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As distasteful as wide net casting collection is, like many things, there are two sides. Low collection rate or not, it makes some business sense to farm out collections for whatever fee they get for assignment, rather than taking a zero. The IRS is a business too... as are all tax agencies. (such as how many are looking at forced taxes, such as retirement deductions, as a profit generator with several companies offering turn key "solutions"). If not liable, and the letter is not backed by a court order, it could be a valid action to ignore it. In some ways, no different than the number of email and mail "junk/fake/fraud invoices" most receive on a regular basis. I try to remember to fall back on not volunteering anything to anyone. I just listened to a VM stating it was a courtesy call before receiving a registered collection letter tomorrow... I bet there is no letter arriving tomorrow.

Now here's something you don't read about every day! "Agents from the Internal Revenue Service’s Criminal Investigation division raided the Houston headquarters of tax consulting firm AlliantGroup, seizing computer servers Friday, May 20, and prompting the firm to give employees the day off Monday until they were able to return Tuesday morning. The nature of the investigation is unknown, but is thought to be related to the firm’s work in securing tax credits and other incentives for clients, some of which have been challenged by the IRS, leading to lawsuits after the IRS denied the claims and clients refused to pay the firm, according to the Going Concern blog. Even though employees were allowed to return on Tuesday, IRS agents returned to the Galleria building where the firm is based and continued to search other floors Tuesday"

Well here is a new one. Just got a letter, addressed to ME (at my business address), for tax debt owed by a former client of mine, demanding payment from me! There was a box to check stating I dispute the debt, reason: it ain't mine! and I faxed that in immediately - along with a strongly worded letter demanding that they remove all association of this debt from my name and address. I also stated in the letter that if this affects my business credit rating, I will consider legal action against them. So I think they have been dealt with. We'll see. The larger issue is that they could only have gotten my name and contact information from the IRS, which has somehow conflated my (now-expired) POA with the principal of the LLC in the paperwork they are sending to debt collection agencies. Who would I contact to protest this/warn the IRS/demand they ensure that debt collectors are going after the tax payers, not the tax preparers? This is carelessness in the extreme. Frankly, if any of us had sent taxpayer confidential information out to a debt collector and put an IRS agent's name and contact as the person responsible, the entire agency would be all over any of us, stripping us of our EFINs and PTINs and whatnot. It's not okay, just because it's them doing it, not one of us.

On policy allocation put his or her at 0 percent.

Catherine, I have a lot fruit trees too. Once I heard someone referred my home as " The house with a lot fruit trees at the corner." I have pear, apple, quince apple, cherry, fig, persimmon, strawberry, pomegranates, peaches, melons and a chuck berry. Blue berry died already. Sounds a lot, but they are not doing well. My fruit trees are dying. No fruit from persimmon for last two years, no fruit from peaches because the leaves dried up by it self. , Cherry is too young. I dont know what to do now.

Hi Illmas, I dont have this type case, but I remember when you input 1095A, there is a box said is there another person on it.? So, there parents should mark yet, and then your client report his share? I dont know whether it is consider a way to resolve it? Thank you!

I was so proud of myself after putting in a new shrub bed--spent a few weeks visiting local nurseries picking out just the right plants, then supervising hubby digging the perfect holes, adding the good nutrients, mulching, etc. Abby clearly outdid me in square footage and money and effort spent! And you can't just sit back and enjoy. New plants need deep watering, especially in this unseasonably hot weather. I've been spending a good half hour twice a week on watering, surely eclipsed by the amount of time Abby has to spend. Isn't it nice to have projects that go beyond measuring how many inches were reduced off our stack of paperwork each day? Randall's photo reminds me of our yard in CT when the tornado came through.

The key question here is whether the owner has "power of appointment," meaning she can change the terms of the agreement. If so, she didn't really make a gift of a current interest so the proceeds of the sale go to her. If she had no power of appointment, there should have been a gift tax return filed. Based on her age at the date of the gift, use IRS tables to determine the value of her interest and the remainder interest. I'm not sure, but I think you have to calculate the value of what's left of her interest when the house is sold using the same tables and the ORIGINAL value (I'm sure of that part) and her new age. The transferees essentially have to buy out her remaining interest by paying her for it. She may be eligible for the 121 exclusion but anything they receive above their basis is subject to cap gains tax. Answer to your specific question: She is gifting a home, so basis is always her basis just like any other gift. If she held power of appointment, she gets the proceeds and the 121 exclusion. If not, she gets her piece and the transferees have cap gains on their piece.

I would be surprised if you do hear anything from them. I wouldn't be surprised if you receive another letter demanding payment. Those companies are ruthless.

Well, I faxed in my letter on Friday and have heard nothing. For whatever that's worth. All I had was a now-expired POA for tax returns only, signed by a partner/member who is now deceased (hence, the POA being expired).

When I get asked if my prices are negotiable, I tell them, "Yes they are - but upwards only!" That usually either shuts them up or makes them walk. Either way, I'm better off.

This thread brings back fond memories of a client from the early 1980's. He was partially disabled, but a very proud, independent type. He owned a large truck from his working days and to earn a little extra money he would haul livestock to market for local farmers. Never earned very much profit but he wanted to "pay his fair share" because he was receiving a small disability payment. I admired his integrity. Each year he brought me his records - a calendar kept in his truck for writing down his mileage and hauling fees. Needless to say, after a year of being carried in the cab as he loaded, hauled, and unloaded animals, the calendar was something that needed to be handled "with care". Especially since it might have occasionally fallen on the floor. (Don't ask me how I know that)

Probably just fishing with a wide net. If anything like payroll processing, anyone with the appearance of access to or control of funds will be looked at, and will likely have to defend.

Yes.

Was this letter from one of the collection agencies that the IRS is subcontracting with?

I think I told this already or the trucker with 2 paper bags of everything!! including receipts I did not want to know about and 2 pair of dirty underwear!! and hi ssiter came to retrieve them! Sorry - went to the trash but the worst is the one that the cat got wet!! eeeww - made copies and threw originals away.

Years ago I had a client bring in a box of receipts that he'd spilled a full cup of coffee on. Not a one of them was legible. Gave 'em back and told him to do his best to figure it out because he didn't make enough to pay me to do it! He came back later with hand-written totals.