How are we supposed to respond to CP11 and CP12 notices our clients have received where IRS completely disallows the RRC taken on the 2020 tax return?
Either the 2020 overpayment has been reduced by the credit or additional tax is due based on the disallowance of the credit.
In some instances IRS is sending out a long detailed letter (not a CP notice) notifying the client of the appeals right in going to U S Tax Court - after PRIOR responses to
original notices have been sent. Corresponding with IRS lately is difficult - reducing staff on call lines, a year's response to our correspondence from over a year ago.
What I see is IRS claiming credit for reducing their backlog of tax related issues by sending out these disallowance notices on short notice.
IRS also recognizes they have sent out notices in error, but don't detail the types of situations that created the notice.
We were advised during tax time to claim RRC not received as a credit on the tax return - after inquiring the client about the shortage - and now we have to deal with
this mess?
How have any of you responded to the recent round of notices?
Either the 2020 overpayment has been reduced by the credit or additional tax is due based on the disallowance of the credit.
In some instances IRS is sending out a long detailed letter (not a CP notice) notifying the client of the appeals right in going to U S Tax Court - after PRIOR responses to
original notices have been sent. Corresponding with IRS lately is difficult - reducing staff on call lines, a year's response to our correspondence from over a year ago.
What I see is IRS claiming credit for reducing their backlog of tax related issues by sending out these disallowance notices on short notice.
IRS also recognizes they have sent out notices in error, but don't detail the types of situations that created the notice.
We were advised during tax time to claim RRC not received as a credit on the tax return - after inquiring the client about the shortage - and now we have to deal with
this mess?
How have any of you responded to the recent round of notices?
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