IMRS Hot Issues
IRS Seeks Volunteers for the Electronic Tax Administration Advisory Committee and the Taxpayer Advocacy Panel
The purpose of the ETAAC is to provide continued input into the development and implementation of the agency’s strategy for electronic tax administration as well as to provide an organized public forum for the discussion of issues in electronic tax administration. The deadline for submitting applications is April 21, 2014.
The TAP provides a forum for taxpayers to raise concerns about IRS service and offer suggestions for improvement. Applications for the TAP will be accepted through April 11, 2014. Applications are available online at www.improveirs.org.
Campus Acknowledgements Regarding Correspondence (IMRS Issue # 1912)
Practitioners asked if the Campus could acknowledge receipt of their correspondence. When a taxpayer response is received in the Correspondence Examination Unit, the taxpayer’s case is updated to indicate that a response has been received. Letter 3500, Interim Letter to Correspondence from Taxpayer, is systemically generated advising that we received the response, are working the case, and provides an expected date for the reply/determination. If the examination is not completed by that date, a second acknowledgement, Letter 3501, 2nd Interim Letter to Correspondence from Taxpayer, is generated.
When a valid Form 2848, Power of Attorney and Declaration of Representative, is on file for the taxpayer, copies of the acknowledgement letters are sent to the practitioner. If the power of attorney is received with the taxpayer’s reply, the examination file is noted. Once the POA is validated and processed through the Centralized Authorization File, copies of the acknowledgement letters will be systemically generated to the practitioner.
CP04 Notice – Request for Proof of Military Status or Eligibility for Tax Relief Provisions Under Combat Zone/Contingency Operation Criteria (IMRS # 1885)
Why does the IRS request military members verify their deployment dates when the Department of Defense provides this information directly to the IRS? The IRS receives information from the DOD regarding their military personnel in combat zones. However, the information received does not account for everyone entitled to the tax deferments, specifically military personnel who do not receive imminent danger pay and/or are only in a combat zone for less than 30 days. Therefore, when a military person notifies the IRS via their tax return that they are combat zone participants and research shows they are not included in the information provided by DOD for that tax year, we issue the CP04 notice to the taxpayer. Taxpayers/practitioners should promptly respond to such CP04 notices to help us fully serve military personnel in combat zone areas.
The Interactive Tax Assistant tool is a tax law resource that takes you through a series of questions and provides you with responses to tax law questions. You can find tax forms and tax law information yourself when you use the IRS Tax Map. Each Tax Map topic page contains all the information currently available for the topic, including links to related information, forms, publications and instructions. Many types of IRS records are available through routine procedures designed to make access quick and easy. No Freedom of Information Act (FOIA) request is required for these records. To access these resources, go to IRS.gov and search “ITA” for links to ITA and the IRS Tax Map. Search “routine access” for ways to access IRS records.
Paper-filed extensions and e-filed returns (IMRS # 1802)
E-filed returns sometimes post before the paper extension is processed causing the taxpayer to be charged a late filing penalty. Practitioner requests a delay in the issuance of the CP 162, Untimely Filing Penalty – Partnership, until the paper extension is processed.
IRS carefully considered the practitioner’s request to delay issuance of the CP 162. Paper extensions and electronic returns are both processed within the established timeframes; however, paper forms require more processing time than electronic forms. Practitioners are encouraged to file paper extensions six weeks before the electronic return or to submit the extension electronically.