Appeal of proposed deficiency return Preparer Fraud

APPEAL OF PROPOSED DEFICIENCY

RELIEF REQUESTED

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  Filing history of the year or years at issue
  
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  Brief discussion of the issues that gave rise to the liability
  
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  Discussion of the IRS notice or correspondence that triggered this memo and who in the IRS issued it (Examination, Appeals, Collections). Include a copy.
  
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  Discussion of whether the client or the Clinic filed something to give rise to this memo, (e.g. who filed or entered an appearance in Tax Court, the date of Counsel’s Answer, etc.) and whether the Clinic entered an entry of appearance and the date of Counsel’s Answer.
  
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  Discussion of where current jurisdiction lies (Appeals, Counsel or Collections or Taxpayer Advocate) and what transpired at lower level of IRS.
  

Ms. Adams hired Shady Tax Filing Service of Norcross, GA to prepare and file her tax return for Tax Year 2009. (See Exhibit xx which is a transcript of the tax return filed for 2009.) The IRS received a return on February 18, 2010 and issued a refund of $9,830 on March 25, 2010. (See Exhibit xx which is a copy of the account transcript for 2009.) Ms. Adams received a CP 2000 dated June 19, 2012, with a proposed deficiency of $12,341. (See Exhibit xx which is a copy of the CP 2000.) She failed to respond. On November 1, 2012, the IRS issued a Notice of Deficiency to Ms. Adams. (See Exhibit xx which is a copy of the Notice of Deficiency.) She then contacted the Philip C. Cook Low-Income Taxpayer Clinic for assistance with the matter. (See Exhibit xx which is a Power of Attorney Form 2848). Ms. Adams timely filed a petition with the U.S. Tax Court on December 16, 2012. (See Exhibit xx which are copies of the petition and IRS Counsel’s answer.) The case is pending assignment to an Appeals Officer in the Atlanta Office.

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  A correct and signed return for the year at issue.
  
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    Point out that this return shows what the tax liability/refund should be.
    
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  IRS Forms 14157 and 14157-A.
  

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  Specify which claims on the return are true and are false.
  
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    What was the taxpayer’s actual employment, income, deductions, and credits? (Use Wage & Income Transcripts as evidence.)
    
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      Contrast this income with the income reported on the return.
      
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    What was the taxpayer’s actual address or bank account information? (Look to Accurint for address information.)
    
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      Contrast this address with the address reported on the return or the direct deposit account.
      
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    Did the taxpayer have any children or dependents? (Use tax returns from other years as evidence.)
    
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  Include a discussion of what steps have been taken to contact the tax preparer. If the tax preparer is no longer operating or you are unable to contact the business, document this fact in the memo.
  
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  Demonstrate that the taxpayer did not receive the full refund. Such as,
  
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    Point out that the refund check (or prepaid card) was not mailed to the taxpayer’s address.
    
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    Provide bank statements showing that the refund was not deposited in the taxpayer’s accounts.
    
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  Have supporting documents and, whenever it is referred to, be sure that it is described, e.g. “Attached as Exhibit X is a copy of the lease that the taxpayer entered into showing that the taxpayer lived at the premises during the period of ____ to ____.”
  

Ms. Adams is a full-time custodian at Central Library in Norcross, GA. (See Exhibit xx which are two months of pay stubs from Central Library with an average of 38 hours worked per week.) She has worked at the library for the past 13 years, she has neither had another job nor another source of income. (See Exhibit xx which are copies of Wage & Income transcripts from 2008-2011 showing no income other than Central Library; see also Exhibit xx which is a signed statement from Ms. Adams.) In 2009, Ms. Adams received $24,112 dollars in wages from Central Library, with $650 in withholdings. (See Exhibit xx which is a Wage & Income transcript for 2009.)