AICPA Raises Concerns over Faulty Letters Issued by IRS
The AICPA has issued a letter to Doug Shulman, Internal Revenue Service’s Commissioner highlighting the concerns regarding the extensive problem that is troubling a number of taxpayers. AICPA has raised concerns regarding the letters issued by IRS to the taxpayers who file foreign trust forms.
The letter written by chair Patricia Thompson, AICPA Tax Executive, AICPA has requested the Internal Revenue Service to carry out investigations in order to identify the very source of its processing related problem that will further ensure that the IRS does not send such faulty letters. In addition to this, AICPA has also suggested that the Internal Revenue Service should also think of informing the taxpayers that these faulty letters require no response. This will ensure that taxpayers don’t spend a lot of their expense and time in making sure that their taxation report prepares provide a response to these faulty letters.
In its letter AICPA mentioned that the letters are causing inconvenience to the taxpayers and as a result they (taxpayers) are incurring professional charges unnecessarily. The letter also stated that the practitioners should instead respond to the Internal Revenue Service and explain why the letters issued by them are faulty and further place a request for abating the penalties.
The taxpayers who submitted Form 3520, Received Certain Foreign Gifts and those who submitted Annual Return to Report Transactions with Foreign Trust, in 2010 and before have been receiving letters containing faulty conclusions.
The American Institute of CPAs provided explanation on as many as 6 specific faults that the letters issued by IRS claim have been made by the taxpayers, which also includes submitting Form 3520 after a delay whereas in reality is was submitted timely.
The taxpayers who are getting affected belong to cities including New York, California, Washington, Massachusetts and Florida. Even the taxpayers hailing from Canada are getting faulty letters from the IRS.
The American Institute of CPAs is a nationally recognized professional entity of public charted accountants who have acquired appropriate accountancy certifications. The Institute consists of as many as 377,000 members. The AICPA’s members offer services to SMBs, individuals, not-for profit entities and other big companies of America.