Accounting Question

Assignment: Draft a Protest Letter.

Please see “TEAM ASSIGNMENT 3 PROTEST TO APPEALS v(101521)-1” document for FACTS.

Form 4549-E
(Rev. 12-2004)
Department of the Treasury-Internal Revenue Service
Income Tax Discrepancy Adjustments
Name and Address of Taxpayer
Robert Richards
1234 West 80th Road
Miami, FL 33133
SS or EI Number
1. Adjustments to Income
201912
1
of
2
Return Form No.:
333-44-5555
Person with whom
examination
changes were
discussed.
Period End
Page
1040
Name and Title:
Alejandro Menendez, CPA
POA
Period End
Period End
243,950.00
a. Business Bad Debt
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
m.
n.
o.
p.
2. Total Adjustments
3. Taxable Income Per Return or as Previously Adjusted
243,950.00
4. Corrected Taxable Income
Tax Method
Filing Status
5. Tax
348,000.00
104,050.00
93,290.00
6. Additional Taxes / Alternative Minimum Tax
7. Corrected Tax Liability
8. Less
93,290.00
a.
b.
c.
d.
Credits
93,290.00
9. Balance (Line 7 less total of Lines 8a thru 8d)
10. Plus
Other
Taxes
a.
b.
c.
d.
11. Total Corrected Tax Liability (Line 9 plus Lines 10a thru 10d)
93,290.00
12. Total Tax Shown on Return or as Previously Adjusted
56,872.00
13. Adjustments to: a. Special Fuels Credit
b.
c.
14. Deficiency-Increase in Tax or (Overassessment Decrease in Tax)
(Line 11 less 12 adjusted by 13a thru 13c)
36,418.00
15. Adjustments to Prepayment Credits
16. Balance Due or (Overpayment) (Line 14 adjusted by Line 15) (Excluding
interest and penalties)
36,418.00
The Internal Revenue Service has agreements with state tax agencies under which information about federal tax, including increases or decreases, is
exchanged with the states. If this change affects the amount of your state income tax, you should amend your state return by filing the necessary
forms.
You may be subject to backup withholding if you underreport your interest, dividend, or patronage dividend, or patronage dividend income you earned
and do not pay the required tax. The IRS may order backup withholding (withholding of a percentage of your dividend and/or interest payments) if the
tax remains unpaid after it has been assessed and four notices have been issued to you over a 120-day period.
Catalog Number 13383E
publish.no.irs.gov
Form 4549-E
Form 4549-E
(Rev. 12-2004)
Department of the Treasury-Internal Revenue Service
Income Tax Discrepancy Adjustments
Name and Address of Taxpayer
Robert Richards
1234 West 80th Road
Miami, FL 33133
2
of
SS or EI Number
Return Form No.:
333-44-5555
1040
Person with whom
examination
changes were
discussed.
Period End
17. Penalties
Page
Name and Title:
Alejandro Menendez, CPA
CPA
201912
a. 6662(b)(2) Substantial Understatement of Tax
2
Period End
Period End
7,284.00
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
m.
n.
18. Total Penalties
7,284.00
Underreporter attributable to negligence: (1981 – 1987) A tax addition of
50 percent of the interest due on underpayment will accrue until paid or
assessment.
Underreporter attributable to fraud:: (1981 – 1987)
A tax addition of 50 percent of the interest due on underpayment
will accrue until paid or assessed.
Underreporter attributable to Tax Motivated Transactions TMT interest
will accrue and be assessed at 120% of underpayment rate in
accordance with IRC 6621(c)
19. Summary of Taxes, Penalties and Interest:
a. Balance due or Overpayment Taxes – Line 16, Page 1
b. Penalties (Line 18, Page 2) – computed to
c. Interest (IRC § 6601) – computed to 12/31/2019
d. TMT Interest – computed
on TMT underpayment
e. Amount due or refund (sum of Lines a, b, c and d)
36,418.00
7,284.00
1,679.00
0.00
45,381.00
Other Information:
Examiner’s Signature:
Employee ID:
Office:
Date:
Cambridge Williams III, IRA
1234568
Miami
09/15/2021
Consent to Assessment and Collection- I do not wish to exercise my appeal rights with the Internal Revenue Service or to contest in the United States
Tax Court the findings in this report. Therefore, I give my consent to the immediate assessment and collection of any increase in tax and penalties, and
accept any decrease in tax and penalties shown above, plus additional interest as provided by law. It is understood that this report is subject to
acceptance by the Area Director, Area Manager or Director of Field Operations.
PLEASE NOTE: If a joint return was filed. BOTH taxpayers must sign
Signature of Taxpayer
By:
Catalog Number 13383E
Date:
Signature of Taxpayer
Date:
Title:
Date:
publish.no.irs.gov
Form 4549-E
Internal Revenue Service
Date: August 15: 2021
Robert Richards
1234 West 80″‘ Real
Miami, FL 33131
