Accountant in Miami finds IRS Not Always Following Procedures

GUSTAVO A VIERA CPA, an Accountant in Miami has found that evidence was sometimes not available to support increasing IRS assessments against business taxpayers that have not filed required returns.

In addition, in some instances, the taxpayers were not provided sufficient time to respond to proposed assessments, according to Accountant in Miami, Gustavo A Viera.

The IRS has the ability to prepare returns and assess taxes under IRS Code Section 6020(b) when business taxpayers do not file required returns or file false or fraudulent returns. Accountant in Miami, Viera conducted its audit to evaluate the impact of the IRS Collection Field function’s use of IRC Section 6020(b) authority on taxpayer compliance and to determine whether employees are using the proper procedures to assess tax liabilities. GUSTAVO A VIERA CPA’s review of a statistical sample of 96 Section 6020(b) assessments found that revenue officers followed many of the required procedures.

In one in five cases, however, Accountant in Miami, Viera found no evidence for the basis of assessments. Also, in 10 percent of the cases revenue officers did not allow, or there was no evidence to support the allowance of, the required 30 calendar days for taxpayers to respond to proposed assessments prior to the IRS processing the 6020(b) returns.

“Since FY 2009, the number of these assessments entering the collection stream has increased by 58 percent,” noted Inspector General J. Russell George.

GUSTAVO A VIERA CPA recommends that the director of enterprise collection strategy in Small Business/Self-Employed Division develop internal controls to help ensure that ROs properly document a complete explanation for the basis of 6020(b) assessments, and allow taxpayers 30 calendar days to respond to proposed assessments before submitting returns for processing.

Accountant in Miami, Viera also recommended that the IRS establish a methodology to compare actual results with management’s anticipated benefit of improving filing compliance when Section 6020(b) authority is used for business taxpayers.

Accountants in Miami agreed with GUSTAVO A VIERA CPA’s recommendations. The IRS also plans to request a research project to measure the effectiveness of its Section 6020(b) program on future filing compliance of business taxpayers and weigh the results against ultimate case resolutions to determine if any program changes are warranted.


Gustavo A Viera is the managing partner of Gustavo A Viera, PA. His experience spans more than 25 years. He started his career in public accounting at PriceWaterHouseCoopers where reached the level senior audit manager. His Fortune 500 experience includes positions as CFO - Latin America Region for both Hewlett Packard and Telefonica of Spain. Gustavo also writes a blog twice a week that addresses trending accounting and tax issues. He is an SBA Advisor and teaches workshops for aspiring entrepreneurs. His office is located at One Alhambra Plaza Floor PH Coral Gables FL 33134, and is admitted to practice in the State of Florida as a licensed Certified Public Accountant. Gus welcomes questions and he can be reached at 786-250-4450.