CP 87A

[TaxmannEA]

I've had 4 clients come in this week with CP 87A notices titled "You Need To Make Sure Someone is Your Dependent". They will list at least one dependent SS# as one that they are concerned about. All that I have reviewed have been OK, but I suppose that an ex-spouse, etc. is trying to use the dependent.

One of these people had called the IRS and was told that over a milion of these have been mailed out recently. I guess that we needed something to keep us busy till tax season.

[ILLMAS]

I've had 4 clients come in this week with CP 87A notices titled "You Need To Make Sure Someone is Your Dependent". They will list at least one dependent SS# as one that they are concerned about. All that I have reviewed have been OK, but I suppose that an ex-spouse, etc. is trying to use the dependent.

One of these people had called the IRS and was told that over a milion of these have been mailed out recently. I guess that we needed something to keep us busy till tax season.

I guess this part of the IRS being more friendly. This past monday I participated in the first meeting of an audit for one of my associates client (Form 1120) that has been audited for 2005, 2006, 2007 and now 2008 and possiby 2009 (depending on what they find in 2008). The auditor told us the IRS is taking new approaches and is trying to be more friendly then before, supposely is this something new because of the bad rep the IRS has always gotten, she took the time to talk to us about "Your rights as a taxapayer", the examination process (she showed blank IDR's and explained what they were), privacy act and talked about your appeal rights. She talked about Fast Track Settlement (www.irs.gov keyword Fast) and something new I had not seen in prior audits before, a sort of affiadavit for the taxpayer to sign and to commit to provide requested information within a certain amount of days the taxpayer decides, for example if you write 10 days, then the auditor expects the requested info in 10 days for all the requests, however they can allow you more time if you notify them. And finally customer service, the assigned agent will be a one stop shop, for example if you recieve a notice from the IRS non-related to the actual audit, you can deal directly with the agent instead of calling the IRS. If you have time, you can read the following publication to learn more about the new steps the IRS is taking:

http://www.irs.gov/pub/irs-pdf/p4837.pdf

MAS