# Got a letter from the IRS, what to do next?



## P123 (Dec 2, 2015)

Hi everybody,

Last year (Mar 2015) I filed the Streamlined procedure. In March of this year (2016) I was preparing my return information and getting info together when I noticed that there was an error on my Streamlined submission.

The error is that one account was not reported for 2012 and thus no 8938 for that year. The account in question was, however, reported in full on my 2013 1040 including the FBAR and 8938.

Essentially there was miscommunication between my CPA and I about the accounts opening and closing dates. 

I sent in an amended return at the end of March with a new 8938 and this past week I got a letter from the IRS saying they are "working on my account and I don't need to take any further action now, however, they need an additional 45 days to let me know what action they will take on my account."

Very clear...:juggle: 

Can anyone advise me on whether or not a letter like this is standard when sending in an amended return? 

Thanks


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## iota2014 (Jul 30, 2015)

At a guess - maybe the letter was automatically generated by the processing software to forestall the three-year statute of limitations coming into play?


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## BBCWatcher (Dec 28, 2012)

That hypothesis is not correct. The shortest possible statute of limitations (three years) would have started in March, 2015, and end, at the earliest, in March, 2018. The IRS has _plenty_ of time.

I would take the letter at face value.


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## iota2014 (Jul 30, 2015)

BBCWatcher said:


> That hypothesis is not correct. The shortest possible statute of limitations (three years) would have started in March, 2015, and end, at the earliest, in March, 2018. The IRS has _plenty_ of time.


The automated system processing amended returns doesn't necessarily know that this amendment is for a return that was filed late under the Streamlined Procedures. 

The OP files the amended return in 2016. The automatic processing system checks the tax year (2012) and due date(2013), and adds 3 years, coming out with 2016 as the year in which the statute of limitations would come into force for a 2012 return. Therefore, a "hold" letter is generated in order to establish the fact that the IRS has indeed begun investigating the return before the statute of limitations kicks in. 

Is my guess. It may be wrong but it's reasonable.


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## Bevdeforges (Nov 16, 2007)

Actually, the key phrase (IMO) is the one about how you don't need to take any action at this point. When and if they need or want you to do something, they'll let you know.
Cheers,
Bev


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## P123 (Dec 2, 2015)

Thank you all for your responses. I was just trying to establish whether or not a letter is normally sent out when you amend a return?


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## BBCWatcher (Dec 28, 2012)

iota2014 said:


> Therefore, a "hold" letter is generated in order to establish the fact that the IRS has indeed begun investigating the return before the statute of limitations kicks in.


Nope. A "hold" letter doesn't extend the statute of limitations. Only the filer can voluntarily agree to extend that. (Sometimes that's a prudent thing to do, but that's a topic for another day.)


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## AKIF.M (May 24, 2016)

System generated letter basically stating that IRS does not have enough personnel to carry out the work load and it will take longer than usual.


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