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Isn't there a spot on the response form for "agree in part"? What I would do if it was my client is prepare the X to calculate the amount due. Send in the amount you calculated with the response form and an explanation of what you calculated. Don't send in the X as it will cross paths with collections. You may have to wait for the final assessment to appeal if they don't accept your explanation. Get your POA in as soon as you can (make sure you mark the box to be copied on correspondence) and attach the signed copy of it to your response form when you send it in. Others may disagree with this approach, but I think it is quicker than mucking up the works with an X. They are waiting for a response, not an amended return. Tom Longview, TX

15 months is all that he got? That seems light for such blatant, intentional fraud.

I have included a completed Sch C ( including related forms , if necessary) and 1040X with "DO NOT PROCERSS. SUPPORTING INFORMATION ONLY" written in large letters on the top in the past with no issues. Have also done this when clients have forgotten to give 1099-B's.

If you think a 1040-X may help clarify the situation, you can write on the top of it "DO NOT PROCESS--FOR COMPARISON PURPOSES ONLY"

I agree, filing a 1040X is not the correct response.

It will be interesting to see if Intuit can filter out the creative garbage that our CLIENTS create so we can get useful information from QB..... Tom Longview, TX

Always glad to see these cheaters get caught and made an example.

In today's world, we are fortunate he received that sentence and not a week of probation.

" INTU +1.28% on Tuesday announced a big push into generative artificial intelligence software, with new experiences to be added across the company’s business lines, including TurboTax, Credit Karma, QuickBooks, and Mailchimp. Intuit (ticker: INTU) CEO Sasan Goodarzi thinks this could be a game changer, one that will fulfill the company’s mission, laid out more than four years ago, to “become the financial assistant in the pocket of our customers…to help them make decisions, put more money in their pocket and help them thrive." It will be interesting to see if Intuit can filter out the creative garbage that AI creates in addition to the useful information?

Send in the "agree in part" and send in any specific schedule (such as C, with auto worksheet, overall tax calculation too maybe) that supports the disagreements. Nothing else; don't send a 1040X or even a full amended 1040. Because what Tom warns of is real. Give them enough information so that the only sensible action for them is to agree with you, but not enough that a new-hire ninny could make worse trouble.

Back 20 years ago when we had competent IRS processing agents and an effective PPL, I would have agreed with you. I would rather get a Notice of Deficiency and file a tax court petition than to send in a tax form that I don't want them to process... Tom Longview, TX

This could be a can of worms. Was the IL income included in the Federal income? Was the client a resident of IL or WI? I would amend because WI is really picky about these two or three returns. Or, is reciprocity involved?

Ya know, I always wonder what people are thinking when they engage in the unscrupulous activities. Do they think they won't get caught? I guess living the good life isn't so good right now. Will the IRS ever get their money from this guy? Now I laugh, I alerted a CPA of a client of mine about miss classifying an account so there are no questions in the event of an audit. Seems really trivial compared to this. I hope this guy prepared his own tax returns and didn't take anyone else with him.

"Kernersville, North Carolina: Business owner Brandon Michalak has been sentenced to 15 months in prison and ordered to pay restitution of $956,028 to the IRS. Michalak, who pleaded guilty in January, was part-owner of the metal recycling business Sarah's Recycling that specialized in the collection and bulk resale of used catalytic converters. From 2014 to 2018, he omitted $11,022,953 in sales generated by his business. Each year, Michalak reported minimal taxable income and claimed the EITC even as he led a lavish lifestyle that included home and property purchases without financing, home renovations, pool installation, jewelry purchases in cash, and at least 20 vehicle purchases for himself and family members."