Discussion:How Many Audits Did You Have in 2007?

Here is the introduction from DZCPA from last year: "How many audits did you have in 2007 on Individual tax returns you prepared? No CP 2000 or line item audits. You know... the full blown type, field or correspondence. Just the major stuff accountants dread. Not bragging...just good info to let the preparers know whats REALLY happening with all those RED FLAGS! (You can add your name or fake one if you wish to list by using the edit this page feature on top of screen.")

No CP 2000 or line item audits. You know... the full blown type, field or correspondence. Just the major stuff accountants dread. Not bragging...just good info to let the preparers know whats REALLY happening with all those RED FLAGS! (You can add your name or fake one if you wish to list by using the edit this page feature on top of screen.")

- Tim Doyle, TaxAlmanac Moderator - Talk to me 13:05, 10 January 2008 (CST)

325 returns, zero audit, 3-4 CP 2000's

I always find myself nit-picking about things like making my client provide 'something' that I can use for basis in that stock they sold, or splitting mortgage interest for equity taken out of their home or rental property, or doing at-risk or basis calculation to limit S-Corp and Partnership losses. This is the kinda stuff that slows down the prep for me.

Are you including all of your non-1040s in that 1200?

Also, can anyone list the different type of CP Notices and what they refer to?

seems like I have seen many different CP notices but it would help if there was an index of them all....

any help?

Example:

Notice Number: CP-289 Annual Installment Agreement Statement

_____________ ALSO

I get the difference between field & correspondence or letter audits

(correspondence and letter audits are same, correct?)

What is the difference between CP-2000 and a letter audit

Should I be calling these "examinations" rather than "audits"

Stayed up most of ther night prep of return work, that's why this may come across as incoherent

Thanks for the help all the same

The complete list is in Document 6209, Chapter 9, available @:

www.irs.gov/foia/article/0,,id=150945,00.html.

If IRS uses synonyms other than "examination," such as audit, it is not intended to mean something different. The statute (7602) uses that word, and an "examination" can be one oral question posed to a t/p who declines to answer it. T/p is entitled to a report of examination following such an inquiry. More importantly under 7602, specific written approval is required for a 2nd examination of that tax period and tax.

The essential distinctions between correspondence exams, info returns match, and all the others is minimum scope and depth of exam, and salary and training of the examiner. Correspondence exams, e.g., do not require mandatory consideration of prior/subsequent years or related returns.

CP-2000 by nature restrict itself to the 1099/W-2 items, and the program is designed so that the returns need not be manually reviewed for other issues. Consequently also, approval to reopen a closed CP-2000 case is virtually automatic.

Clients would make their appointments for the next year as they left the office, or 80% would so that even now I believe his appointment book is filled by Thanksgiving.