IRS notice CP2057

[Jiggers]

Confidential Information

Currently the bank asks them for their tax return. They call me, I fax a tax return to the bank,

Aren't we supposed to get something in writing before we FAX a return to the bank, or any where else, for that matter?

I require them to sign my release before I FAX, give, send, or talk to anyone other than my client about their tax return.

[JoshinNC]

Excuse me

Aren't we supposed to get something in writing before we FAX a return to the bank, or any where else, for that matter?

I require them to sign my release before I FAX, give, send, or talk to anyone other than my client about their tax return.

for excluding that step from the protocol.

[erchess]

Josh and Jiggers

If you put the right language in your privacy policy could you not Fax Copies or Discuss the Return after getting permission in an email or by phone? You would obviously need a written log of this kind of activity but could this not work? Perhaps it would also help if your Engagement Letter covered this and gave them the opportunity to opt to only have those things happen by signature.

[Jiggers]

Disclosure Authorization

If you put the right language in your privacy policy could you not Fax Copies or Discuss the Return after getting permission in an email or by phone? You would obviously need a written log of this kind of activity but could this not work? Perhaps it would also help if your Engagement Letter covered this and gave them the opportunity to opt to only have those things happen by signature.

There are new regulations that go into effect in 2009 that specifically state that this was must by in writing, information to whom the information is going, in a certain type size, specific wording and expiration date.

I don't have the specific regulation in front of me as I am not at the office this weekend. Maybe someone can attach it to this string.

Even though they go into effect in 2009, I have already implemented them in my office. And I think that we have had to have written authorization in the past, due to the Gramm-Leach-Bliley Act of 2000.

[Jiggers]

Disclosure

See IRS Pub 4639 for more details.

[Davc]

"And, with this type of set up, you eliminate the possibility of Congress benefiting certain types of behavior and punishing others through the tax code."



Wanna bet? A quick look at the NC DOR shows different goods and services have different sales tax rates. Seems to be "benefiting certain types of behavior and punishing others through the tax code" to me.

[joanmcq]

These notices would scare the do-it-yourself crowd. These folks would be very much afraid of such a letter because they don't have enough confidence that they did their taxes right. And who are they going to call? Box?? Nope, they will call people. People like HRB and us.

Seems like 90% of the time when I am asked to investigate someone's TurboTax return, I find money left on the table by the taxpayer. I think IRS is very much in support of TurboTax, as it is both trouble-free and revenue-friendly for them. If they think about it long enough to reason, they would make sure none of the TurboTax self-preparers got one of these notices.

From your existing customers, look at these things as a PITA. From non-customers, look at them as an opportunity.

Hey, I see tons of DIY returns in my job, and trust me, most of them are not leaving money on the table. Zero income Sch Cs, EBE up the wazzoo, mistaking FMV of an IRA for basis on the 8606, deducting mortgage interest and/or RE taxes on the A, the E the C, the 8829 and anywhere else they can think of putting it, the teacher's deduction taken by everyone, huge estimated mileage on Cs, Es, & 2106s......I could go on and on.

[Black Bart]

DIY returns

...I see tons of DIY returns in my job, and...most of them are not leaving money on the table...

What sort of job is it that you do with the DIY returns? I was thinking you had mentioned in older posts that your company dealt with amended/audited returns (or something like that) -- what I'm wondering is if the ones you see are representative or are you seeing them because they overdid the deductions?

I only see a few TurboTax/DIY returns each year, but they're like Snag's cases -- usually a refund is due.

[Lion]

They owe more...

I see the returns Joan sees. People that did their own returns in the past until they thought it was too complicated for them now, they commute to another state, they have something for the first time, etc. Well, when I do their returns "right," or at least as correctly as I can, they end up paying more. Like Joan's, they were deducting mortgage interest and property tax more than once, deducting SE health insurance on Schedule C, and don't get me started on how they mangle depreciation. I can spend as much time explaining why they don't get as much back now as I do actually preparing their returns.