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There's A Form For That

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Services for Real Estate Pros with Frank E. Nute Certified Public Accountant PC

Have you ever tried to carry on a conversation with the IRS? In many ways it’s like talking to a vulture.  It is pretty much a one-way conversation, the person making the inquiries is provided very little information until the IRS can establish the caller’s identity and the reason for their call. One of the first things we do at RTI Solutions, Inc, a Minnesota Tax Resolution Company (resolvetaxissues.com), is to provide the IRS with a signed and dated Form 2848 Power of Attorney. After receiving the Power of Attorney, the IRS representatives are more likely to answer my questions and carry on a conversation.  The key to unlocking the door is to provide the IRS employee with the properly completed, signed and dated form.  Communicating with the IRS involves a lot of forms.  How many different forms are required to complete your federal tax return? Have you ever wondered who is responsible for maintaining the inventory of forms?  That person would have to be a librarian on steroids!  What about the changes to the forms? Talk a about version control.  
The IRS uses many different forms when communicating with taxpayers. For example, if you have a delinquent tax return, the IRS Collection Division will send the taxpayer a Form CP-516 requesting the missing tax return.  If the taxpayer files their tax return but fails to pay the associated tax, the IRS Collection Division will send Form CP-501 indicating there is a balance due on the taxpayer’s tax accounts.  If the IRS doesn’t hear from the taxpayer within a reasonable time they issue Form CP-503, reminding the taxpayer the IRS has not heard from the taxpayer and the taxpayer still has an unpaid balance on one of their tax accounts. If the taxpayer still refuses to make a payment, Collections will send a form CP-504, Intent to Levy.  Still no response, “Notice of Intent to Levy” Letter 11 along with a blank Form 12153 Request for a Collection Due Process or Equivalent Hearing will go out. By the way, the Letter 11 Notice is important because 30 days after the notice, levy action may commence.
The forms can be confusing and overwhelming, however, the worst thing a taxpayer can do is ignore the notices (https://www.rtisolutionsinc.com/home).  The IRS is persistent, they will issue liens and levy assets.  If you or someone you know has received a notice from the IRS and are confused about what steps to take, our CPAs can help (resolvetaxissues.com).  We help taxpayers file responses in a timely manner, implement steps to cease all collection action against the taxpayer for the periods in question, forward the case to Appeals and provide the taxpayer additional time to prepare and submit missing returns. The key to avoiding IRS problems is to respond to their notices in a timely manner never ignore the notices!