The IRS can do this to you.

self | 5/30/14 | self

[Raycpa]

Penalty can only be avoided if you are entitled to medical deduction in excess of 10% of agi or you meet some other exception.
http://www.investopedia.com/articles/retirement/02/111202.asp

[OneWingedShark]

Of possible conspiracy-theory interest.

[VRW Conspirator]

Thanks SES1066 for your professional reply. This case has nothing to do with me...at this time. Responses like yours is one of the reasons that I keep coming back to FR.

[RWB Patriot]

Did you speak out against dear leader recently?

[familyop]

We had a CPA file our taxes for years before seeing any problem. He said that he would answer the CP2000 letter with a letter, and that would solve the problem. A few months later, we received a demand to file a petition. After ranting about politics and how his constituency is cheated out of funding, the CPA said that he would send a letter. He wanted more money and said that the letter would solve the problem.

Wrong. Really, he didn’t do anything. The girls in his office did the work—well, some of it.

We solved the problem by contacting IRS offices. [There’s more than one office at more than one location.] They gathered information from us, closed the case and answered questions for filing our own taxes. No more CPA, and we’re no longer “feeling the pain” from CPAs or other political/regulator folks.

In sum, no vote, no politics. Political folks can’t cheat people into contemporary politics with rackets, and there’s nothing conservative about that. Although CPAs and lawyers may be getting a lot of customers for the time being, our nation is morally bankrupt. But remember that there are a few decent, helpful people here and there.

[familyop]

"Any agent behind in his/her “collections QUOTAS” (which we’ve been assured by IRS do NOT exist) would rummage their “inventory” (their quaint name for taxpayers in their grasp – er – jurisdiction) for lower middle income individuals with foreign or Hispanic surnames."

Yep. Tax filings for immigrants can be very expensive in more ways than one except for those who find the secret, unpublished ways to properly fill out the forms regarding foreign pension incomes and other matters. As I wrote in my last comment, our nation is morally bankrupt. All of the most influential political efforts are filthy with crooks.

They get clients in trouble, and what do the clients do? Give them more money and get into more trouble, of course.

[familyop]

"No discernible difference for CP2000 letters which are simply matching amounts to reported amounts."

Like taking amounts from the wrong lines, turning positives into negatives, regarding the negatives as positives and claiming that some nonexistant income came from odd jobs? Looks more like some influence from *outside* of an office somehow getting into that office.

And folks, look at the location of that office (not the office publicized in vulgar political speech). Who stands to make money from such activity? [Hint: not the un-professionals.]

[Raycpa]

A large part of doing tax returns is anticipating what the IRS computer is going to do with the information they receive to avoid mis- matching. I will often report on wrong line and then back out and put it on right line because that is what IRS is looking for.

Also, much more inclined to pull transcripts on clients who have terrible records to avoid mismatches before filing return.

My firm has gotten good at avoiding cp2000s

[familyop]

Sorry, I committed a human error in re. "wrong line" (as reminded by someone here, copies of the letter and other documents elsewhere in safe places now). All of the relevant errors were made in the IRS office.

The whole income from two small pensions was shown as a negative, but then the total from the two small pensions was calculated as a positive self-employment income on the CP2000 for a self-employment tax (non-existent self-employment).

Turned out after some talks with IRS lawyer-consultants, that the CPA was making minor mistakes in the filings, as had other CPAs before (errors not related to the CP2000 letter). If they'd done the filings right, we would have shown even less taxable income. But I like to make sure that the filings are done correctly.

"My firm has gotten good at avoiding cp2000s"

Very well done, and thank you for the reply. Corruption is so common now, that crooks are using it as an excuse, saying that, "There's corruption everywhere." Some say, "Why don't you move?" Cops have been told the same and more after reporting corruption. Your firm is all the more exceptional and commendable.

[Alberta's Child]

It was around 2011.

[gaijin]

wow!

[Luke21]

“Did you speak out against dear leader recently?”

No, but you can read my posts here.

[lavaroise]

And they will confiscate your passport too.

[stevie_d_64]

Yep...There was some formula that calculated the result based upon what I needed...I liquidated (sold off stock) only what I needed for the treatment...If I come out with a balance it goes right back into the IRA, minus the taxes I have to pay overall, the tax rate was supposed to not be overbearing as the use of these funds has always been for something that is well documented and within the law...

I figured, I’d need about $700-$1000 tops to cover the $5K I needed to use for this procedure...For this particular reporting period...

[Raycpa]

Your response worries me. Some of what you are saying is not possible or irrelevant to IRAs ...get pro to review transaction.

[Bloody Sam Roberts]

Kinda thought as much. That fascist Muslim needs to be...well...needs to be gone. Glad it worked out for you. Mostly.

[Hoodat]

They don't even audit you anymore. They just recalculate and demand payment. This is how they operate.

You obviously were not aware of how fascism works.