IRS Delays

[Tax Sleuth]

I prepared and submitted a client's individual overdue tax return along with their payment in July with my representation letter requesting an abatement of penalties due to reasonable cause factors and requested a written response from the IRS. I called the IRS early last month to inquire about the status of the case and was told it is still being worked upon in the IRS' Substitute for Return department. It has been about two months since the IRS started working upon the case, and it has been around three months since I originally submitted it to the IRS. I was informed that the IRS did not start working on it for about a month after receiving it due to "work volume". I have not to date received any written response or any other type of communication from the IRS. I do have a POA on file for this tax matter for my client. Therefore, is the IRS required by law to give me a response within a definitive amount of time? Should I wait any longer before again contacting the IRS on behalf of my client?

[mlinderEA]

Irs delay's

I have found that it can take up to a year for them to process past years return especially when a SFR had been done.I have a client that I filed 1999 thru 2010 last summer the 2007 return was finally processed in July of this year,They sent letters as they did each year saying if he owed or not,I think this part of IRS is way behind just have patience.

[Tax Sleuth]

Representation Options

I am still wondering though whether the IRS is supposed to operate within a certain time frame in these kinds of cases. Is there any rule that IRS is supposed to follow? Furthermore, wouldn't it be wise for me to contact the IRS in writing again if I don't hear from them soon in regards to this matter? I honestly don't believe a year is a reasonable amount of time to have to wait for a response in this type of situation.

Furthermore, I have an additional question. Can penalties related to an overdue tax return that has been subsequently prepared and sent in to the IRS be legitimately disputed as part of an Equivalent Hearing (EH) for a client if the client had received a Statutory Notice of Deficiency in the past in regards to that same overdue tax return? The client never responded to the Statutory Notice of Deficiency.

[ChEAr$]

I am still wondering though whether the IRS is supposed to operate within a certain time frame in these kinds of cases. Is there any rule that IRS is supposed to follow? Furthermore, wouldn't it be wise for me to contact the IRS in writing again if I don't hear from them soon in regards to this matter? I honestly don't believe a year is a reasonable amount of time to have to wait for a response in this type of situation.

.

In a word, no. The explanation about "due to volume" is entirely enough of a response.. However, I doubt it will take a whole year to process the return. More like six months or thereabouts.

One thing we learn in this business is to be patient.

[mlinderEA]

Irs delays

All together I filed 12 years of returns all at the same time they started being processed in about 90 days but the last one took about 13 months.I was able to reduce his monthly payment in half once they processed all the returns.Every time I asked before that return was processed they said I had to wait till all returns were processed before they would reduce the payment.

[Tax Sleuth]

Representation Options

Thank you. I appreciate all of the above feedback and will keep the points that you have mentioned in mind when I speak with my client. However, I'm still wondering about the other question that I have asked. Once again, it is the following:

Can penalties related to an overdue tax return that has been subsequently prepared and sent in to the IRS be legitimately disputed as part of an Equivalent Hearing (EH) for a client if the client had received a Statutory Notice of Deficiency in the past in regards to that same overdue tax return? The client never responded to the Statutory Notice of Deficiency.