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Client has a substantial assessment but I can't get a straight answer as to whether it is in CNC status or waiting to be assigned to a Revenue Officer

  
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Client has a substantial assessment but I can't get a straight answer as to whether it is in CNC status or waiting to be assigned to a Revenue Officer caj11 06-09-2008
Posted by caj11 on June 9, 2008, 11:12 pm
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>
> Get a transcript.  If it went into CNC status it will be on the transcript.
> Ditto if it was reactivated.

I obtained transcripts for both years...there is nothing on them
indicating it ever went into CNC status for either year. Only that
subsequent years' refunds were intercepted and applied against the
outstanding tax debt for 1993.

> My guess, given your narrative and the years involved, is that it went CNC,
> was subseuqently automatically reactivated because of the income level on a
> later return, is now waiting in the queue, but won't come out to a revenue
> officer because the statute is about to expire.

That may be possible but I've been told by one person on the phone
that the account went into CNC status in July 2005. If that's the
case, it's still a long way from being out of statute.

> BTW, the client's story is bull.  Employees get credit for the withholding
> even if the employer didn't pay it over.  You might as well skip that part
> in discussion with the client, but it would be helpful to look at what
> communication from the IRS prompted the client's contact with you.

It may very well be. On the other hand, what if the employer was
withholding the money from the client and not paying the money to the
IRS? How would the IRS know that to be the case?

Paystubs and W-2s from 1993 and 1994 would be rather helpful now, but
I doubt those are obtainable now. However, back then people were
filing paper returns...if we filed a request for copies of the 1993
and 1994 returns (paying the $39 fee for each one, I know), might the
IRS have copies of the W-2s that were filed with them?

Does anyone have any ideas on how they would approach this one?
Because I'm still a novice here and not afraid to admit it. I want to
have some kind of open dialogue with the IRS here but the people on
the telephone are just useless. I just registered for E-Services, as
the first response suggested (I am a licensed representative).

Thanks for any help you can give!

--
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Posted by Phil Marti on June 9, 2008, 11:31 pm
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>> My guess, given your narrative and the years involved, is that it went
>> CNC,
>> was subseuqently automatically reactivated because of the income level on
>> a
>> later return, is now waiting in the queue, but won't come out to a
>> revenue
>> officer because the statute is about to expire.
>
> That may be possible but I've been told by one person on the phone
> that the account went into CNC status in July 2005. If that's the
> case, it's still a long way from being out of statute.

CNC dates are irrelevant. The dates that matter are the assessment dates.
The collection statute runs for 10 years from the date of assessment. The
transcripts should show the assessment dates, so you can work from that.

--
Phil Marti
Clarksburg, MD

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by caj11 on June 9, 2008, 11:24 pm
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Sorry, forgot to do this
>
> ========================================= MODERATOR'S COMMENT:
> Please tell us which category of Circ 230 preparer you are?

I am an attorney.

> And tell us where you are getting your Rep procedures?

IRS website, IRS publications and CCH.

> And what did you do
> with your POA?

It's signed and I still have a copy of it. I submitted it to the IRS
via facsimile and it is in their system.

> And are you signed up for EServices? (If not, it's free and no longer
> subject to a minimum anything.)  Sorry for all the questions but we do
> want to help you and this info would help us help you.

Just signed up today.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by D. Stussy on June 10, 2008, 3:48 am
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> Okay, so I'm fairly new to the practice of representing people that
> are behind on their federal taxes and have some questions about
> dealing with the IRS. I'm not one to jump on the whole "the IRS is
> evil" bandwagon - more like the "IRS is inconsistent and can't get its
> story straight". I just am at the end of my rope with the robots that
> answer the practitioner's hotline (hotline - yeah right!). Yes, I
> know I have to get used to this sort of thing otherwise I'll never
> make it as a practitioner.
>
> Long story short, I have a client who apparently didn't pay all their
> federal taxes in 1993 and 1994. They claim that their employer
> withheld more than enough taxes but didn't pay them over to the IRS
> like they were supposed (the company went under long ago and closed
> down). They claim their employer was having cash flow problems and
> not turning over the withholdings to the IRS like they should have.
> Whether or not that is true, I don't know. How I'm going to obtain
> the old employer's payroll records is another matter.

Didn't pay or didn't FILE also? That may make a difference....

For the later year, 1994, it was due in 1995. It's been 13 years since the
due date. If filed, was the return processed? The 10 year period on
limitations (current law - previously only 6 years - check for the year of
change - sometime in the 90's) for collection may have passed, making the
whole issue moot. Note that this only applies if he filed.

If your client hasn't filed, then there's been no assessment (including
self-assessment) and the 10 year period for collection hasn't even started.

Have you asked SSA for the W-2 information?

> My real question is, I've called the IRS three times and I've gotten
> three different answers as to what is going on with the client's
> account. ...
>
> Should I contact the IRS Office of Taxpayer Advocate and fill out
> their standard form?

It's not a TA problem (yet).

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

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