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NYA Stakeholder Liaison Field IMRS Monthly Discussion Call Summary May 17, 2017

Topics Discussed:
Announcement
New Stakeholder Liaison Field Area Manager for the New York Area
(New York, Massachusetts and New Hampshire)
Melaney Partner
999 N Capitol St NE
Washington, DC 20003-3903
Bus: 202-317-8662
Mobile: 615-347-8145
E-mail: melaney.partner@irs.gov
Issues Discussed:
Inconsistent treatment of T/Ps receiving Letter 5747
• When a T/P receives Letter 5747 they are required to visit a TAC
to establish their identity. IRM 25.25.6.3.2 provides an option for
T/Ps to mail in verification information to Austin, TX, instead of
going to the TAC. It appears that this option is not being granted
consistently by telephone assistors. Many elderly and otherwise
eligible T/Ps are being made to visit the TACs. Is anyone else
hearing this?
ID Theft victim subject to audit of fraudulent tax return
• Practitioner data breach victim contacted SL stating his client had
received an “audit letter” from the IRS for the fraudulent tax
return. (TP had not filed their return yet, and had to file a paper
return with form 14039 attached). TP had ignored the audit letter
since it had to do with the fraudulent tax return. Practitioner
stated he had a valid POA for the TP (tax year, tax form) and had
called the phone number on the IRS letter. The examiner said it
would take up to 180 days to process the form 14039 and there
was nothing they could do. Practitioner stated he does not want
this to go to Collections because the practitioner feels his client
has already been through enough due to the data breach.
(Practitioner had co-operated with IRS and sent a list of his
affected clients/SSNs to SL). SL researched in IRM and it
appears examiner should have done research when they were
informed this was an identity theft victim by the practitioner. Has
anyone else heard similar complaints?
Inability to contact Compliance (ROs & RAs) personnel
• Practitioner states there have been a number of times that my office
has tried to contact revenue officers and received a message that
their mailbox was full and we could not even leave a message. This
has happened with a number of different revenue officers working out
of different offices. This problem has hindered our ability to meet
deadlines and adequately assist our clients.
New Issues:
Question on 12C Letter
• Practitioner’s client received a 12C Letter and practitioner asks if this
could be ID Theft related. The IRS sends the 12C Letter when an
Individual Return is determined to be “Incomplete for Processing” and
additional information is required from the taxpayer. Each 12C Letter
is custom prepared specific for the information required to complete
processing of that specific taxpayer’s return. The taxpayer or
practitioner should enclose only the information requested and any
forms, schedules or other information required to support your entries
and a copy of the 12C letter.
Supplemental Information
IRS Audits
• An IRS audit is a review/examination of an organization’s or
individual’s accounts and financial information to ensure information
is reported correctly according to the tax laws and to verify the
reported amount of tax is correct. The primary purpose of this
communication is that should a taxpayer’s account be selected for
audit, they will notified by mail. The IRS will not initiate an audit by
telephone. This is a change over prior practice which included
notifying taxpayers by telephone.

Practitioner Data Breach

• The IRS is making it easier for a tax professional, business or payroll
service provider to report data loss by conducting outreach and
directing the victim to available resources. Tax professionals who
experience a data breach should quickly report the incident by
contacting their local IRS stakeholder liaison. For additional
information visit Data Theft Information for Tax Professionals. A
business or payroll service provider who has suffered a data loss
related to the W-2 scam should review Form W-2/SSN Data Theft:
Information for Businesses and Payroll Service Providers.

When a tax professional dies, what actions should be taken to close out their IRS authorities?

• A new web page was created on IRS.gov. The webpage provides
details on how to properly close out the PTIN, EIN, EFIN, CAF
number of a deceased tax professional, what to do with client
information still in possession of tax professional at time of death, and
how to properly notify the clients of the tax professionals passing.