Unannounced IRS visit

[NECPA in NEBRASKA]

One of my client's called me late this afternoon and was pretty freaked out. She was out of her office for awhile and came back to a notice that an IRS agent had been there and would like a call back Monday between 9 and 3. She hasn't received any letters from them and doesn't owe anything. She forgot to take the card with her, so she doesn't remember the name correctly and is pretty sure that it was a revenue agent, not a revenue officer or special agent. She called back and is pretty sure that the voicemail said it she was an agent. She's pretty upset that she has to wait until Monday to find out what is going on. I just told her that when she calls her back to see what the visit pertained to, which tax period and what tax form is involved. Then I told her to tell the agent she would have to get the information and contact her CPA. I can't get a POA unless I know what it is about. Did I forget anything? I hope that it's nothing big, but I can't think what else would prompt a visit. 

If this is an audit, it will probably be like a full time job for me and I have no place to set up in my home for an auditor. My downstairs bathroom is a laundry room with two cat boxes. I'll be stewing all weekend.

[DevM]

Was there any payroll form (941) not filed?  Or they may be missing. I have had IRS Agents visit client for 941. Once the forms were faxed everything was fine.

[NECPA in NEBRASKA]

Maybe that is it. They only have one employee and he  just gets paid once a year normally.

[Jack from Ohio]

IRS agents only visit corporate clients for unfiled payroll forms, or unpaid payroll taxes.  Everyone is to make monthly payments since 2013, and that is probably the reason for the visit.

Tell her to under no circumstances, allow the agent inside her home.  Tell her to give NO information of any kind to the agent.  Stress this very heavy.  Those agents are trained to try to extract information from the taxpayers.

[NECPA in NEBRASKA]

Thanks! Maybe we can get around another visit by faxing anything that she may be looking for. It would be nice if they would send a letter. They just started payroll in 2013, so maybe they are looking for prior returns. 

[Richcpaman]

This isn't about her *1* employee and missing 941/940 etc.

Your client probably owes back taxes from before that.  If your client is a new client, most likely this is what is going on.

She comes back to her office, and finds a card on her door from the IRS, but does not have this card when she calls you?  Hmmmn.

Rich

[JohnH]

That's what I was thinking.  Client has a card from IRS and has the presence of mind to call the tax preparer, but just happpens to "leave the card at the office".  I'd be inclined to tell them to not worry too much about the visit since they didn't seem concerned enough to communicate to me all the relevant info.  

I suspect the client knows more about the reasons for the visit than they are letting on. It will become crystal clear on Monday.

Edited June 5, 2015 by JohnH

[Max W]

Under no circumstances should the client call the IRS agent/RO or whatever.  Most clients feel intimidated and will

answer any questions asked of them.

NECPA, despite saying the contrary, can get a POA that covers most possibilities.

Form 1040 going back at least 10 years (we use 20).

941 all quarters going back 10 years.

Civil Penalties - same as 941.

If the client is a corp, then you would want the same, so maybe two POA's.

 

 

[Lee B]

Several months ago, I had a payroll client receive an unannounced visit from an IRS agent regarding their 941s.

They had been filing and paying their 941s late. 

[NECPA in NEBRASKA]

The visit was because the seasonal employer box was not being checked and they had not filed 941's for all four quarters in 2013 when they began payroll. That made my week.

[Richcpaman]

OMG.

I have clients that owe thousands, even tens of thousands, and we can't get a phone call...

Rich

 

[JohnH]

Glad to hear it was something simple.