New client came to me because she has an IRS judgement for about $87,000 for 2021 tax year. That year she got a 1099-NEC from a hotel where she had cleaned room for $1820.41. She filed everything correctly. But the IRS read the 1099 as $182,041, and altered her tax return. I have a copy of the 1099 she received and it's clearly $1820.41. I don't have the original CP2000 notice or anything where they originally proposed changes, just a final notice/ collections letter. They have taken the 2024 and 2025 income tax refunds to pay it.
I'm prepared to write a letter explaining the mix up with a copy of the 1099 showing the mistake. Where would I send it(fax preferred but mailing address works too)? She had previously tried contacting the IRS herself but they couldn't fix it. Any other steps you'd recommend to resolve the issue?
How to contact the IRS on behalf of a client for an error on there 2021 tax records.
byu/jmcdon00 intax
Posted by jmcdon00
3 Comments
Have the Taxpayer sign 2848 for tax year 2021 (at minimum, consider 2020 and 2022).
Contact Practitioner Priority Service and ask for all 2021 Wage and Income transcripts and the account transcript.
If this is an Automated Underreporter unit case (almost certainly), the PPS representative can transfer you directly to AUR. You may reach a rep on that line who would be willing and able to make the correction in the call.
You’ll probably have to fax the 2028 both times, and the PPS representative should file it to the CAF unit for processing.
If you get a signed 8821 you can call the IRS Tax Pro hotline to discuss this with them on your clients behalf.
Go here. https://www.irs.gov/individuals/understanding-your-cp2000-series-notice
Do you know which location the CP came from?
The process you need is AUR Reconsideration. A formal letter asking to reopen the case with a copy of the 1099. Should take care of this.
The statute is probably over, but any unpaid tax can be reduced, and payments within two years can be refunded.
Call AUR 800-829-8310 with a POA. Or have the client call. Or if you have POA, call PPS and they can transfer you into AUR.
Edit to add, after assessment this cannot be fixed over the phone. A written request for Reconsideration is needed. Especially statute cases.