CP59 experience

[Treasur2]

My client was behind 3 years. 2015 was filed successfully in May 2018. Client received notice that refund would be rolled over (my word) to 2016. The client has now received CP59 regarding 2016. stating "file immediately". I am trying to learn what means immidatly to the IRS. So I can communicate to client and try to motivate her. To send me 2016 data.

The client is not concerned since did not receive 2015 notice until 5/2018. (do ya blame her?)

I have not been able to find any definition of what "immediately" means in reality. I am looking for verifiable information based on someone else's experience of a client not responding to the cp59. I am aware at some point IRS may simply send client substitute for return, etc. or even more letters.

I'm looking for timing information. Not process. Just trying to move the client along. Sound familiar?

[DaveinTexas]

Don’t wait for SFR

I would advise the client not to wait around to find out what “immediately” might mean. You have to understand the IRS is basically it of control. I sort of mean that somewhat sarcastically and somewhat seriously. They live and die by their computer system, which is something like a HAL2000 on steroids.

What I mean is the computers make the call, often with IRS employees at the healm entering transaction codes in the taxoayer’s IMF (Individual Master File) and other times the IRS computer “takes over” and enters codes to expedite the SFR process. All they want is expedition in the collection process, whatever it takes and often by not following proper protocol.

What you don’t want is the SFR to be produced by the IRS because the assessment can not be bankrupted, which could be a valuable tool if the client is in dire straights one day.

Here’s a reference, the only one I’ve found in my limited searching, regarding the CP59 and the eventual SFR (immediately part you might be looking for); from the IRM: “The RD notices (CP 59/516/518) inform the taxpayer the IRS can prepare a substitute return, if a return is not filed. Cases selected with ASFR select codes receive a CP 59 and CP 518 (or 759/618) notice and then are automatically assigned to ASFR.”

What does “automatically” mean? I’m not so sure, but if you wanted to dig deeper, and the client is willing to pay for the research,you could call PPS and request the IMF (they might tell you to file a FOIA request) and/or the TXMODA. This will reveal the transaction codes, where you can decipher here: https://www.irs.gov/pub/irs-utl/6209...on-8a-2012.pdf to determine where in the process your client’s 2016 might be.