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IRS Collection sidesteps procedure

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    IRS Collection sidesteps procedure

    I'm wondering if others have the same problem.

    Typically, the IRS correspondence audit division sends out notices (such as CP2000) to taxpayers that they owe money. If there is no response, or even if the taxpayer DOES respond, a certain length of time must pass before the assessment becomes final.

    The collection division waits until the assessment becomes final, and then begins writing ugly letters, including threats to levy and seize property.

    I had a client with an assessment dated January 14, and we responded with a calculation of a lower amount and sent a check with our response. We know the IRS cashed the check. But on February 4th, we receive a notice of intent to levy, reflecting no decision from the correspondence audit division, but acknowledging that they did receive a check for the lower amount. Acknowledgement of the check is proof that the IRS received our response.

    The collection division gave us another 30 days which they felt was generous. Typically in years past, the action does not pass to the collection division until a correspondence audit situation is resolved.

    What is going on here? Are there other preparers that have the same problem?
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