Irs Notice Of Deficiency

[John of PA]

I have a client who received a notice of deficiency (IRS does not want to exempt her from the 10% IRA w/d penalty, even though she reported, on the 5329, that she was a first time homeowner; Broker erroneously coded as normal distribution). Client did not receive any prior notices or correspondence, only this one, which says any appeal must be in tax court. Has anyone ran into this, where the first contact from IRS is a Notice of Deficiency?

[Gretel]

Yes

Not me personally but learned about this at Gear Up. Seems to be the new way of doing things. Again (see geekgirldanny) VERY UPSETTING.

[Donanita]

Yes

I had a client retire due to disability and we filed a 5329 with a code 3 as the 1099R was coded 1.Contacted the company at first to have the 1099R corrected and was told they don't do code 3 and for client to contact their tax preparer.So we filed return with 1099R coded 1 and Form 5329 to show disability.Client was also drawing social security disability.Then comes the" LETTER" from the IRS with a tax plus interest & penalities because client was under 591/2.Took a year to get to straighten out.

[BOB W]

My experience........

...... with this type of letter, and I have had a few, is to call the number on the notice and do what they want. I have had no futher problems doing this. I did ask them to issue a letter confirming the notice is now cleared up, and they did.

In some cases it was the only correspondence received. But in all cases it got resolved quickly by the IRS.

[John of PA]

Thank You All

Thanks all of you. I'am going to get my signed POA ready, get a tall cup of Starbucks coffee in me, then call the number on the notice and hope for the best. If IRS is going to play hard ball, then hard ball it is.

[BOB W]

Warning!!!!

I have heard several horror stories on this board and, last year, on the other board. Many believed that "MY" IRS and "THEIR" IRS are not the same people. Let me say that is it better to have the IRS help you, then to tell the IRS what you want to do. This approach has worked well for me.

As this relationship is being developed I gently guide them, when necessary, to accomplish my goal. I find most IRS employees like to be heros and I let them be one.
Remember, nothing matters but getting what they need from you. Don't fight them, join them.

Good Luck

[abby]

Practioners Hotline

I'am going to get my signed POA ready, get a tall cup of Starbucks coffee in me, then call the number on the notice and hope for the best.

John, by all means, get the tall cuppa, but once you have the POA, you're likely to have a better and shorter experience calling the Practioners Hotline.

I'm not at work, so I don't have it at hand, but I know it's listed on the IRS website in the Tax Professional's section.

[Acownt4it]

hotline #

The number for Practitioner Priority Service is 1-866-860-4259.
I have found the people who answer very helpful.
Good Luck.

[John of PA]

Great Advice

Great Advice Bob W, I will be a total Gentleman, Scholar and Diplomat, like Jainen is. I like the concept "let them help you". Also thanks Abby and Acount4it, sounds like a plan. Pratitioner Hotline instead (the hold time will probably be shorter also). Never tried the tall cuppa, but it sounds good, and while I'am at it, I'll dip a biscotti in it. I'll try to report back how it goes, but first I have to get the signed POA.

[DTS]

Irs

John,

I always follow Bob's method with the dozen or so letters my clients have gotten and have always had a favorable outcome. My experience has been they will bend over backwards to help you fix whatever problem you are calling about.

Maybe, there have been other outcomes from other posters, but I have always found them to be respectful of me and visa versa.

Dennis

[geekgirldany]

I have found most at the practioner hotline to be very good. But the past two years I seem have gotten a couple that would not help and would get frustrated with me. What I started doing is just saying thank you... hanging up and calling back to get someone else. I take a gentle approach with them. There is no need in getting angry with them it won't help matters.

[John of PA]

Thanks Again

Thanks Again, catching the bees with Honey makes total sense. Really it's like calling any customer service dept. Thanks for all you help here.

[Snaggletooth]

Honey and pass the Sugar

Wonder what Jainen's experience is in dealing with the IRS?

For all we know, he might even WORK for them....

Snag