair after Christmas much less the first of the new year. So what course of action will come closest to my ideal?

If it were not close to the end of the year I'd have the client mail in the returns and wait for responses at which time I'd call in and do the IAs.

I'm wondering if there is any point in calling in to the number on the notices we have or to PPL and asking if I may fax the forms in right then and get the matter taken care of? Anyone ever done that? And what about NC which has not so far complained but has a program begging non-filers to come back into the fold?

I can't address NC issues of course, but is the federal total for both years less than $25000? If so, just send that installment form in with each return.

[erchess]

The same form?

or one made out for each year?

[ChEAr$]

or one made out for each year?

one per year, since returns are being mailed in separate envelopes. Right? grin

[JohnH]

I think you're going to have to mail them in and wait for the assessments. You can approximate the P&I, but the actual calculation will be based on when they receive the returns.

But once the assessments arrive, it's usually only a matter of a phone call to get the years combined and the IA set up (provided the total balance due is less than $25k). You don't even need a POA to do that, provided you have a way to conference the client in on the call to IRS.

[taxea]

If you have any idea at all as to how much the client owes then I would do an IA, sent separately with the first payment, and include an explanation that details each year with an intention to amend it, if necessary, once all of the returns have been posted.

This will assure that you ate done with it at least until the IRS responds.

[Gary2]

Isn't there a discount for setting up the installment agreement online? Or is the discount just for setting up direct debit?

In any event, I'd be inclined to contact the phone number on the form to confirm the mailing address. It can't hurt to ask about faxing; the answer may or may not depend upon which campus you get, how many pages are involved, or how urgent it is.

You may also want to ask about any notations that should be made. I'm reminded that at the IRS forum I attended earlier this year, one of the suggestions was that if you choose to file a 1040X in response to a CP2000, you should write "CP2000" across the top of the 1040X, to ensure the IRS mail room routes it appropriately.

[taxea]

Isn't there a discount for setting up the installment agreement online? Or is the discount just for setting up direct debit?

In any event, I'd be inclined to contact the phone number on the form to confirm the mailing address. It can't hurt to ask about faxing; the answer may or may not depend upon which campus you get, how many pages are involved, or how urgent it is.

You may also want to ask about any notations that should be made. I'm reminded that at the IRS forum I attended earlier this year, one of the suggestions was that if you choose to file a 1040X in response to a CP2000, you should write "CP2000" across the top of the 1040X, to ensure the IRS mail room routes it appropriately.

1. yes it is cheaper if you pay online and I think no fee if you allow for direct withdrawl

2. the mailing address for IA form when not filed with the return is in the instruction booklet for the form.

3. If I do a 1040X as a result of receiving a CP2000...I attach a copy of the notice and fax or mail it to the fax # or address on the CP2000. If there is no fax #, I call and ask for one then send it to the attn of the person I spoke with.

[JohnH]

There's alway a fee.
The fee is lower if the taxpayer chooses direct deposit.
There's no discount for doing it online.

http://www.irs.gov/individuals/article/0,,id=243335,00.html

I don't think multiple years can be combined onlIne. There will need to be a conversation with someone ( or a written request). Provided the taxpayer meets the guidelines, it should be a fairly short conversation.

But before you have the conversation, you need to have up to date totals for both years, including accumulated P&i, in hand. This means waiting until the returns are processed and adjustment notices are mailed out. I think a wait of about 4 - 7 weeks after filing is inevitable. Having multiple years involved is the issue that creates complexity here.

Edwin, i inderstand your desire to wrap it up quickly However, if you make any IA arrangements before the process advances normally, the client is going to be getting all sorts of confusing notices with various amounts on them, and you will wind up spending more useless time explaining the notices. A notice that comes out after the IA is set up might even trigger a default in the system, which will cost you even more time and effort to get it reinstated.

[Gary2]

3. If I do a 1040X as a result of receiving a CP2000...I attach a copy of the notice and fax or mail it to the fax # or address on the CP2000. If there is no fax #, I call and ask for one then send it to the attn of the person I spoke with.

The point of the suggestion about writing CP2000 across the top of the 1040X was to do it in addition to including the notice letter. Papers have a habit of getting separated in the mail room.

I'm reminded of my summer between freshman and sophomore years of college, when I worked for a temp agency. My first assignment was at a small brokerage on Wall Street, filling in for a mail clerk, mostly delivering mail. But at one point, I was asked to feed letters through the automatic letter opener, and was horrified when I realized that among the contents was a stock certificate that I had just neatly sliced in two. Of course, that wasn't as bad a problem as I feared, but those are the things that happen in busy mail rooms.

[taxea]

JohnH...you talking to me? is this about the suggestion that the IA show a combined total of all years owed?
If so, I send the IA via snail mail and include a list of each year with a letter of explanation.

Any necessary adjustments can be made once the returns have been posted by the IRS and you can obtain accounting transcripts via E-Services to review and determine whether any adjustments are needed.
I haven't had a problem doing it this way.

[JohnH]

I think we are saying the same thing regarding the fact that the returns must be filed and then there will be a 4-7 week wait until the tax, penalties, and interest are assessed.

I don't do IA's by snail mail if the client meets the guidelines. Usually a conference call can take care of things in about 15 minutes. For a single year, it can be done automatically, but for multiple years it's necessary to talk to a person at IRS.

I guess that was your post I was responding to regarding the fee. There's always a fee unless the client wants to pay it off in 120 days or less (although it is possible to extend that a little bit and still pay no fee.)