On WebCPA today, it was reported the IRS is deciding on whether or not to make “soft notices” a more formal part of its efforts to solicit voluntary compliance from taxpayers. A soft notice is a statement issued on Form CP 2057 issued by the IRS to let a taxpayer know they should check their tax return for mistakes. At JK Harris and Company, we encourage you to take these soft notices seriously, since reviewing this notice may help prevent bigger tax problems down the road. If you address the notice, review your return and correct any errors you find by filing an amended tax return, you may just save yourself a lot of trouble – or tax debt – in the future. Read the full article below:
The Internal Revenue Service is trying to decide whether it should make so-called “soft notices” a permanent part of its automated program for encouraging more voluntary compliance. A soft notice is a written notice on Form CP 2057, which requires no action on a taxpayer’s part but encourages them to check their return for errors.
A new TIGTA report recommended that the IRS should improve its plan to determine whether the soft notices should be used permanently in the IRS’s Automated Under-reporter Program. The TIGTA audit was initiated because the IRS is involved in a multi-year initiative to determine if soft notices can address under-reporting discrepancies.
The AUR Program identifies income discrepancies between types of information received by the IRS: information provided by taxpayers and related information provided by employers and financial institutions.
Posted by JK Harris