IRS CP 2000 for 2011

[S T]

Major gripe, I had 3 clients from March 11 to April 1, 2013 receive CP 2000 notices on 2011 Tax Returns, like we really have time to deal with these at the most intense time of Tax Season Filings -

On all 3 notices, it is apparent either the Computer can not match, and/or any clerical staff dealing with these notices can not read or think.

One notice was on a zero loss/gain on Employee stock and the appropriate Schedule D and Form 8949 was present - $ amounts were just slightly different, but clearly reported

One notice, was on Unemployment Benefits received from the State, which was reported, and clearly on line 19 show a repayment of benefits for the amount IRS is looking for and assessing tax on

And the other notice, was an IRA that was contributed to in error, and then removed, and also clearly indicated with the Tax Return filing.

What a lot of wasted time and energy on our part as a Tax Preparer, and the mere fact the Client receives an IRS notice of course sends the Taxpayer's Blood Pressure to a higher level.

I don't know what we can do to correct this at the IRS level for future on the document matching program - but erroneous notices cost not only the IRS, but us as Preparers as well.

Sandy

[Snaggletooth]

Information Returns

Sandy, plug this experience into the proposed govt "assessment" described in another thread where the information returns sent to the govt form the backbone of our tax reporting system, and the proposal takes on additional folly.

In this area of tax simplification, customer service, collection process, etc. the govt continues to create more problems than it solves.

Your experience with these CP2000 notices is similar to mine, and I'm sure everyone else's. I virtually NEVER try to call to clean up the mess, you can't get through their phone menus and wait times and even if you do the contact person screws up or does nothing more often than not.

I charge the customer something for writing letters, taxpayer advocate, POAs, etc. unless of course it is my fault. Out of 10 such CP2000 notices, maybe 1 will actually be my fault, 3 might be the clients' fault, and 6 will be the IRS' fault.

[gboykin]

Two separate clients in the same time frame as yours. Client 1 got notice for additional tax of 20K. IRS showed 1099's reported to client not on return of 75,000.00 and 71,500.00. The 1099's were actually for 750.00 and 715.00. Had to call PPS and get the call responder to look into the records, faxed copies of 1099's to her, and she was able to clear it up over the phone.

Client 2 reported all income on Schedule C, however, EBay reported credit card sales of more than the income reported. Turns out the client used their CC for cash advances on their CC merchant account (Why do they do this???).

So a lot of wasted time that I didn't have to waste in the first place, due to IRS' matching system that doesn't work.

[Bees Knees]

Client 1 got notice for additional tax of 20K. IRS showed 1099's reported to client not on return of 75,000.00 and 71,500.00. The 1099's were actually for 750.00 and 715.00.

That happened on my personal return several years ago. My wife got a 1099-MISC from one of her bookkeeping clients for $900.00

IRS keyed it in for $90,000 and sent us a bill for the unpaid tax.

The sad part is many taxpayers without professional help just pay the additional tax IRS claims they owe not knowing that a high percentage of CP-2000s are wrong.

[Jiggers]

That happened on my personal return several years ago. My wife got a 1099-MISC from one of her bookkeeping clients for $900.00

IRS keyed it in for $90,000 and sent us a bill for the unpaid tax.

The sad part is many taxpayers without professional help just pay the additional tax IRS claims they owe not knowing that a high percentage of CP-2000s are wrong.

Probably many of these same taxpayers are the same ones pushing for the IRS to just file the return "...since they have all the information..." so they don't have to pay someone to do it for them...

Fools.

[marlenew]

Last year I also received a notice from the IRS on my personal return...they keyed in $40,000 instead of $4,000 on a 1099 Misc Form and I also had 2 clients with similar experiences. I write the letters in cases like this for my clients at No Charge (not in tax season) as they don't take up much of my time.

[taxea]

No human at IRS sees these. The matching program is only as good as the person/s who wrote it and much was obviously missed. I think it stinks because the client tends to believe the preparer made an error.
I'm tempted to make a complaint to the Office of Professional Responsibility... offprofresp@irs.gov if we can complain about preparers then we should be able to complain about the IRS computer program.
We are losing money and wasting time having to respond. You would think they would have a way to double-check the accuracy before sending out the letters.

[S T]

Update, first of the 2011 CP 2000 IRS response notices to the "dreaded unreviewed CP 2000 notices sent out about 60 days ago ) 1 for the Taxpayer and -0- for the IRS.

If only IRS would have looked at the return filed in their records, the issues were clearly identified and made part of the Electronic Filed Return

What a lot of waste of Government and Taxpayer $$ and a lot of my time, that honestly I can not invoice the client for. My time is Goodwill for the Client Relationship

And some "politcal person" is trying to introduce a bill that IRS prepare the Taxpayers Return!

Hoping for the same results on the other 2 notices pending as of now!

Sandy