CP14 Notices

[Corduroy Frog]

My clients have received an unusual number of IRS notices attempting to assess penalties for underestimated tax payments. Some of these are for returns where a 2210 was filed absolving the penalty for covering the previous years' liability.

Any of you having the same problem??

[erchess]

It sounds like typical

abuse of taxpayer through IRS Incompetence that happens to too many people. The solution is fairly straightforward and I am amazed that no one has thought of it before. Simply pass a law that if at the end of the day the IRS turns out to have asked for so much as a penny too much, the taxpayer not only owes nothing, he owes no tax for the next ten years or the IRS has to pay him the amount it asked for or something, anything, to make the transaction cost them something. In the current environment they know that they send out a fair number of erroneous notices and they have no reason to care.

[oceanlovin'ea]

Notices

Yes, I have had a few clients receive these notices. This is the first time I have ever seen these notices come out like this.

IRS just said it was an updating of their computer system that it now generates these notices if the system thinks it is due. Their suggestion was just to reply to the notice if it is not correct.

Just more work for us.

Linda F

[DaveO]

We have had more than usual

And also from the state looking for ES tax penalties. I have forced the software to print a 2210 and mailed it in. That has solved all of them so far. I wish the IRS would leave those who are trying to be in complience alone and go after those who are really abusing the system.

I met with an individual recently that is self employed and hasn't filed in 20 years. I pulled income transcripts from E-services for the last 4 years. He had 1099 income of about $60k per year. He has had no notices or contact from the service at all.

[FEDUKE404]

Types of "errors"

Yes, I have had a few clients receive these notices. This is the first time I have ever seen these notices come out like this.

Linda F

Linda,

I'm somewhat curious as to the errors of these notices.

One would think the IRS could pick up on the dollar threshold issues, or 90% paid-in issues, or exception #1 (prior year liability) issues automatically.

Is it just some more IRS incompetence, or possibly some fertile underpayment issues such as late/skipped estimated payments or similar?

Thanks!

FE

[Kram BergGold]

Reporting withholding as paid

I had to paper file a return due to a Form that is not eligible for Efile. To save my client $800 I reported the withholding as actually paid. He only worked through May. The IRS did not process the Form 2210 as I prpepared it. I called the Hotline using check the box. The IRS rep made it sound like this happens all the time and that my client would be notified in 7-10 days that they owe zero. I think if you paper file a return with a Form 2210 with a wrinkle you are asking for a letter.