Originally Posted by
itsmymoney
Michael,
You obviously know your way around such things. I have not been so lucky...
I am currently faced with a CP15 'pay us 5k' letter for a 'frivolous' return. I have about 8 days to respond. I filed a 2013 sheeple return and was paid. I then filed a 1040x amended return with a LM deduction. I believe I should have started a LM deduction with the 2014 return of which the LM deduction was honored; however I'm sure I will see a CP2000 at some point for 'unpaid taxes'.
Their initial 3176C letter ('we have identified your return as frivolous') I responded to 3 months ago with a denial of any liability and simultaneously rescinded that amended return (the 3176C language states I may rescind and send a 'corrected' return). However, the 'corrected' return is actually the original return already refunded. They recently assessed the 5k penalty anyway, I presume because I was ALREADY paid a refund from the original 2013 return. They will do anything to steal your money.
There is not much recourse but I thought someone might have suggestions as to my response. I was rushed into the 3176C response due to a family illness and I may have lost my 'right of inquiry' window to stall them. The CP15 is an actual 'invoice' from their MFT 55 'penalty' module in the IMF system. Insidious, but there it is. However, I believe there is a 'mistake' statute that may come into play here. Doug555 mentioned it somewhere in this forum and I need to find it to see if it might apply - D555 if you have that statute handy please forward if possible.
Any other thoughts are welcome.
Thanks.