Crazy Letters

[Snaggletooth]

IRS is sending out crazy letters that don't make sense. It's not just me - other preparers are noticing the same thing.

I've got a couple where IRS is proposing to change MFJ to MFS. The IRS will not allow this after the return has been filed. What makes IRS think they can do this? Unless the MFJ was incorrect to begin with.

[Rapid Robert]

I would like more details about the letter -- what it says exactly, and what the name of the letter is (e.g. "LTR 12C" or something like that).

You state "other preparers are noticing the same", and that you have "a couple" (of letters). This is the first I've heard of it. Without supporting details/evidence, this is just "some weird thing I read on the internet".

[TaxGuyBill]

I've got a couple where IRS is proposing to change MFJ to MFS.

If a MFS return was also filed (either by one of the spouses or fraudulently), it makes sense the IRS would propose changing from MFJ to MFS.

Have you checked both spouse's transcripts to see if there is any indication of that?

[Snaggletooth]

You state "other preparers are noticing the same", and that you have "a couple" (of letters). This is the first I've heard of it. Without supporting details/evidence, this is just "some weird thing I read on the internet".

RR here are statements from other preparers on another forum:

"So many letters, so early about the least little thing! Clients are furious and afraid."
"Who is writing all these letters from the IRS?"
"It's the computers sending all the letters. No people involved - especially with the more stupid letters."
"I just had a client receive a letter saying that they cannot apply their overpayment to the next year estimates. No reason;"
"I just got a letter today CP14, asking for money that I paid on April 23 with an EFT that cleared the bank. Plus penalty and interest. How do we reason with such craziness. No phone number on this letter."

[New York Enrolled Agent]

RR here are statements from other preparers on another forum:

Unfortunately, I don't think these comments indicate anything other than normal complaining.

You really didn't answer RR's more important question about a letter sent to your taxpayer(s) with a more significant issue I've got a couple where IRS is proposing to change MFJ to MFS. I think that those letter(s) need more clarification from you.

[Snaggletooth]

[QUOTE=New York Enrolled Agent;n312366]

[COLOR=#3300ff]You really didn't answer RR's more important question about a letter sent to your taxpayer(s) with a more significant issue/[QUOTE]

You are correct, I didn't answer because there was no apparent reason to relay to these readers why the letters were written. One letter was for a couple that was recently married in 2023 and this could indicate a remote possibility of marital status inconsistency. Another letter was for a client I have had since 2013 who has been married ever since.

As far as what may be normal complaints, I know you have been in practice for a long time, and you will notice abnormal letters, or hopefully you may not.

Thank you for your response.

[Rapid Robert]

OP states that he has received "several" letters where IRS is proposing a change in filing status from MFJ to MFS. OP repeatedly refuses to elaborate as to exactly what the letters stated, even though OP asks, "What makes IRS think they can do this?". Does OP actually want an answer?

So we are only left to wonder, who is crazy (the word used by the OP) -- the IRS, or the OP.

EDIT: OP is apparently trying to build on the conversation found at this forum, where OP also participates under a different login name:

https://www.atxcommunity.com/topic/3...-from-the-irs/

I regularly read a number of tax pro discussion forums and nowhere else have I seen so many recent anecdotes on this topic. But I do notice that the forum where all these comments are showing is populated primarily by users of ATX software? Hmmm.....

For example, several of the anecdotes are about application of tax refunds to next year's estimated payments. I have to believe that if this was a systemic problem at the IRS, it would be discussed everywhere. By contrast, there is a known issue about trust returns (F1041) getting letters about underpayment of estimated tax when they met the prior year safe harbor, and this has shown up on multiple forums and has been followed up on by NATP, Spidell, etc.

[Snaggletooth]

RR, you obviously have access to this subject on another forum where I post under a required different name (Corduroy Frog). So if you are more interested in the subject matter than attacking me for my phaseology, please read the many accounts.

[Snaggletooth]

There seems to be questions from the readers about specifics, when the truth is there is not enough theme consistency in these letters to post.

But I was notified of one today - first demanding $200+ that he doesn't owe, and there is no explanation. Also the letter is dated May 22nd, but it demands the payment be made by April 1.

[Rapid Robert]

demanding $200+ that he doesn't owe, and there is no explanation. it demands the payment be made by April 1.

This is what I don't get. I don't think I've ever seen an IRS letter to a taxpayer that was shorter than two paragraphs, but maybe it's the new leaner organization we are promised.

Are you saying the letter literally was this, and nothing more?

Dear Taxpayer:

Pay us $200 by April 1.

Signed, IRS

I have to believe there are more English words in the letter that you aren't sharing with us. I still have not seen this trend discussed anywhere else among tax professionals, if that indicates anything.

[Snaggletooth]

Of course there was more to the letter. Get real, RR. Do you really think it necessary to bore readers with the entire text when the impact is all that is necessary.

[Lion]

What are the Letter Numbers?

[Snaggletooth]

What are the Letter Numbers?

Lion, I just picked up the letter today. This one is a "CP14". Furthermore, the amount is exactly $200. Have you ever known them to bill for anything without adding penalty, interest, or both??

[kathyc2]

Lion, I just picked up the letter today. This one is a "CP14". Furthermore, the amount is exactly $200. Have you ever known them to bill for anything without adding penalty, interest, or both??

Sounds like a typo on withholding. It can be difficult to distinguish between 6 and 8 if the print is at all blurry. If in disaster area, it's not late so no penalty or interest.

[Lion]

https://www.irs.gov/individuals/understanding-your-cp14-notice