Lately, a bunch of my clients have been getting letter 4087 from the IRS from the streamlined program. The letters are saying my clients did not submit signed tax returns, or signed FBAR forms or the signed questionnaire. I know that in all cases where my clients are getting these letters, all the requested documents were properly submitted to the IRS. I put together each package and made sure that all documents were included in the package.
Another thing I noticed on this is that in each case where a client got the letter 4087, there was an ITIN application for a family member, be it a spouse or a child. In all my streamlined cases, over 75% of cases where the client applied for ITIN numbers for a family member, they received a letter 4087 saying that returns or FBARS were missing. In over 75% of cases where there was no ITIN application, the returns were assessed and the case resolved in a fairly quick manner.
How have others been dealing with this situation and does anyone have a similar results from the streamlined processes?
Contact the Tax Lawyers
Read more at: Tax Times blog