Successfully Responding to IRS Notices
Because of budget cuts, the IRS is more and more using their computers to contact taxpayers and scheduling less personal meetings and telephone calls. How does that affect you? Increasingly, you need to know how to successfully respond to various IRS correspondences.
WHAT YOU WILL LEARN:
This course provides guidelines and tips to help you develop the skills and procedures necessary to respond to IRS correspondence and achieve the outcome that you desire.
The most common types of incoming IRS correspondence are:
CP2501 Notice, a comparison of W2s and 1099s reported to IRS versus what IRS finds on Form 1040, Individual Income Tax Return. Commonly called the “Document Matching Program.”
CP 05…, Notice of Correspondence Audit, which is a letter saying “We are auditing your 201X income tax return and have questions on the following deductions,” such as, contributions, interests paid, auto, legal, entertainment. Most items audited are from Schedule A, Personal Deductions, with a few coming from Schedule C, Business Expenses.
Form 870 and/or Form 4549, Notice of Proposed Audit Changes. The IRS has completed a Correspondence, Office, or Field audit and they are advising you of the increase in tax that you owe. The time line for responding to this notice is either 10 or 30 days. Read the notice carefully for due dates.
CP3219B, 90 Day Letter, Notice of Deficiency. Options: Ignore, sign, or Petition Tax Court. If you sign or ignore, the IRS assumes you owe the money and sends you a notice that you owe tax. If you want to Petition Tax Court you must do so within 90 days.
CP504….., Notice that you owe tax. This is a notice that any tax you owe from a filed tax return, an audit, or the matching program has been assessed and in the IRS opinion, YOU OWE THE MONEY. Your file is now in the COLLECTION DIVISION. What to do?
Field of Study: Taxes
Program Level: Basic (No prerequisites/ No advanced preparation necessary)
Delivery Method: Group-Internet Based
Greta is a former IRS Revenue Agent and Regional Training Coordinator. After a stint as tax manager for Ernst & Young, Greta started her own business and for 34 years her CPA practice has been limited to representing persons who have IRS problems. She is the author of “IRS Examination and Appeals Procedures” on www.CCH.com as well as, pilot tester of on-line continuing education courses for Thomson-Reuters. Greta has authored a number of continuing education courses on IRS pr... View Full Profile