The Difficult Problems If it was easy anyone

The Difficult Problems If it was easy anyone could do it, but we get: Old rotten stinky cases that have been hanging around for years. What the heck do we do to straighten out the messes, reach into your tool box and use some of these often times forgotten fixes. 1 09: CSIRS Page 207

Audit Reconsideration Page 207 4. 13. 1. 2 (12 -16 -2015) Definition of an Audit Reconsideration An audit reconsideration is the process the IRS uses to reevaluate the results of a prior audit where additional tax was assessed and remains unpaid, or a tax credit was reversed. If the taxpayer disagrees with the original determination he/she must provide new information for the audited issue(s) that was not previously considered during the original examination. An excellent process for: Exams that closed and were assessed without the taxpayer providing all available information IRS “prepared” the assessment by SFR 2 09: CSIRS

Audit Reconsideration 4. 13. 1. 4 (12 -16 -2015) Criteria for Reconsideration In order to request an audit reconsideration: 1. The taxpayer must have filed a tax return. 2. The assessment remains unpaid or the Service has reversed tax credits that the taxpayer is disputing. 3. The taxpayer must identify which adjustments he/she is disputing. 4. The taxpayer must provide new additional information for the audited issue(s) not considered during the original examination. 5. There was an IRS computational or processing error in assessing the tax. 3 09: CSIRS 146

Audit Reconsideration Page 207 -208 The steps of an audit reconsideration: Step 1 – Identify errors and locate necessary documents to verify corrections. Step 2 – Send copies of verification information. It is helpful to attach Form 12661 4 09: CSIRS

Audit Reconsideration 2010 5 09: CSIRS Page 208

Solving Some Other Problems § Congressional Correspondence – Pg. 212 § Amended Returns – Pg. 212 § Offer in Compromise – Doubt as to Liability – Another way of saying Audit Reconsideration – Pg. 212 § TIGTA – Listen to what they have to say, IRS has a tendency to follow their lead - Pg. 214 treasury. gov/tigta/ 6 09: CSIRS 212

Example of a CSIRS Case Page 216 -218 On occasion the IRS even with the numerous safeguards available fails to properly follow the rules as they have been instructed to abide with the case that follows on Pages 125 – 128 demonstrates that principle and how the case may be pursued. IRS has been particularly unable to abide by the rules of IRC 6201 – The solution is the Portillo case – Once you get someone to listen 7 09: CSIRS

Portillo v. Commissioner Page 216 -218 Problem – IRS puts absolute faith in a 1099 issued to the taxpayer – a common problem in responding to a CP 2000 – The reason why congress inserted IRC 6201 8 09: CSIRS