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Thread: IRS letter

  1. #1
    Member jimbroznan's Avatar
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    IRS letter

    Anyone ever get a letter from the iRS stating you may owe a considerable amount? In 2019 I did a direct transfer of money from a Vanguard IRA to my credit union and set up two IRA CDS. However, the IRS apparently did not get the message and treated it as a withdrawal The letter said I had until 6/14 to respond. I mailed back two forms that day showing the contribution and the two new CD accounts.. The next day I went up to the credit union and they said they would mail me a "corrected" form 5498 (IRA Contribution statement) so I assume the first form was incorrect. So, if any of you have had previous dealings with the IRS have they been reasonable and after looking at the documentation cleared the record without further hassle? Or do the auditors have a quota and are expected to collect XX$ for each audit? It is impossible to get a live person on the phone and the estimated response to a letter is 30-90 days.


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    Member BernieCarbo's Avatar
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    Re: IRS letter

    Quote Originally Posted by jimbroznan View Post
    Anyone ever get a letter from the iRS stating you may owe a considerable amount? In 2019 I did a direct transfer of money from a Vanguard IRA to my credit union and set up two IRA CDS. However, the IRS apparently did not get the message and treated it as a withdrawal The letter said I had until 6/14 to respond. I mailed back two forms that day showing the contribution and the two new CD accounts.. The next day I went up to the credit union and they said they would mail me a "corrected" form 5498 (IRA Contribution statement) so I assume the first form was incorrect. So, if any of you have had previous dealings with the IRS have they been reasonable and after looking at the documentation cleared the record without further hassle? Or do the auditors have a quota and are expected to collect XX$ for each audit? It is impossible to get a live person on the phone and the estimated response to a letter is 30-90 days.
    This happens more than you would think. I’m guessing that whatever you did so far was going to take care of it, but if it doesn’t, it will just go on and on and finally speak to a real person. You will speak to that person, explain what happened, and they will take care of it on the spot.

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    Member SteelSD's Avatar
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    Re: IRS letter

    Quote Originally Posted by jimbroznan View Post
    Anyone ever get a letter from the iRS stating you may owe a considerable amount? In 2019 I did a direct transfer of money from a Vanguard IRA to my credit union and set up two IRA CDS. However, the IRS apparently did not get the message and treated it as a withdrawal The letter said I had until 6/14 to respond. I mailed back two forms that day showing the contribution and the two new CD accounts.. The next day I went up to the credit union and they said they would mail me a "corrected" form 5498 (IRA Contribution statement) so I assume the first form was incorrect. So, if any of you have had previous dealings with the IRS have they been reasonable and after looking at the documentation cleared the record without further hassle? Or do the auditors have a quota and are expected to collect XX$ for each audit? It is impossible to get a live person on the phone and the estimated response to a letter is 30-90 days.
    jim, if this continues to cause pain after you've sent the corrected info, try going to the link below:

    https://www.taxpayeradvocate.irs.gov.../#FindlocalTAS

    My wife and I ran into a similar issue when she rolled over a 401K. When you first call your "local" TAS office, you may have to leave a message. Do so and make it detailed, including a explanation of what hardship you are encountering.

    After the IRS closed all their offices last year, this was the ONLY group who would interact with consumers. It takes a while for contact and if/when they call, it's always going to be at the most inopportune time. But they're attentive and helpful- at least they were with my wife's situation, and during a time where they were absolutely slammed with taxpayer inquiries. They're not auditors or tax "collectors" and they're the real deal.
    "The problem with strikeouts isn't that they hurt your team, it's that they hurt your feelings..." --Rob Neyer

    "The single most important thing for a hitter is to get a good pitch to hit. A good hitter can hit a pitch that’s over the plate three times better than a great hitter with a ball in a tough spot.”
    --Ted Williams

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    Re: IRS letter

    Quote Originally Posted by jimbroznan View Post
    Anyone ever get a letter from the iRS stating you may owe a considerable amount? In 2019 I did a direct transfer of money from a Vanguard IRA to my credit union and set up two IRA CDS. However, the IRS apparently did not get the message and treated it as a withdrawal The letter said I had until 6/14 to respond. I mailed back two forms that day showing the contribution and the two new CD accounts.. The next day I went up to the credit union and they said they would mail me a "corrected" form 5498 (IRA Contribution statement) so I assume the first form was incorrect. So, if any of you have had previous dealings with the IRS have they been reasonable and after looking at the documentation cleared the record without further hassle? Or do the auditors have a quota and are expected to collect XX$ for each audit? It is impossible to get a live person on the phone and the estimated response to a letter is 30-90 days.

    God Speed, the IRS is a department I hope to never have to contact about ANYTHING. They want (and usually can take) their stuff immediately but if they screw up or drag their feet it can take YEARS. I've talked to too many WVians and I know as soon as I hear "back Federal Taxes" I'm not getting much out of them for a while.
    Quote Originally Posted by teamselig
    The pessimist complains about the wind; the optimist expects it to change, the realist adjusts the sails.

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    Re: IRS letter

    So many different departments to deal with. Everyone is very helpful that I’ve dealt with. Turnaround time is slow. They will put your full SS info on a notice instead of X out stuff. They don’t care. They have all the power.

