NECPA in NEBRASKA Posted August 24, 2009 Report Share Posted August 24, 2009 I'm just checking on the proper response. I received Notices of Deficiency today for 2004-2006 as a POA for my clients. They had not filed any returns since 2003 for various reasons, (including the wife had a stroke and they moved out of state and misplaced everything). The husband did send a response finally to the IRS on July 20 and I received the last W2 today. I just finished everything through 2008. The IRS filed substitute returns with a total due of $50,000. They only owe $1,500. I called the office on the deficiency notice and asked about filing a tax court petition and she told me that I had 90 days to send in the actual returns and that the tax court petition was not necessary. Am I reading this wrong? It looks like the tax court petition should be filed and send the returns anyway. I have to overnight this to the client tomorrow to sign, but I want to make sure that we are not going to get nailed by not filing the petition. I just don't trust the oral advice from the IRS. Thanks! Bonnie Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted August 25, 2009 Report Share Posted August 25, 2009 You may not need to file the petition, but get it ready and file it timely if you do not get this cleared up BEFORE the filing deadline. Odds are good if the process just started that you can get it sorted out without actually filing the petition, but if you are within 45 days of the deadline you can not expect to get it 'fixed' in time, so should file anyway. But if you are just at the start of the 90 days, by all means try to work with them now. Just don't trust them to keep to any 'promise' made by someone on the phone, to the point that you miss the deadline. Quote Link to comment Share on other sites More sharing options...
NECPA in NEBRASKA Posted August 25, 2009 Author Report Share Posted August 25, 2009 Thanks, KC. I will keep an eye on the calendar and hope that the IRS doesn't drag their feet. Bonnie Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted August 25, 2009 Report Share Posted August 25, 2009 I know you know this, but just as a reminder - the only way to go to tax court without paying the tax up front is to file the petition within the statutory period. It is hard and fast. Your client (even though it is not your fault they are in this mess) will not be happy if they have to cough up 50K before they can go to court. Protect yourself and make sure you file the petition a week before the due date CERTIFIED RETURN RECEIPT. Just my 2 cents. Tom Lodi, CA Quote Link to comment Share on other sites More sharing options...
NECPA in NEBRASKA Posted August 25, 2009 Author Report Share Posted August 25, 2009 Thanks, Tom. I set up four different reminder dates in my calendar to keep on top of this in case the IRS doesn't rescind the deficiency. I've been lucky because I haven't had to do this for a client in 30 years. Bonnie Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted August 26, 2009 Report Share Posted August 26, 2009 Actually, writing a tax court petition is the part of my job I love the most. I have only done it 3 times, but I love doing the research. When you know for certain you are absolutely correct in your application of the tax law, and you write it out with all the code sections, regulations, case law, and rev. rulings that support your position, there is a great feeling of accomplishment. BTW, the client won on all three. Beating the IRS is fun. Tom Lodi, CA Quote Link to comment Share on other sites More sharing options...
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