December 17, 2020 at 7:21 pm #9659
Rec’d a cp2000 notice in Oct. with deadline Nov (I replied immediate via fax). I wrote I’d included the QCD on the tax form & explained which retirement Account it came from. In my hurry I didn’t include any other proof. I now have copies of cks from the charity as proof. There is another issue they were looking at, which I may owe for – not sure.
After deadline called IRS (waited over hr. on phone) – to make sure they rec’d fax. “Yes”, but they haven’t looked at it yet.
It’s now another month. I hate for any interest to keep rising for a perhaps $1000 error.
I hate calling that number again. Should I try writing, or do I try contacting the company that I used the computer tax program with? How long does it take for them to decide?December 22, 2020 at 3:24 am #11019
I helped my sister put together a CP2000 reply and faxed it for her with all the backup info. Her CP2000 was for $214,400 (yes, you read that right) for taxes and interest and penalties on the sale of her (and her husband’s) home. There actually is no tax liability because the profit was below the primary residence exemption but that number got your attention! Her deadline date is Dec 23rd and the response was faxed 12 days ago. I guess I will have to call and confirm although I did get a confirmation from efax. Nerve wracking.December 22, 2020 at 3:57 am #11027dienerteParticipant
Florida- Your post got my attention! What did she do or not do on her tax return that resulted in the IRS taking the position they did? Maybe sharing general info will help others not come under the same scrutiny of the IRS.December 22, 2020 at 2:49 pm #11189
Thanks for responding, Florida. Be prepared to “wait” on the phone. I was “in line” we will answer your call in 30 minutes – sure after well over an hr. they finally answered that they got the fax – but hadn’t done anything – nor would they be able to answer anything. There ya go. It’s now 2 months. I am tempted to “write (letter)” yes the fax was sent & IRS “said” it was there, but does interest keep going – if I did make an error? I really have no idea.December 22, 2020 at 3:20 pm #11195
My sister got her notice because when I asked her in 2018 when they sold their house, “Did you get a 1099-S?” she said “No.” Well, the answer was actually yes. It was attached to the final ‘official’ copy of her closing statement and she didn’t really pay attention. She’s an artist so what can I say! 🙂 And I live across the country from her so I didn’t have her documents in hand.
So, the 1099-S (which was issued in her name and SSN only) bounced against her 2018 tax return (MFS) and viola!
I talked to the IRS this morning and it was positive. The entire call took 65 minutes and I think I was on hold for 55 minutes (thank goodness for earbuds). The ‘assister’ confirmed the fax was received which was good news. I asked if we should assume it would take 90-120 days to process and he said “possibly.” He also said he wished he had been the one I talked to initially because he probably could have resolved it immediately over the phone. And it would have been resolved because the facts are my sister and her husband each qualify for a $250,000 exemption.
He ragged a bit on other ‘assisters’ who make this specific issue a bigger deal than it is and aren’t as ‘up to speed’ or something like that. He’s right about that because the guy I initially spoke to said to submit, as part of the response, the home sale form that no longer exists.
So, I think everything is going to be fine but it might take a couple of months to get the final resolution. In fact, he said “Everything should be just fine.”December 22, 2020 at 3:46 pm #11206
Florida, you had much more communication than I did with the person that answered the phone, maybe I’ll check in 2021 as the person I spoke to didn’t appear to be able to assist me in any way except to say they’d rec’d. I called the number they listed on the CP2000 – maybe there was a better number.December 22, 2020 at 3:52 pm #11208
The first person I talked to was much more formal and actually gave me incorrect information. The gentleman today, Mr. Sword, was far more chatty and relaxed and, IMHO, competent.
And this was at the CP2000 number. Good luck finding another phone number that connects to a human!December 22, 2020 at 3:59 pm #11211
Florida, Sounds like it depends on who you end up with – I’ll try again – maybe I’ll have better luck the next time. Glad you had good results.December 22, 2020 at 7:24 pm #11275
Well, a truly good result would have been getting this guy on the first call and having everything taken care of over the phone immediately on the first call.December 22, 2020 at 7:43 pm #11279dienerteParticipant
Florida -I figured there was a 1099-S involved as the IRS can only assume a basis of zero when the proper documentation is not sent with or reported on the tax return. Usually very easily resolved in a normal year when one can reach the IRS by telephone to discuss the CP-2000.
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