Discussion:CP2000 Notice
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| 17 May 2007 | |
| I have a client who received a CP2000 notice due to some dividends from a 1099 he forgot to give me. I sent a letter to the IRS saying that we agreed, but pointing out that he will now be entitled to additional investment interest that was previously just being carried forward. I included revised 4952s (regular and AMT), Schedule A, and 6251 with my letter. My calculations show this his tax should go up by $500. The IRS says that his tax goes up by about $4,000, but I can't figure out how they came up with that figure. Their tax doesn't make sense even if I don't take into account the investment interest. I've sent a couple of letters to no avail. I tried calling, but gave up after an hour on hold. From previous experience, I know the practitioner hotline won't help with CP2000 notices.
Any ideas on how I can actually talk to someone at the IRS without spending hours on hold? | |
Bushmaster (talk|edits) said: | 17 May 2007 |
| I got thru yesterday in about 5 minutes. | |
Death&Taxes (talk|edits) said: | 17 May 2007 |
| Last year I had a similar case and found that Practititioner's Hotline was able to route me to a phone number that someone in the Atlanta Center actually answered. That person gave me a different fax number than the one on the notice and we were able to clear the matter up within six weeks.
Are your sure there is not a 1099B involved? Such a tax change surely had to come from a stock sale, not interest and dividends. btw, I have never been able to get a fax through on the number listed on notices from Chamblee [Atlanta] GA, and when I tried to send something via Federal Express to the Chamblee address, was told that the zipcode was invalid for Chamblee. | |
| 17 May 2007 | |
| Thanks. I'll trying calling again this afternoon when I have some time and will try the Practitioner hotline if that doesn't work. It's definitely a 1099-div (about $22k in dividends). It was the special Microsoft dividend a couple of years ago and so it wasn't something that I noticed not having because I'd never seen activity in the account before. | |
Death&Taxes (talk|edits) said: | 17 May 2007 |
| Maybe they are not realizing it qualifies for the 15% rate and are taxing it at the bracket of the taxpayer....betcha that is it. | |
| 17 May 2007 | |
| I thought of that. The figures don't work out for that either. I've tried all sorts of calculations to figure out how they came up with the tax, but can't get to their number. | |
| 17 May 2007 | |
| Why not just file Form 1040X, amend the return to include the additional information and end around the CP2000 to begin with? I know I have had success in just preparing the amended return when they are being unreasonable. | |
| 17 May 2007 | |
| Have you tried e-services account resolution? It's a real time saver as you just do it through e-mail and I've always gotten my response back within 24 hours, they say it can take up to 5 days I think, but I've always gotten my response back within 24 hours. | |
| 17 May 2007 | |
| I agree with AKCCPA, File an amended return and save your time on the phone. You might need to file a state amended return also. | |
| 18 May 2007 | |
| Forget what the notice says. File the 1040X and attached a copy of the notice to it. Problem solved. | |
| May 19, 2007 | |
| I agree. You should file an amended return and attach a copy of the CP2000 to the 1040X and include any forms and/or schedules that have changed. | |
| 19 May 2007 | |
| I've found that contacting my area's Stakeholder Liaison is amazing. Everytime I've called or emailed, they are so nice, answer the phone promptly and actually are human beings and act like it. I don't do this often enough and still deal with the 'big machine' more than I believe I have to. You might try the office that covers your area and see if that will work. I do agree that 1040X is easiest and best in this case. | |
| 19 May 2007 | |
| If you file a Form 1040X, it will likely go to the Tax Accounts area rather than the compliance group that issued the CP-2000. If so, they will route it to the CP-2000 unit but that will take several weeks to months before they get it.
Try calling the telephone number shown on the CP-2000 notice late at night, 8 PM - 11 PM. They often have a night shift and it will be easier to get through to them. You really need to talk to the person working the case because they can tell you why they are coming up with the $4,000 figure, other areas won't have access to the CP-2000 computers/account so won't be able to tell you why. You could also try faxing the info to the CP-2000 group if they have a fax number listed on the CP-2000. | |
