My elderly relatives received an IRS form CP2000 because they neglected to report a fair amount of income. The IRS correctly shows the missing numbers.
1) The IRS appears to have used the QDI amount from their return to compute tax due, rather than the correct number (which is on the CP2000). Using the correct number results in significantly lower taxes owed. We will point this out in the reply. Should they pay the IRS the full amount the IRS proposes, and ask for a refund, or should they pay the amount we believe is due? If the later, presumably we’d adjust interest.
2) Either the relatives lost the Response form or the IRS didn’t send it. Would a letter including names, address, tax year, SS numbers, AUR number and a description of the issues suffice?
3) The husband passed away and I’m executor of his estate. Should I note that he’s deceased and sign as executor?
4) Due to a variety of issues, the wife probably can’t sign the form. I have a general power of attorney. I’m hoping that if I sign as POA, the IRS will either accept my signature or write back, rather than rejecting the filing or charging more. Does this seem acceptable?
I’ve tried calling the IRS at the number on the form, but due to staffing issues they are unable to take calls.