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.
