Audit Reconsideration

[OtisMozzetti]

A lot of clients, almost always those who did not file the return with me, come to see me bringing along a statutory notice of deficiency letter. I typically prepare an "audit reconsideration" request which explains what portion of the disputed tax which they appear to owe, which provides an amended return, and which asks the IRS to go back and consider the taxpayer's case.

I believe that most of these end up being considered by the IRS which makes a decision based upon the facts of the case. My question, though, is whether the IRS is going to start deciding that "if you didn't reply by your earlier response deadlines, you owe us--tax, penalties, and interest--even if your underlying tax liability didn't exist"? I believe that is already true, but I suspect that the IRS does not often enforce it.

[S T]

I have been in the same place over the last few years on clients, that forwarded the CP2000 late and they are in the deficiency period - so far so good, if I send the needed information in to correct account either minimize the "deficiency or tax due" or end up with a "no change on the account"

I believe the IRS uses this as a tool to get "Taxpayer Attention"

I also question, when IRS will say - No-No - we gave you (client) time to respond and you did not!

On the other hand - if the IRS expects the "Taxpayer" to respond to a notice within a time frame - why does it take " so long" for the IRS to process response and respond to the Client/Rep response - and then simply state "we received your communication and are reviewing" and it will be another 60 days, etc (not exact wording) IRS receives delays - but Taxpayer does NOT

I know this statement will be related to California only - but just received a "boiler plate" from FTB, that they received a response from us on a "erroneous notice" all documented (based on a IRS adjustment CP 2000 notice record - and that FTB "due to workload constraints, it may take several months to resolve your protest" Excuse me - FTB arbitralily sent out "wrong" info from IRS records, or did not look at the adjustments made, responded to and now they can not process timely. They only provided 30 days for the T/p to respond. Excuse Me!

All seems to be intimidating and onse-sided

My 2 cents

Sandy




IRS can not process any response's timely, but they do expect the Taxpayer to process timely action.

Something not quite right here.

Sandy