Fast Track to Collection Division

[Nashville]

This is in response to a thread below, but a different subject so I'll start a new thread.

Historically, when they tormented a client with CP2000 notices, the client had so many days to respond. So long as the client (actually ME) responded, the audit division would have to resolve the issue favorably or unfavorably. After the issue would be resolved, the client would be asked to pay and if not, THEN the matter would be turned over to the collection division.

Nowadays, I'm having several incidents where they have taken their own sweet time resolving an issue, but they are sending over to collections anyway. When you explain to collections that the matter is not resolved, they have their speech ready: "We can't help you with that. You should have taken care of that when you were working it out with the audit division."

I'm sure clients are not always telling me about their problems on a timely basis, but this is happening so much that it cannot always be the clients' fault.

Anyone else noticing moldy-old-draggy unresolved issues are getting a fast-track to the collection division? Or is it just me?

[ATSMAN]

I had one and we responded to the CP2000 within the deadline. Taxpayer receives the usual collection notice. I call collections and advise them that CP2000 was responded within time and I have proof. The following week we receive a letter that collections is on hold for 45 days pending investigation. Then we don't hear anything and I call audit again and the following week we get a no change letter.

My advice to clients has been to not freak out at the first collection letter because it usually is system triggered regardless of your response to CP2000.

[Nashville]

Freak Out?

My advice to clients has been to not freak out at the first collection letter because it usually is system triggered regardless of your response to CP2000.

Atsman thanks for your response, but try to console a client who has just received a levy notice not to "freak out." I am somewhat gratified that I am not the only one having this "fast-track" experience with the IRS.

IRS should be stopped from Collection Activity while audit division is still resolving. Bet that would cause them to allocate more resources to speed up these molasses-slow resolutions.

[ATSMAN]

Atsman thanks for your response, but try to console a client who has just received a levy notice not to "freak out." I am somewhat gratified that I am not the only one having this "fast-track" experience with the IRS.

IRS should be stopped from Collection Activity while audit division is still resolving. Bet that would cause them to allocate more resources to speed up these molasses-slow resolutions.

I agree it is NOT easy to console someone who sees the Levy Notice for the first time. But you got to tell them that is how our tax system works!

[Snaggletooth]

A new Low

This is a new low for the IRS.

Client got a Notice to Levy for something he had already paid. He had his secretary call the return number for Collection Division, and got "We're sorry, we don't have time to talk to you." [CLICK!!]

There is probably a struggle between congress and IRS, or maybe IRS is convinced that shutting down their access will result in more revenue. If they are correct about this, nothing will change. I am supporting any methodology at our disposal to turn the tables and
lessen any recoverable revenue which occurs by virtue of their non-responsiveness. If THAT happens, something WILL change.

This guy is well-connected to two US Congressman. This time the IRS is going to hear from someone.

[rkhan71]

My take

Tax representation is my bread and butter, but I am seriously considering only dealing with the state agencies here is CA. IRS is getting more difficult to work with. I am also looking to invest in another unrelated business too. Too much uncertainty with IRS!

Ray

[ATSMAN]

This is a new low for the IRS.

Client got a Notice to Levy for something he had already paid. He had his secretary call the return number for Collection Division, and got "We're sorry, we don't have time to talk to you." [CLICK!!]

There is probably a struggle between congress and IRS, or maybe IRS is convinced that shutting down their access will result in more revenue. If they are correct about this, nothing will change. I am supporting any methodology at our disposal to turn the tables and
lessen any recoverable revenue which occurs by virtue of their non-responsiveness. If THAT happens, something WILL change.

This guy is well-connected to two US Congressman. This time the IRS is going to hear from someone.

Have you confirmed that by pulling transcripts and/or copies of cancelled checks?

I have a client who received Notice of Levy and they swore up and down that it was paid and they even have cancelled checks. Upon pulling transcripts and other documentation we find that it paid only a portion of the balance due!

[Black Bart]

It's Not Just You.

Default Fast Track to Collection Division...Historically, when they tormented a client with CP2000 notices, the client had so many days to respond. So long as the client (actually ME) responded, the audit division would have to resolve the issue favorably or unfavorably. After the issue would be resolved, the client would be asked to pay and if not, THEN the matter would be turned over to the collection division.

Nowadays, I'm having several incidents where they have taken their own sweet time resolving an issue, but they are sending over to collections anyway. When you explain to collections that the matter is not resolved, they have their speech ready: "We can't help you with that. You should have taken care of that when you were working it out with the audit division."

I'm sure clients are not always telling me about their problems on a timely basis, but this is happening so much that it cannot always be the clients' fault.

Anyone else noticing moldy-old-draggy unresolved issues are getting a fast-track to the collection division? Or is it just me?

I HAVE THIS ONE GOING NOW:
2-26-15 Sent in 944 with a mistake.
5-18-15 Client (upset) gets CP102 from audit division saying "You owe us $3K."
5-27-15 I mail 944X, letter, and all supporting documents saying "We owe you nothing." Told client "Don't worry, we're on it."
6-01-15 Client receives CP504B from Collections saying "We intend to levy by July 2." (Client freaks, of course)
6-03-15 I look up the following re IRS levies info:

"For most taxpayers, the IRS accomplishes these requirements by sending five letters, starting about six weeks after the taxpayer files a return. The five letters are often referred to as the automated collection "notice stream" (notice numbers CP14, CP501, CP503, CP504, and L1058/LT11). If the taxpayer receives the last notice and doesn't pay the balance or make other arrangements to pay the balance, the IRS can levy the taxpayer's income and assets, including garnishing wages and/or self-employment income and seizing funds in bank accounts..."

I wait for reply to 944X and letter - nothing happens.

6-23-15 I call the original notice audit number, rep pulls it and my letter up, says it and levy notice probably crossed in the mail. Sounds reasonable; given mailing dates. I mention the first three Collections "stream of notices" (CP14-501-503) were apparently bypassed 'cause we received the next to last one, CP504, first and it's certified. She's clueless about that, but says no problem, they have put a 90-day hold on it and client should receive a "courtesy letter" saying IRS is working on it.

7-10-15 Client is religious about getting every IRS letter to me, but no "courtesy letter" or anything else appears yet. Can only hope that Collections was indeed advised of the "90-day hold" (I'm not real confident about IRS oral advice), so now I'm waiting for some more paper from Audit or (more likely) the last shoe (L1058/LT11) from Collections to drop in which case the client will have a coronary (I knew I shouldn't have dropped that E&O insurance).