A client who is in CNC status received a CP71A for each year for which he owes. There has been no change in his situation financially although if I understand him correctly he has been told he is no longer considered terminal and may indeed have beaten the cancer that got him behind on his taxes. He has however also been told that he is still unable to work. My question is what to do about these notices. They do tell him to contact his tax adviser if he has one or to contact the IRS directly if he does not have one. So do I call the IRS or what? Should I do a new collection information statement first?
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As I understand it the IRS is required to send out one of the notices in its CP71 series (CP71, CP71A/B/C/D) once each year to very delinquent taxpayers. These notices serve as a reminder that the tax is still owed, and they disclose the current amount due including accumulated penalties and interest. Although a reply is not required, it would probably be a good idea for the T/P to contact the IRS anyway and give an update of his financial status along with, if pertinent, his health and employment status. The T/P can ask an adviser to contact the IRS for him, and if he does, that would probably necessitate the submitting of a POA. If it hasn't already done so, the IRS can file liens on the T/P's property, then seize that property ... if there is any to lien and seize. Contacting the IRS with an update may very well serve to head off the seize part.Roland Slugg
"I do what I can." -
TY Roland
Now is iit better to call the number on the notices or the PPL?Comment
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I called the PPL. I documented the name and ID # of the very nice lady who told us nothing is required at this time. She said she did not know when or if the service would ask for another collection information statement but they are not asking for one at this time. For now the client is still in CNC status.Comment
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