I can’t explain this. It makes no sense and is the definition of abject stupidity. But for some reason, the Internal Revenue Service has increased the amount of useless and infantile notices being sent to our clients for no reason at all.
In the past month, we’ve been forced to respond to the following types of notices.
1 – (IRS) We’ve received a return, such as a 941, a Corporate, or a Personal return, but can’t find it. Please forward another copy.
Answer: If they know they received a return, how did they lose it?
2 – (IRS) We received your return but it was missing this particular page. Please forward a copy of that page.
Answer: Our tax program automatically prints out every page that’s necessary. How could anything possibly be missing?
3 – (IRS) We received your extension request for a C Corp return late. Please pay these penalties.
Answer: The extension request came back stamped as received on April 1st. That was two full weeks before it was actually due. How could it possibly be late?
4 – (IRS) We received your S Corp Return for 2019, but we have no verification of the entity being an S Corp. Please refile the return as a C Corp.
Answer: We’ve been filing this copmpany as an S Corp since 2013 and never had a problem before. How could the Service think that magically the S Status was revoked?
This is just four of the frivolous notices we’ve been forced to respond to in the past few weeks. Believe me. There’s more.
If you’ve received one of these exercises in ridiculousness, please don’t think that you did anything wrong. Please don’t think that we did anything wrong. Don’t look for logic. Don’t try to rationalize it.
Don’t make the mistake of saying something like, “They wouldn’t be taking the time to send me a notice if there wasn’t something actually wrong.”
Why? Because it didn’t take anyone’s time to send out that notice. The IRS system is completely automated. These notices are nothing more than examples of the Service’s newly upgraded Artificial Intelligence Systems, screwing up as usual.
That’s right. You heard it here first. This phenomenon is nothing more than an example of the additional $80B in IRS funding the new administration pushed through, making all of us a little more crazy and wasting our valuable time.
That’s it. That’s all. Period. Please don’t read anything more into this phenomenon. It’s nothing more than computer stupidity.
Please also realize that we must respond. Don’t throw these letters into the circular file. If we don’t respond in a timely manner, then the additional taxes, interest, and penalties that many of the notices propose will be enforced.
Let me leave you with this.
The problem now becomes how do you deal with anything this ridiculous?
Don’t call the 800 number. The IRS Agents who answer are the least experienced agents at the Service. They go through a 2 week crash course, are assigned an IRS badge number, and are put on the phones. The only thing these people can tell us is what the computer tells them to say.
And let’s remember that it was the computer that created this SNAFU in the first place.
We’ll need to send in a letter and attach any backup materials that may be necessary to refute the IRS claim. Most of these notices are thirty day letters. If the Service doesn’t receive a response inside that time period, the machine will automatically assume that it was correct in the first place and hit you with the additional tax, interest, and penalty that was proposed.
So we send in a letter with the backup and wait for a response. The responding letter from the Service will take a minimum of 90 days to be received.
If the Service responds in the affirmative agreeing with us, then we’re home free. No harm. No foul. Over and fahgetabadit. If they don’t agree, then our next step will be to refer the matter to the Taxpayer Advocate’s Office.
Many don’t know that the IRS has a service that works on behalf of taxpayers, to solve issues like these on a complimentary basis. They are an official “arm” of the Service, have internal access to IRS Systems, and are very good at handling issues.
In the old days, the only thing we could do was write a letter. I can remember times when I had to send the same basic letter into the IRS seven or eight times before anyone with a brain opened the mail that day, and actually dealt with the issue. Now, the Taxpayer Advocates normally get even difficult issues handled on the first try.
If you get one of these notices in the mail, don’t freak out. Send it to us, and we’ll handle it. There will be no additional charge, because these services are included in our monthly packages along with your taxplanning.
We’re all going to get through this. Let’s get through it together.
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Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
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