Re: [taxchat] Re: Petition Tax Court

Yeah, often when we get into the details it turns out there are errors on both sides.  Still worth fighting for the amount she does not owe, but as long as she gives you [best if it's in writing] her decision not to file in tax court, that's fine for you.

 

KC

On Tue, Nov 11, 2008 at 1:37 PM, Donna J. Perrone <donnaperrone@sbcglobal.net> wrote:

KC-

 

I have been re-examining this whole situation for my client.  Good thing I keep very detailed interview notes, because they showed what the client told me about her kids tuition. I also keep copies of all documents given and the tuition statement she provided me did not show any payment details.  I think she folded it in half and faxed it to me.  NOW, I have copies of the full page and lo and behold....one child received grants. So that cannot be included in the tuition amounts reported on the 8863 and also on the amount I can exclude for higher education expenses on the 5329.

 

I will call the IRS tomorrow and ask them if they will accept a 1040X or do they want just faxed details. Also, in their analysis, they picked up 2005 tuition payment amounts instead of 2006.  So there are errors both sides.

 

Once I explained all this to her, the client indicated that she didn't want to go the Tax Court route. 

 

Donna J. Perrone, EA

East Haven, CT

203-469-4939

203-468-2038 fax

 

 

IRS Circular 230 Disclosure: Unless expressly stated otherwise, any tax advice contained herein, including attachments and enclosures, is not intended or written to be used, and may not be used, for the purpose of (1) avoiding tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions, or (2) promoting, marketing or recommending to another party any tax-related matters addressed herein.

 

---

From: taxchat@yahoogroups.com [mailto:taxchat@yahoogroups.com] On Behalf Of Jenkins LawFirm
Sent: Tuesday, November 11, 2008 2:24 PM
To: taxchat@yahoogroups.com
Subject: Re: [taxchat] Re: Petition Tax Court

Donna, with only three days, download and file those forms!  Then you will have all bases covered.  You should not have to do this, but the new, REORGANIZED IRS is so screwed up, you have no choice but to protect your client. 

 

KC Jenkins

 

PS, I don't know why so many responders ignored the fact that you ARE an EA and go on about whether you can  or not.  You can.

On Tue, Nov 11, 2008 at 1:12 AM, D Mullin <geek_girl_dany@yahoo.com> wrote:

I've got one also. Sales tax deduction on Schedule A that is not being allowed. I won't go into all the details but I was told by the examiner to call the Taxpayer Advocates Office... then the next step would be tax court. I am sending the TAO form in tomorrow for this customer.

You could try the TAO first and see what they say.

CD

---

From: Tina Vanderberg <tmvtaxes@sbcglobal.net>
To: taxchat@yahoogroups.com
Sent: Monday, November 10, 2008 5:41:41 PM

Subject: [taxchat] Re: Petition Tax Court

FYI-I to have two clients right now who have been issued notice of
deficiency before time has passed and cannot get resolved. Not sure
what is going on????

Tina Vanderberg

--- In taxchat@yahoogroups .com, "John Stevens, Equi-Tax"
<equitax@... > wrote:
>
> Donna,
>
>
>
> I assume your client is just trying to avoid the early withdrawal
penalty?
>
>
>
> The IRS has been pulling the trigger fast lately in issuing
deficiency
> notices, in some cases, I've heard, even before the time to submit
> additional documentation has passed, because they know that they
collect a
> lot of money from TP's who just send in the check out of fear. As
others
> have said, you have to be admitted to practice before the Tax Court
in order
> to complete a petition for your client, but the process isn't too
involved,
> and your client can probably do it. After the petition is filed,
the TC
> will send it back to Appeals, where you could then get it resolved
assuming
> you have a POA on file. Make sure it's worth it to your client for
you to
> get involved in order to avoid the $2000 early withdrawal penalty.
I assume
> the tax on the 20k has already been paid.
>
> John Stevens, EA
> Stevens Tax & Accounting, Inc., dba Equi-Tax
> 1870 - 50th St. E., Suite 8
> Inver Grove Heights, MN 55077
> 651-773-5000
> FAX 651-457-4529
> equitax@...
> www.equitax. net
>
>
>
> _____
>
> From: taxchat@yahoogroups .com [mailto:taxchat@yahoogroups .com] On
Behalf Of
> Donna J. Perrone
> Sent: 11/10/2008 2:11 PM
> To: taxchat@yahoogroups .com; 'TaxTalk Listserv Members'
> Subject: [taxchat] Petition Tax Court
>
>
>
> A client of mine received a Notice of Deficiency back in Aug 15,
2008. She
> took $20,000 from an IRA and used it to pay for tuition for her 2
children.
> For some reason, they never received the 5329 with code 8 -
Exemption for
> Higher Education costs. Can't figure out why, because I efiled her
return.
>
>
>
> When we got the Notice of Deficiency, I responded with a letter, a
POA,
> copies of the 5329, and copies of the kids tuition statements
showing the
> fees. For the son, we had $9424 of fees from one semester. My
client didn't
> get me the second semester's fees. We sent copies of both
semester's feese
> for the daughters school account fees.
>
>
>
> Today I received another letter from the IRS with form 886-A
Explanation of
> Items where they are still disallowing the 10% penalty because they
said we
> didn't provide all the necessary documentation.
>
>
>
> Part of the problem was that they picked up 2005 payment amounts,
not 2006.
>
>
>
> Now they say in their letter "Your time to petition the United
States Court
> will end on November 13, 2008. However, you may continue to work
with us to
> resolve your tax matter, but we cannot extend your time to petition
the
> United Stated Court beyond November 13, 2008."
>
>
>
> I have the client calling the schools again to get more complete
printouts
> showing receipts for tuition/fees. But this deadline is in 3
days! I have
> never had to petition the Tax Ccourt and I'm not sure I even need
to.
>
>
>
> Can anyone offer me some advice here how to proceed with this? Do I
> download a form from the Tax Court and file it? Do I even need
to? I would
> appreciate some quick guidance.
>
>
>
> thank you in advance,
>
> Donna
>
>
>
>
>
> Donna J. Perrone, EA
>
> East Haven, CT
>
> 203-469-4939
>
> 203-468-2038 fax
>
>
>
>
>
> IRS Circular 230 Disclosure: Unless expressly stated otherwise, any
tax
> advice contained herein, including attachments and enclosures, is
not
> intended or written to be used, and may not be used, for the
purpose of (1)
> avoiding tax-related penalties under the Internal Revenue Code or
applicable
> state or local tax law provisions, or (2) promoting, marketing or
> recommending to another party any tax-related matters addressed
herein.
>

__._,_.___

IRS Circular 230 Disclosure: Unless expressly stated otherwise in this transmission, any tax advice contained herein, forwarded with or attached to this message was not and is not intended to be used, nor may it be relied upon or used, by any taxpayer for the purpose of (1) the avoidance of any tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions, or (2) promoting, marketing or recommending to another party any tax transaction or tax-related matters that may be addressed herein.

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