Department of the Treasury
Taxpayer Identification Number: 333-445555 Form: 1040
Person to Contact: Williams
Contact Telephone Number: ——————-Employee Identification Number.
Last Date to Respond to This Letter September 15, 2021
Tax Year Ended: 201912
We have enclosed an examination report showing proposed changes to your tax for the period(s) shown above.
Please read the report and tell us whether you agree or disagree with the changes by the date shown above. (This
report may not reflect the results of later examinations of partnerships, “S” Corporations, trusts, etc., in which you
may have an interest. Changes to those accounts could also affect your tax).
If you agree with the proposed changes
1. Sign and date the enclosed agreement form. If you filed a joint return, both taxpayers must sign the form.
2. Return the signed agreement form to us.
3. Enclose payment for the tax, interest, and penalties due. Make your check or money order payable to the
United States Treasury. You can call the person identified above to determine the total amount due as of
the date you intend to make payment.
4. After we receive your signed agreement form we will close the case.
If you pay the full amount due now, you will limit the amount of interest and penalties charged to your account If you
agree with our findings, but can only pay part of the bill: please call the person identified above to discuss different
payment options. You can write to us or visit your nearest IRS office to explain the circumstances. We may ask you
to complete a collection information statement to determine your payment options, such as paying in installments.
You can also write to us or visit your nearest IRS office to explain your circumstances. If you do not enclose
payment for the additional tax: interest: and any penalties, we will bill you for the unpaid amounts._
If you area “C” Corporation: Section 6621© of the Internal Revenue Code provides that that an interest rate 2%
higher than the standard rate of interest will be charged on deficiencies of $100,000 or more.
IF YOU DO NOT AGREE with the proposed changes ….
1. You may request a meeting or telephone conference with the supervisor of the person identified in the
heading of this letter. If you still do not agree after the meeting or telephone conference, you can:
2. Request a conference with our Appeals Office. If the total proposed change to tax is:
◼
$25,000 or less for each tax period, send us a letter requesting consideration by Appeals. Indicate
the issues you do not agree with and the reasons why you do not agree. If you do not want to write a
separate letter, you can complete the Statement of Disputed Issues at lie end of this letter and return It to
us.
Preparing a Written Protest to the Appeals Office
Source of this page is RIA checkpoint
Generally, an appeal is initiated by filing a written protest stating the reasons why the taxpayer does not agree with
the disputed adjustments. If the total amount of tax exceeds $25,000, a formal protest is required. The outline of a
sample formal protest disagreeing with a proposed estate tax adjustment is as follows. See Appendix 22B for a
complete sample protest.
RE: Protest by Robert Richards
Social Security Number
Dear Mr. Richards:
I, Robert Richards, hereby protest the proposed adjustments income tax liability set forth in your 30-day letter dated
[date of 30-day letter], and the examination report transmitted therewith. The following information is submitted in
support of this protest.
(1) Conference.
The Estate wants to appeal the findings to the Estate Tax Attorney and requests a hearing before the Appeals Office.
(2) Name, address and daytime telephone number of taxpayer.
[Name and address of taxpayer]
[care of with name and address of attorney or accountant] [Telephone number]
Oct 15, 2021
Reply Refer to: 1484-6423
FYE 201812
Form 1040
Return filed April 15, 2020
(3) Itemized schedule of unagreed adjustments.
(4) Statement of facts.
(5) Statement of law.
(6) Summary of position.
Under penalties of perjury, I declare that I examined the facts stated in this protest, including any accompanying
documents, and, to the best of my knowledge and belief, they are true, correct, and complete.
[Alternatively, or additionally, the attorney or accountant may sign the protest using the following language:]
This protest was prepared by the undersigned. The undersigned does (or does not) know personally whether the
statements of fact contained in the protest [and any accompanying documents] are true and correct.