thetaxdon wrote:

- quote -

Many, many years ago two of my employer's clients provided
us with IRS communications in which the IRS had
over-refunded taxes paid by their respective children. To
each I offered to convince the IRS to take the money that
was owed; I pointed out that my firm was then billing out my
time at about $25 per hour and that a higher level person
would also spend time reviewing my work.

Both clients said thanks but no thanks.

Realistically these two possibilities exist. First, despite
saying "case closed," the IRS could come after the money
again. Second, when the IRS and you concluded that you had
made a mistake on the original return, you both could have
been wrong.

Let's here it for "convoluted" requests for penalty abatements.

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thetaxdon wrote:

- quote -

Huh? You say you made the error, but IRS finally concluded
that (your) originally prepared return was correct after
all? Maybe your return was wrong to begin with, you reckon?

the correct answer is to revisit the return, determine the
accuracy of the income figures and then advise client as to
whether IRS is correct or not. It's then up to the client
to decide whether to tell the IRS that their subsequent
findings were not correct and that the subsequently paid tax
was correct after all.

will wonders never cease?

ChEAr$,
Harlan Lunsford, EA n LA
Wed Aug 9 2006

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Any comments on a recent CP-2000 would be appreciated.

Client receives CP-2000 wanting $5,700 in tax and $1,000
penalty for under reported income. Upon review, it's
determined they owe the tax do to an error of mine. They
send a check for the tax plus interest, and a letter
requesting abatement of the penalty. The abatement letter
is detailed and a little convoluted. Client next receives a
CP-2005 titled "Closing Notice", saying, "...we were able to
clear up the differences between your records and your
payers' records. If you sent us a payment based on our
proposed changes, we will refund it to you..." A refund was
forthcoming. For the sake of argument, assume I was
correct in the final assessment of "they owe the tax". IRS
says Case closed. What next?

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >