Turnaround Time on Amended Returns?

[Black Bart]

Follow up on this: Client called today to say he received a "no change" letter in response to my Audit Reconsideration request, which closes the matter. But it should never have gone this far, and I'll bet that over half the people who get a Notice of Deficiency just go ahead and pay it.

John: Congratulations; and...how do you request this "Audit Reconsideration"? I've never done that (at least if I did do it I didn't know I was doing it). Is there an IRS form, or are you just writing a note/letter explaining everything and/or asking them to fix so-and-so because of XXX reasons?

At first I was going to say your stuff did pretty good; only taking about two months. But that was since you originally posted here; re-reading it now I see your first contact with IRS was in November of last year, so it took more like eight months which is about par according to others here. Snag appears to be having a tough time with them lately too.

I had such astoundingly great results on my last outing with the Taxpayer Advocate (couldn't ask for better service: see my prior post above) and others here talk of terrible results or hold time with them, that I just wonder if the TA help varies greatly from state to state. Have you ever tried them in your state and, if so, how did it go?

[JohnH]

Bart: I've used this approach a number of times in the past, and with good results. There isn't a special form. I just put a heading on the lettter just below the adddesses info and just above the RE: section. It says "AUDIT RECONSIDERATION REQUESTED" in bold, underlined letters. I use it whenever IRS has failed to agree to a response from a CP2000 (or when a taxpayer has let a CP2000 run too far without responding).

I try to keep it simple, not quoting regs or cites except in very brief references. I don't usually bother with a POA, and I write the letter from the client's perspective. In all these situations it isn't possible to refer back to the 3rd party authorization on the original return because the time limit has already expired on it. I'm basically functioning as a scribe for the client.

In this case, I attached a copy of the original Schedule A with the "Sales Tax" box clearly checked on line 5. I also attached a copy of the Form 1040 instructions page which says State Tax Refund isn't taxable when one uses the Sales Tax Deduction for that year. Theis audit reconsideration request basically regurgitated the info we originallly sent, with an extra paragraph updating the urgency due to the NOD. As I said, it was a slam dunk from the start. I think nobody bothered to read the response we sent back in Nov.

Incidentally, this is probably fodder for those who chastize me about e-flinging. The problem most likely originated when a data entry clerk failed to check the Line 5 box when the original return was processed. But no, I won't be joining the e-flinging bandwagon over this. Spending some time correcting one or two of these out of the hundreds of returns I've filed is a smalll price to pay if I can continue paper filing.

I haven't used the TA. But I've made a number of calls to the regular number and then conferenced the client in. This avoids the hassle of getting a POA in place. Most clients have come away from these intereactions with a new respect for the people at IRS. They usually comment on how pleasant & helpful the IRS rep was, and they apprciate the fact that most of the time the person on the other end of the line is just someone trying to get their job done under difficult circumsances. I think that is still true, but they (and we) are becoming victims of a bureacracy that has lost its way due to politics and bad management at the top.

[JohnH]

Incidentally, I just discovered today that IRS has a smalll publication specifically addressing Audit Reconsideration. It was published in 2012.

http://www.irs.gov/pub/irs-pdf/p3598.pdf

It is interesting to note there seems to be an upsurge in online discussions about the audit reconsideration process. I suspect it's because more tax pros are using it in the wake of recent IRS behavior if our observations are correct. I noticed that CCH offered a seminar this week on it ($250), so they must see some special interest in the subject out there. But no need to spent $250 - my charge for this info is only half that amount (small, unmarked bills only please).

[JON]

Time

if it was "two months" I think that was a long time ago. A year on one of mine. You usually get a letter within 60 days that says they have received it, but have not processed it. One of mine filed last June generated a couple of letters that finally said it had been forwarded for review. I received a call the first week in June and was really impressed with the reviewer who wanted some more information. E'd what was requested and still have not heard. There is no doubt they are swamped.

[taxea]

I just read on another forum that it can be up to 20 weeks.