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No this isn't true. I was a CPA focusing in Tax before transitioning to the tech world. I couldn't count the number of IRS notices I have had to address and re

No this isn't true. I was a CPA focusing in Tax before transitioning to the tech world. I couldn't count the number of IRS notices I have had to address and respond to for my clients over the years. It's a real simple process. You write a letter addressing the IRS notice that was sent to the client explaining the situation along with what you have done to remedy the situation (here is the tax I owe along with penalty and interest and/or here is why you are wrong). That's it. Issue solved and problem resolved. Now if you are suspected of tax fraud, that's a whole other ball game but that doesn't come about from small honest mistakes.

gozur88 10y ago
Yeah, they try to put the fear of God into you at the outset, but the IRS is actually pretty lenient as long as they think you're acting in good faith.
BeetleB 10y ago
>You write a letter addressing the IRS notice that was sent to the client explaining the situation along with what you have done to remedy the situation (here is the tax I owe along with penalty and interest and/or here is why you are wrong). That's it. Issue solved and problem resolved. That's great if you actually made a mistake. What if you didn't? My wife got a notice for her 2013 tax form. They challenged her education credits and were saying we owe taxes + interest + penalty. Respond within 30 days or pay up. I called them up and asked what they wanted for proof. They weren't accepting the university's 1099 form (or whatever it is), because they said all it shows is the amount she was billed, not the amount she paid. Umm.. OK. What if I show bank statements that show payments to the university that match the timeframe and amount? "Sure!" Reasonable people, I thought. So we hunted down 3 year old bank statements and sent it to them. Another letter: They don't accept the statements. "Why?" I asked. "Well, all it shows is you made payments. We need proof these were for education purposes and not, say, parking fines." "But you said last time it'll be OK!" Their response was the formal equivalent of "Whatever, we don't care" So I contacted the university. They said "Just mail them the 1099!" Had to explain that it didn't work. University said it's the first time they've heard it not working. So they dug up the old billing statements that itemized the charges. In reality, it wasn't this short. We had about twice as many back and forths with the IRS as I indicated above. The process took 6 months.

gozur88 10y ago

Yeah, they try to put the fear of God into you at the outset, but the IRS is actually pretty lenient as long as they think you're acting in good faith.

BeetleB 10y ago

>You write a letter addressing the IRS notice that was sent to the client explaining the situation along with what you have done to remedy the situation (here is the tax I owe along with penalty and interest and/or here is why you are wrong). That's it. Issue solved and problem resolved. That's great if you actually made a mistake. What if you didn't? My wife got a notice for her 2013 tax form. They challenged her education credits and were saying we owe taxes + interest + penalty. Respond within 30 days or pay up. I called them up and asked what they wanted for proof. They weren't accepting the university's 1099 form (or whatever it is), because they said all it shows is the amount she was billed, not the amount she paid. Umm.. OK. What if I show bank statements that show payments to the university that match the timeframe and amount? "Sure!" Reasonable people, I thought. So we hunted down 3 year old bank statements and sent it to them. Another letter: They don't accept the statements. "Why?" I asked. "Well, all it shows is you made payments. We need proof these were for education purposes and not, say, parking fines." "But you said last time it'll be OK!" Their response was the formal equivalent of "Whatever, we don't care" So I contacted the university. They said "Just mail them the 1099!" Had to explain that it didn't work. University said it's the first time they've heard it not working. So they dug up the old billing statements that itemized the charges. In reality, it wasn't this short. We had about twice as many back and forths with the IRS as I indicated above. The process took 6 months.