IRS really scutinizing returns

[Abby Normal]

Client who has had sub-poverty level wages for a long time, had 50K of income due to a K1 fro a poorly handled (IMHO) estate. IRS wants to be sure she really filed the return and they want copies of all W2s, 1099s, etc. This became a refund return because I had her pay in enough on 4/15 with extension, so I understand the IRS computer questioning this, but the refund was only $90 so they shouldn't be wasting everyone's time.

[Elrod]

I R S.....=......Isn't _ Really _ Sensible.

[taxxcpa]

They may be questioning it due to the large increase in income

[SaraEA]

jm, what you are experiencing is the IRS's anti-fraud filters in action!  I was at a seminar last week where the IRS liaison told us the IRS had 10 filters in place just a few years ago; now they have 140.  Hmmm....here's a taxpayer who hasn't filed in years and suddenly surfaces with a K-1 (that won't be in the system for months) and wants a big refund.  Or it could be that someone who knows she doesn't normally have to file has been filing using her identity.  That someone got hung up in the filters this year, and now the agency wants to identify the real taxpayer.  Or maybe she does file but her income is so aberrant this year that the return was hung up by a filter.  We've had lots of clients get letters this year asking to see their information documents (the same standard letter your client got).  Some were understandable--they changed addresses, banks, names.  Others seemed to have no reason except that just maybe a bogus return had been filed using their identity and the filters put it in limbo, waiting for the real taxpayer to come forth.

[Abby Normal]

Don't get me wrong. I appreciate their efforts. Otherwise I'd feel like a lot of what I do is a waste of time.