IMRS Monthly Overview - August 2011
NEW IMRS ISSUES
Policy, Practice, Procedures
IMRS Issue 11-0001502 - Access to Practitioner Priority Service line for Canadian tax professionals
Issue: A practitioner, a CPA working for a Canadian firm located in Canada, raised the concern that the Practitioner Priority Service line is a toll-free number that can't be accessed from outside the United States. This firm has many clients who are U.S. citizens and residents. Although they realize that the use of e-Services might be a viable alternative, the CPAs in his firm would like to have the same services available to them that are available to their counterparts in the U.S. Is it possible to secure a long-distance telephone number for the PPS?
IMRS 11-0001506 – Problem with Form 2848, Line 5
Issue: Line 5 of Form 2848, Power of Attorney and Declaration of Representative, will grant a representative authority to sign a tax return when permission is obtained from a district director. Since the IRS no longer has district directors, guidance is sought on how to meet the requirements of Line 5.
RECENTLY CLOSED ISSUES
IMRS Issue 11-0001484 – Erroneous Making Work Pay Credit refunds
Issue: Schedule C and F filers incorrectly received math error notices CP11 or CP11M. The IRS changed the original returns and issued erroneous refunds for the Making Work Pay Credit. The specific situations reported involved taxpayers who filed Schedule C or F, reported a loss, and used the optional method of calculating self-employment tax.
Response: The earned income for the Making Work Pay Credit is manually computed by tax examiners when a loss is present on Schedule C or F. Existing procedures require tax examiners to determine the Making Work Pay Credit by using the Earned Income Worksheet (2010 Schedule M Instructions, Line 1a, page M-2) to compute the amount for line 1a and enter the manually computed Making Work Pay Credit amount in the field designated for line 63. However, the employees did not follow the appropriate procedures in the cases cited, resulting in the erroneous math error notices. We have re-emphasized the proper procedures and apologize for the inconvenience caused to the taxpayers.
IMRS Issue 11-0001474 – CP11 Notice does not reflect timely payments
Issue: A tax practitioner complained that clients are receiving CP11 balance due notices that do not reflect payments made timely on a timely filed return.
Response: The processing of balance due returns is normally delayed to allow time for payments to post before notices are issued. However, a CP11 notice is generated automatically when a math error is identified on the return. This notice reflects the changes to the return and provides the adjusted balance due. Because it is issued as soon as the math error is identified, it does not always reflect payments sent with the return. We apologize for the confusion.
Policy, Practice & Procedures
IMRS Issue 10-0001234 – Improper call routing of Schedule H questions
Issue: A practitioner called the Practitioner Priority Service regarding a household employee question. Although she asked for the business tax law section, six employees refused to direct her call there. Instead she was referred to other areas such as individual accounts management. She finally was referred to the business tax law section where an assistor gave her the help she needed and confirmed that household help and Schedule H questions should be answered by the business section. However, the entire process took three hours.
Response: As a result of your experience, IRM 184.108.40.206.8 is being updated to add specific directions on the appropriate call routing. This change will take effect 10/1/2011. Thank you for bringing this to our attention and giving us an opportunity to improve our customer service.
NOTE: Current and previous reports are also available on this site. The monthly overviews are posted for the prior two years through the current month. You can also access reports for issues closed in prior years on the same page.
We invite you to raise your issues/concerns with your local local stakeholder liaison.