IRS Letter 4883C

[Jesse]

Client called and said they received this letter stating they received the tax return but they need more information to process the return accurately.

They are sending me a copy of the letter but it really peaks my curiosity and I was just wondering if anyone else has had a letter 4883C, and if so why so vague, and what kind of information are they fishing for?

[Burke]

Usually this is a paper return? and it has a form missing.

[FEDUKE404]

What did the letter say?

One would assume the 4883C the client received did make some mention as to WHAT was missing??

FE

[BHoffman]

Not always. My clients have received this form with absolutely no clue in the letter as to what they want. Must get the POA and find out.

[Jesse]

Just received a copy of the letter and it is just that vague! This was an efiled 1040A, the hours of operation are 9-3:00 and the estimated wait time is more than 30 minutes!

What the heck, nothing better to do this time of year than sit around on hold for a half hour!!

[Burke]

Don't you just love it? A 1040-A? Sounds like maybe a kid who claimed himself and the parents' want to -- or did? Or an incorrect SSN? Check that out. Can't imagine an efiled short form falling out for some obscure reason.

[Jesse]

Not always. My clients have received this form with absolutely no clue in the letter as to what they want. Must get the POA and find out.

Got through to IRS and was advised the POA is good only for a processed tax return and because the return has not been processed because they need more information only the taxpayer can call. The letter can be faxed with a phone number and time to call and they will call the taxpayer so a long hold is not necessary. This just doesn't sound legit does it? I don't want to get the taxpayer in trouble with the IRS but I don't want her to give her identity to some thief either. What would you do?

[JohnH]

Get a conference call set up.
Or better yet, send them a letter asking them to respond in writing with their questions.

[Jesse]

This is just strange to me.

Get a conference call set up.
Or better yet, send them a letter asking them to respond in writing with their questions.

I'm going to take your advice and ask in writing. I called the practioner line and they have a hold on the return but because it is the Processing Dept they can't help me. They also said the processing dept is incorrect - they should be able to talk to me for any information regarding the 2011 income tax concerns - not just a processed return.

The processing hours of operation are 9-3:00 (what a joke) and I was on hold from 10:26am until 1:15pm! Thank god for speaker phones!

[JohnH]

Speaker phone is handy for setting up conference calls too. I just ask the client if they will be available for the next hour or so and to look for my call, then I call IRS and put them on speaker while I get some real work done. Whenever they answer, I ask if I can put them on hold for 30 seconds while I call the client and get them conferenced in.

Most of the time they agree, although once or twice they've told me they won't allow me to put them on hold. In those cases, I assumed I was speaking with an inconsiderate jerk who probably wouldn't have been much help anyhow.

The majority of the time they're cooperative, I get the client on the line, they go through the idenitification dance, and we solve the problem right then and there (or at least develop a good action plan). I use this for all kinds of notices to cut through all the POA red tape & other bureaucratic nonsense.

Given the time of the year and all the other pressing needs, you're probably better off just writing a letter. You can always make the call after Apr 15, since IRS isn't going to respond to the letter before then either.

[Koss]

Identity Theft

Jesse wrote:

Got through to IRS and was advised the POA is good only for a processed tax return and because the return has not been processed because they need more information only the taxpayer can call.

That really sounds like a case where the IRS has flagged the return as possible identity theft.

I'm not saying your client actually did anything wrong. But what you're describing is not an audit or examination. I've worked on cases where they do a "pre-refund" audit of EIC. The tax return gets processed, and they get the refund, minus the EIC. And it's a correspondence examination. And they have to honor a POA.

You're dealing with something very different here. I think the IRS wants to make sure that whoever filed that return is really the taxpayer.

The conference call, or speakerphone with the client at your desk, is a great idea.

If I'm right, the IRS is going to ask your client questions to confirm their identity, such as previous addresses, filing status on previous returns, and maybe other questions that only the taxpayer would know, such as whether a previous year's return was filed by mail, through DIY software, or through a tax pro, the name of the tax pro, if applicable, and what month it was filed. And previous employers.

Apparently the problem of tax refund identity theft has exploded in the last couple years.

Criminals have figured out how to file electronically with a bogus Form W-2. They use a valid EIN, like one from Wal-Mart, or any other W-2 they can get their hands on. Before filing the return, they open up a prepaid debit card account--one of those cards you can buy hanging on the rack at the grocery store. They set up that account in the name of the taxpayer, and then use it to get the fraudulent refund by direct deposit.

Just saw this article today:

http://www.cnn.com/2012/03/20/us/tax-refund-scam/index.html?hpt=hp_bn2

As usual, the article mangles a few facts, and tends to sensationalize things a bit. The one point that is valid is this: The Achilles' Heel of the whole system is the fact that a taxpayer can use DIY software to file electronically, and as long as the EIN is valid, the IRS does not confirm the data on the Form W-2 until long after the return has been processed.

BMK