David Kirkpatrick

August 22, 2008

IRS sending new warning letter

Filed under: Business, et.al., Politics — Tags: , , , , , — David Kirkpatrick @ 6:22 pm

More evidence the “kinder and gentler” Internal Revenue Service of the last several years is long gone. This warning letter sounds a bit more ominous than the missive it’s replacing. The lack of detail ought to make the recipient pore over their entire questioned return.

From the link:

The new warning letter, the CP2057, will differ from the CP2000 letter that the IRS has been sending out for years, according to The Wall Street Journal. The earlier type of letter included suggestions for proposed changes to areas such as income, credits and deductions, while the CP2057 will mainly ask taxpayers to double-check parts of the return and file an amended return if they have made a mistake. Unlike the CP2000, it will not include the exact amount owed.

The IRS will begin testing the new automated notices later this year and expand their use if they succeed in collecting extra revenue.

“The Automated Soft Notice (CP2057) is a test involving approximately 31,000 notices mailed this fall,” said IRS spokesman Bruce Friedland in an e-mail. “If the test results indicate limited underreporting in the subsequent year and self-correction of unreported income, we hope to expand the use of this notice. A very small portion of our staff is assisting in this test – again, it is designed as an automated notice. The CP2057 asks the taxpayer to file an amended return, or work with the document issuer to correct erroneous documents.”