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A Rewarding First Assignment

July 01, 2016 | Written by: Richard Manies, EA
Professional with arms up in excitment
One of the first cases I was assigned after joining involved a member who had received an IRS CP2000 notice for unreported taxable retirement income. I sent out my first response to the notice in the middle of September 2015. The answer I received back from the IRS Automated Under Reporter (AUR) department achieved part of the desired result, but not all of the results I expected.

The member had originally been sent an incorrect 1099-R. The financial services company did respond by sending an updated 1099-R; however, the new 1099-R was also incorrect. The member continued to contact the financial services company, but they refused to supply a further corrected 1099-R. Furthermore, through the confusion of the original financial institution transfer to the new financial institution, there were recording issues of the transfer at the new company as well.

We sent a second, third, and fourth response to the IRS AUR without success over the next few months. After receiving the fourth response back from the IRS AUR in May of 2016, still without the desired results, I escalated the issue to the Taxpayer Advocate Service. In short, the letter sent to the Taxpayer Advocate Service provided support documents reflecting a like-kind direct transfer of securities from the original to the new financial institution, which did correspond to the original financial institution’s 1099-R issued.

On July 12, 2016, IRS Taxpayer Advocate’s Office called to let me know that they were sending out a letter notifying us that the taxpayer’s original tax return was being accepted as filed, and that there would be no additional taxes due. When I called the member to let him know, he answered the phone and said, “Hi Rick!”
“We won!” I said. He seemed quite surprised, and the rest of the conversation carried the pleasure of letting him know the entire ordeal was over.

It was very a gratifying experience. Not only was I able to assist an 80-year-old widower, but I was also able to help prevent him from paying taxes he did not rightfully owe.

My persistence was rewarded with our last conversation.

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