My fault or someone else's?

[jimenright]

Aur

The IRS system that generates the CP2000 notices is called the "Automated Under-reporter System" It obviously did not recognize there were two owners of the account and I did not expect it to. It could be that having my client generate a 1099B for the other owner before the return was filed would have prevented the problem but probably not. I would like to know if it would have.

[S T]

The IRS system that generates the CP2000 notices is called the "Automated Under-reporter System" It obviously did not recognize there were two owners of the account and I did not expect it to. It could be that having my client generate a 1099B for the other owner before the return was filed would have prevented the problem but probably not. I would like to know if it would have.

Probably depends on how fast all of the reporting is processed and posted to the accounts - In reviewing or trying to retrieve info on Account Transcripts - this last year is very slow (for 2011).

As posted in other responses on your OP - a lot of work for you - I am still of the opinion the Account should be separated at the "Fin Institution) and reported accordingly -

You did not state the actual facts of the ownership of the account - non joint Tax Filings- other than 2 names and SSN - seems like this can still be accomplished with some Estate Planning and Beneficiary Designations. Then eliminate the need for some of the extra work on Tax Reporting.

Just a thought,

Sandy

[jimenright]

Closed account

The client was not married, thus it was not a joint return. The account was cashed out; the parties are estranged, creating the 1099B. This particular problem will not recur.

I was trying to figure out if I could have avoided the CP2000 and still properly report -- maybe not.