CP14 and Amended returns

[DaveO]

In the last week I have had 2 clients bring in CP14 (balance due) notices for 2006 returns. In both cases an amended return was filed after the original was e-filed and before April 15. In one case a K-1 was received late and in the other a 1099 was left off. In both cases the amended return reduced the tax owed on the original. Both taxpayers submitted the about due as shown on the 1040X.

Both CP14 notices showed the payment received but didn't acknowledge reseipt of the 1040X. Both state amended returns were processed without problems. I called the IRS service center and was told no 1040X had been received. I told them, "Sure it has, the check you cashed was stapled to it". I was told to resubmit both 1040X returns.

Both notices were from Holtsville. The returns were submitted to Austin. Anyone else seen this problem?

[bertrans]

Cp 14

Yes. It's called IRS reorganisation. Remember when all international returns had to go to Philadelphia? Not any more: now it's Austin - sorta, kinda, but not exactly; although all reconsiderations of Substitutes for Returns MUST go to Austin, Austin's instructions are to send ALL international such returns to - you guessed it - Philadelphia. Doesn't matter where you live, as regards which IRS center processes or audits your returns. This is known, technically, as progress. And it's just starting. Buckle up.

[Kram BergGold]

My guess

The efile return was processed immediately. As soon as the deadline passed the CP-14s started going out. Say the amended returns were received by IRS on April 10. It takes 30-60 days to process 1040Xs. So the bill makes perfect sense. My guess is by mid to late June the IRS will connect the dots and all will be worked out. I would call IRS and get a hold put on the account in the meantime.

[bertrans]

Cp 14

An elegant solution. Still, though, situation shows the glories of restructuring, doesn't it?

PS: The solution necessarily presupposes an IRS customer service rep who knows what to do and how to do it. This, in turn, is known technically, as a leap of faith and is, as such, protected by the First Amendment. That's why I'm an anti-theist.