1099R matching .... are notices always generated?

[LCP]

I had a client come in who didn't realize he needed to report his early distribution in 2011. After all the taxes were "already paid" ... ( you know, withholding, I'm sure you've heard it before).

The thing is, he didn't receive an IRS notice. I'm wondering if they maybe have decided that it's not worth it as long as taxes have been withheld.

[Justataxguy]

They probably haven't gotten a "round tuit" yet. I would offer to amend to see what the difference is.

[Gary2]

CP2000 notices for 2011 would start going out at the end of 2012 and continue through fall of 2013.

[taxea]

CP2000 notices for 2011 would start going out at the end of 2012 and continue through fall of 2013.

Not necessarily anymore. They do have three years to send the CP2000 but, with the comparison in their computer I have seen them being issued in a very short time after the return is filed. They (the letters) are computer generated.

[joanmcq]

It may be different with MEF, but the CP2000s used to come in waves depending on the issue. The first ones were 1099-Bs starting in December. 2011 could have been sent in Legacy or MEF depending on the software used, and whether it qualified for MEF, and what the IRS was accepting at any given moment.

[S T]

Given all of the other Govt and Software delays for 2013 relating to 2012 filings, I am going to guess the CP 2000 notices for 2011 will also be delayed, but they will be arriving. Guessing/Estimating commencing sometime this Summer 2013.

If you know that there is an issue in non-reporting on 2011 - I might think about filing the Amended Return to not only correct for Federal but also for a State Reporting. Might as well save a little interest and/or penalties on both Fed and State and be done with it!

Sandy

[Gretel]

2010

I am curious about these notices too. Retired TP who got quite a bit of income from royalties in 2010 (normally they are so poor to get refunds from the state for a refundable property tax credit) didn't bring his Schedule C stuff (very small) in time. I filed an extension and he owned around $3,000 after taking depletion into account. He never came back to file but should up this week being very mad at me. He got a letter from the IRS (did not bring it with him) that they don't have the tax return to apply the payment to and if he wants to have the amount paid in refunded he needs to file by 4/15/2013. Of course he thinks he is getting the money back. Luckily for me he picked up the papers (always was difficult and all the stupid things he did was my fault).

What I do not understand is how the IRS can even tell him that he could get the money back with the 1099's they have. I am sure he will be owing more because of his Schedule C biz and a 1099 for cancelled debt, which I did not take into account when filing his extension. What is the matter with the IRS?

[BP.]

mad at me . . . got a letter from the IRS (did not bring it with him) . . . how the IRS can even tell him that he could get the money back?

In this case you'd probably want to read the letter to confirm its contents.

[Gretel]

I am aware of this. As I stated client picked up his papers. He even got madder when I asked to see the letter first before doing anything for his taxes.

[joanmcq]

Maybe he called to get his estimates refunded or ask 'where's my refund' or some such nonsense and the IRS responded with the letter saying 'send us your tax return and then we'll talk about the refund'.