Mike: Hello. I’m Mike Landsmann, tax analyst in the IRS’s Small Business/Self-Employed Division, with the final segment of a three-part series about the Correspondence Examinations. This is a reenactment of an IRS National Phone Forum from August of 2008, and joining me is my colleague, John Caggiano, program manager of Campus Examination Policy. Welcome, John.

John: Thanks, Mike.

Mike: By now, I hope everyone has listened to part 1, where John outlined key areas of interest relating to our correspondence examination program, and part 2, where I talked about general correspondence exam processing and improvements to the process. In part 3, John and I will cover some commonly-asked questions.

Mike: John, the first question is about the IRS phone service: It reads, “Sometimes when I call, I spend a long time on hold or listening to a recorded message. Why is it so difficult to get to the person who is assigned my case?”

John: Mike, the IRS hears many concerns about being reached by phone and has looked into the average time taxpayers wait on hold or in the queue waiting to speak to an examiner. On average, it takes about five minutes to answer a call. The IRS customer experience is a continuing subject of many studies. As mentioned in the earlier parts of our presentation, the inventory is largely worked in an automated manner. Correspondence examinations are assigned to an examiner only after a response is received. If the case is assigned, enter the examiner’s extension number when prompted, if you know it. If you do not get through to the examiner, leave your name and number and best time to reach you so the examiner can promptly return your call. If the case has been reassigned to another examiner, IRS procedures require examiners to fully document a case so another examiner can seamlessly pick the case up and continue the examination. The IRS recognizes that access to an examiner is an area that can be improved upon in the future.

John: Next we have a question about our mail processing. It reads, “I’ve contacted you by mail and haven’t received a response. How do I know you’ve received my correspondence?”

Mike: Here’s another common theme we’ve heard from the practitioner community - acknowledgment letters. When this information was originally presented, an acknowledgment letter would generate if the IRS did not respond to the taxpayer within 30 days after a response was logged onto our system. We have implemented a change that now acknowledges receipt of the correspondence as it is received. This letter will go only to the taxpayer if no Power of Attorney for the taxpayer’s representative is on file with the IRS. Additional letters will also be sent if the IRS does not respond in the time promised in the first letter. If you are not sure your response has been received, call and ask. The assistor on the phone may not be able to tell you much about the case other than the response was received. But this is important, as it will stop future notices from being issued.

The IRS is working hard to resolve cases where it appears subsequent notices have been issued without considering a previous response from the taxpayer. Our goal is to keep the taxpayer better informed about their case and to improve the overall taxpayer experience. Suggestions in this area are always welcome.

Mike: John, here is a question frequently asked but not directly related to a correspondence examination. But the answer applies to our notices as well. “I’ve received a CP-2000 and I filed an amended return. When can I expect to hear from you?”

John: When we talk with practitioners about correspondence examinations, we often get questions about CP-2000 notices. However, the CP-2000 notice is not part of the IRS’s Correspondence Examination Program.

The Automated Underreporter Program, or AUR, generates the CP-2000 notice. These programs seem very similar from the taxpayer’s perspective so I’ll cover the primary distinctions.

AUR only questions discrepancies that are identified after comparing information returns for an individual or a married couple to the entries made on their tax return. Correspondence examinations do use third-party information to identify potential audit workloads, but primarily identifies the audit workload through entries that appear to be incorrect or have a high likelihood for a tax adjustment. Additionally, a correspondence exam may request that the taxpayer provide records to support a deduction or other items on the return.

The timeframes and notices are very similar in both programs.

As a reminder, when filing an amended return in response to a CP-2000 or a correspondence examination letter, attach the amended return to the CP-2000 or examination letter behind the response page and mail it to the office that sent you the notice. It is very important to make sure you do not send the amended return to the office where you would normally file an amended return. This can often result in a long delay and prompt unnecessary notices.

John: Mike, here is a question about closed examinations: “My client brought a case to me that has been closed. Can I do anything to change your determination?”

Mike: Even after the examination has been closed, you still have options if you believe that you have been assessed an incorrect amount. The most common avenue is the Audit Reconsideration Process. More information about this process is in Publication 3498-A, titled The Examination Process (Examinations by Mail). Publication 3498-A is on our Web site, IRS.gov. You may also pay the amount due and file a claim.

The IRS will reconsider cases when new information is submitted that was not previously considered.

Some of the reconsideration areas have been consolidated. The easiest way to find out how to file your specific type of reconsideration is to call the office that originally examined the return. You can also call 1-800-829-1040 and ask where you should file a request for reconsideration. You may also file directly with the office that examined your return.

And those are some of the common questions.

John: Thanks Mike. In closing, Mike and I would like to sincerely thank our listeners, and give a special thanks to the many tax professionals who have provided valuable feedback on our Correspondence Examination Program.