CP2000 Dilemma

[Tax Sleuth]

A taxpayer has received a CP2000 showing a proposed balance due of less than $10,000. He wants me to represent him before the IRS, but my understanding is IRS Form 2848 is not being processed because of the government shutdown. I need to be able to check his IRS wage and income transcript in order to learn if the CP2000 is correct. The taxpayer is not sure whether this notice is accurate, but he wants to go on an installment agreement if he does in fact owe what is stated. Assuming the government shutdown continues, what steps should I take in this situation?

[DaveinTexas]

You might want to ask your client to use the Transcript tool on the IRS’s site. I had a client last week (during the shutdown) obtain his account transcripts (not Wage and Income though) through the site. He said they pulled right up for him.

It’s worth a shot. Short of that, I have to believe the IRS will have leniency, although the computers will probably still spit out the follow up notices and attempt to assess the tax.

At least with no response on your end you would still have other remedies and reasonable cause; Audit Recon due to Government Shutdown; that is pretty compelling. Tell your client to do all the research he can (request wage, 1099Bs, or 1099Rs from employers/brokerage houses) and be patient through the process.

I mailed, using Ceritifed Mail, an Audit Recon during the last long shutdown (2012/13-ish) and the IRS said they never received anything. Frustrating. Hang in there.

[Jiggers]

Your client doesn't have a copy of the return in question? That would help in the situation now, you could at least match up the numbers that are on the return, and read the CP2000 for the differences. Otherwise, do what Dave suggests.