why would IRS claim on CPI 2000 that line 20b of my 2015 year 1040 form should be $27323 instead of the $17326 I show?
IRS claims "Securities" should be 11,133 shown on return is $0 while I show a taxable IRA distribution of $13,572 on line 15b and a loss of -$11,194 on line 17 of both on form 1040 for 2015 year?
IRS above numbers add up to net difference of $21230.
IRS claims claims my medical expense on Schedule A Line 4 should be $20,618 where I show $22,202 for a difference of -$1,585 that yields net difference of $$1,585 resulting in taxable income of taxable income of $22,715 on LINE 4?
IRS says Line 43 of Form 1040 should be $41,390 instead of $18,675 for a difference of $22,725?
IRS says line 44 of 1040 form should be $5284 instead of $1879?
IRS say Residential energy credit is correct @ reported $35?
IRS says Total Tax , Line 63 should be $5249 instead reported $1844?
IRS claims I did not report Charles Schwab &Co.INC distribution of $11,133 while I actually reported on line 15b of 1040 the distribution amount of $13,572 from Charles Schwab?
The IRS claims I showed Social Security benefits of $0. On form 1040 line 20a I show $33,912?
You need to contact the IRS as soon as you can and provide them with the proper documentation. The IRS will retract their position if you show sufficient evidence that they are incorrect. You don't necessarily need a local CPA to help you communicate with the IRS, but it certainly helps. If you do get a local CPA, fill out a Form 2848 (Power of Attorney) giving them the ability to speak on your behalf in front of the IRS. The key is to communicate with the IRS as soon as possible and be ready to give them your documentation showing your position. You can reach the IRS at 1-800-829-1040.
The IRS "AUR," sent us a CP2000 for 2016 in November, 2018. It says we reported $46,xxx in retirement income for 2016 AND that we reported "$0.00" in retirement income for 2016 - from the same ten payers. It says that we should have reported: 1) $46,xxx in retirement income; should have reported $43,xxx, in retirement income; and should have reported $89,xxx in retirement income - all from the same ten payers - all in the same CP2000. As it happens, our 1099-Rs add up to $46,xxx, and that is what we reported on page 1 of our 1040, so we made no error whatsoever. The CP2000 numbers, were they true, lead to several possible numbers - three different numbers of unreported retirement income ($43K; $46K; $89K), one overreporting of retirement income (by $3K), and one instance (AKA "reality") where reported the correct amount of retirement income; yet, the CP2000 seeks a single number for tax, interest and penalties - $19,xxx.
Despite repeated very clear notices over nearly a year to the IRS of its obvious errors, the IRS has failed to send us any written notice that it is backing off ( a "no change letter"). It does send correspondence after correspondence saying it needs more time
Taxpayer Advocate has done nothing, and that office apparently has no real power.
The Arbitration Office refuses to do anything.
We have requested arbitration in writing twice. We have been ignored.
This is a scam, using the U.S. Mails.
Informally, I am repeatedly told (beyond repeated "sorry") that budget cuts do not allow IRS to do its job and the computers issue CP2000s AND Statutory Deficiency Notices 9pay or sue letters) autonomously - no human oversight. Obviously, there are software problems. IRS is not worthy of trust. Someone should be held responsible.
TAHAWK, the problem that you describe can result from reporting retirement income on the wrong line of 2016 Form 1040 or 1040A. These forms have two lines for reporting retirement income, one for income from IRAs and the other for income from all other types of retirement accounts. Incorrectly marking (or not marking) the IRA/SEP/SIMPLE box on TurboTax's 1099-R form can cause the income to appear on the opposite line from the one that it should be on. When that happens, the automated system at the IRS treats as unreported whatever amount is missing from the correct line, despite this amount being present on the other line, and the IRS treats the amount that should not have been on a particular line as simply other reportable income that the IRS didn't know about.
Check your Form 1040 lines 15 and 16 or Form 1040A lines 11 and 12 to see that taxable amount of income from IRAs is appearing only on line 15b or 11b and that the taxable amount of income from other types of retirement accounts is appearing only on line 16b or 12b. If any of the retirement income is on the wrong line, that's what you need to explain that to the IRS. The information that you've indicated is on the CP2000 suggests that Forms 1099-R showing a total of $43,xxx of retirement income might have been reported on the wrong line of Form 1040 or 1040A.
One would hope, but I have five letters from people at IRS, two with the title "Director," saying the three wildly contradictory CP2000s that we received for 2016 are wrong - they even sent a tiny additional refund, but the computers grind on, forcing me to sue. They tell me they have no control over the computers ("autonomous") or the IRS lawyers. I even have a CP21B that says we owe nothing. But trial is set for October 26, 2020. To top it, the Statutory Notice of Deficiency was issued three years and 41 days after we mailed our 2016 return, so they can't assess. The SNOD stayed the three years AFTER it had run. Poor folks at IRS are stuck with "legacy" hardware and software and budget cut after budget cut. Then Congress and the Administration dumps the COVID payment distribution on them like an anchor thrown to someone drowning. This will not end well.