  7. #6
    Member adkindo's Avatar
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    Re: IRS letter

    Quote Originally Posted by jimbroznan View Post
    Anyone ever get a letter from the iRS stating you may owe a considerable amount? In 2019 I did a direct transfer of money from a Vanguard IRA to my credit union and set up two IRA CDS. However, the IRS apparently did not get the message and treated it as a withdrawal The letter said I had until 6/14 to respond. I mailed back two forms that day showing the contribution and the two new CD accounts.. The next day I went up to the credit union and they said they would mail me a "corrected" form 5498 (IRA Contribution statement) so I assume the first form was incorrect. So, if any of you have had previous dealings with the IRS have they been reasonable and after looking at the documentation cleared the record without further hassle? Or do the auditors have a quota and are expected to collect XX$ for each audit? It is impossible to get a live person on the phone and the estimated response to a letter is 30-90 days.
    I am not aware of a quota or anything similar....and they have been somewhat reasonable in my limited interactions (but honestly, they were correct and I basically agreed...so not great examples.) As an accountant (not a tax accountant), I have heard a thousand stories around the office or just in discussions with other accountants, and my best summary would be like most other encounters in life, it really depends on the IRS employee. There is no one simple rule in that I have known guys in the office (Big4 Office) that claimed they sometimes had their client communicate directly with the IRS when possible because they felt like the IRS employee got a bruised ego when being challenged by a Big 4 Tax CPA.....but I have heard other tax accountants tell me the opposite where the IRS employee would often back down when dealing with a professional. Some seem to have a lot of autonomy while others seem to consult with a supervisor on every decision.

    I would say IRS employees are similar to police officers in one way....most are reasonable but there is a higher ratio of a**holes among the group. Most likely provide the information they request, and it will be resolved....but do not hold your breath for them to be courteous along the way.
    “The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane.”
    ― Marcus Aurelius

  8. #7
    Member jimbroznan's Avatar
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    Re: IRS letter

    Update
    I responded to the IRS letter on 5/20, sent addition information on 6/3.
    Called on 6/21 (at 7AM soon as lines open) on hold 90 minutes had to hang up
    6/22 (7AM) on hold 150 minutes they disconnected me
    6/23 on hold 90 minutes got a person, no record of any of my correspondence
    Sent a certified letter on 6/23 with all the forms
    7/7 called(again at 7AM) on hold 90 minutes, got a person, no record of any of my correspondence, but it is taking 60-80 days from the time they receive the letter for them to open and process the letter so I shouldn't waste my time calling again. I believe they are charging 1% a month interest

    According to the Washington Post only 1/50 callers get through calling the regular IRS line.

  9. #8
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    Re: IRS letter

    That’s a fairly common thing. You have the right form and have sent the right stuff. You’re fine I wouldn’t worry about it.

  10. #9
    Member JaxRed's Avatar
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    Re: IRS letter

    I think I would go to my Congressman. Over the last few years I've had a couple issues with the Social Security/Medicare system and the same lack of response. When I went to my Congressman (on two different occasions) I got pretty quick (within a few weeks) response.

    They'll ignore you, but won't ignore a Congressman. If someone down the road is looking at it, the fact you were being aggressive in getting problem solved will help. I would document all those delays in your complaint. Your congressman should have an online form.
    Last edited by JaxRed; 07-09-2021 at 09:52 AM.
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    Re: IRS letter

    Quote Originally Posted by jimbroznan View Post
    Update
    I responded to the IRS letter on 5/20, sent addition information on 6/3.
    Called on 6/21 (at 7AM soon as lines open) on hold 90 minutes had to hang up
    6/22 (7AM) on hold 150 minutes they disconnected me
    6/23 on hold 90 minutes got a person, no record of any of my correspondence
    Sent a certified letter on 6/23 with all the forms
    7/7 called(again at 7AM) on hold 90 minutes, got a person, no record of any of my correspondence, but it is taking 60-80 days from the time they receive the letter for them to open and process the letter so I shouldn't waste my time calling again. I believe they are charging 1% a month interest

    According to the Washington Post only 1/50 callers get through calling the regular IRS line.
    I don't know how many are actually open but you may try to find a local office:
    https://apps.irs.gov/app/officeLocator/index.jsp
    Quote Originally Posted by teamselig
    The pessimist complains about the wind; the optimist expects it to change, the realist adjusts the sails.

    William Arthur Ward


  12. #11
    They call me "chef"
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    Re: IRS letter

    I lost about $1,400 seven or eight years ago because the IRS flagged my tax return as potential identity fraud. I submitted what they asked for, never got a response, my tax return credit was never issued. For about 1.5 years, I called back every few months for an update and each person I spoke to (1-2 hour hold each time) gave me wildly different instructions on how to proceed. Each time, they said give them 30 days to process the submission and release my return. After 1.5 years of no progress, I gave up. Luckily, my subsequent years' taxes weren't affected and went smoothly but it was a mess and, if given the option, I'd love my $1,400 and the fruitless hours of my life back.

    And when I reached out to tax specialists in my area, they told me they'd charge me $300 an hour to do the exact same thing I was doing–calling the IRS and waiting on hold–so I should try to resolve it on my own.
    Last edited by Larry Schuler; 07-09-2021 at 05:41 PM.

  13. #12
    Member plantmanky's Avatar
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    Re: IRS letter

    Its going to take you probably a year to or more to deal with this with the current state of the IRS. They simply can not process everything. My 2019 tax return still has not been processed (good thing I owe every year.) They have it, just not processed it yet. (found this out when I requested my tax transcript for a loan refi in January of this year) Never got any stimulus money because of it, because of that it created a refund for 2020 return, that I just assumed I wouldn't see and so I credited the funds to 2021 tax return. We will see if they get anything caught up.

    To add, I run three 501C3 organizations that all file full 990 returns, and have the same issues with getting the tax returns processed. (its actually caused on audit problem with one of the organizations because the IRS hasn't posted online any of our returns since 2017.)

    In my experience IRS has always been a headache, but easy to deal with, especially when you actually get a person to deal with. If you cant get a person, you have to play the letter game till they fix the issue.


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