Stop the Machine! IRS Document Mismatches, Form 8949

For many taxpayers, filing season 2011 began on February 14 last year, when IRS was first capable of receiving most electronically filed returns for tax year 2010.  On February 13, 2012 one of my clients received the first 2010 CP-2000 (not-an-audit, but an attempt-to-resolve-a-discrepancy) proposing assessment of additional tax for 2010.  That’s an example of IRS automated efficiency.  In this case IRS was asking for $13,932 based on gross proceeds from the sale of stock for which IRS attributed no basis.  Clearly that makes no sense.  But, now that the inquiry has been issued, the challenge will be for over-burdened IRS staff in the service units to read and respond to our clarification that there is no tax owed and adjust their records accordingly.

http://www.forbes.com/sites/irswatch/2012/02/20/stop-the-machine-irs-document-mismatches-form-8949/