IRS Master File and Tax Transcript Services

Some taxpayers have a sense that the IRS collects and maintains exhaustive records concerning the tax filings, informational returns, and other documents submitted by the taxpayer to the government agency. While taxpayers may have a general sense that these records are available somewhere at the IRS, they often lack the practical experience needed to track down and obtain a tax transcript. Even if the individual taxpayer is able to obtain the documents or information contained in an account transcript, tax transcript,  TXMOD Series transcripts it is highly likely that he or she will need assistance interpreting and applying the document to the specific matter. Ted Kleinman is a CPA who can help taxpayers address an array of issues including individual tax returns, offshore account disclosure, and IRS collections actions. Ted can also use the information found in a taxpayer’s master file to perform due diligence regarding a financial transaction by a business or individual. To discuss how Ted can assist with obtaining, interpreting, and applying your tax transcript data to your matter, schedule an appointment or contact Ted and U.S. Tax Help today.

Why Are Tax Transcripts Useful in Resolving IRS and Other Disputes?

Today’s world is one that is driven and guided by the information stored and presented by computers and electronic devices. An array of electronic databases stores everything from financial information to shopping preferences. Despite some who cast aspersions at the operations of the IRS, it is also a modern governmental agency that relies on digitized databases. As such, nearly all information that is provided by the taxpayer and collected by the IRS is entered into a comprehensive database known as the Integrated Data Retrieval System (IDRS).

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The IDRS is a system that allows for virtually instantaneous access to taxpayer data. Authorized IRS employees can access data from the IDRS system. Tax practitioners who are authorized to represent a taxpayer can request the IRS Practitioner Priority Service (PPS) to provide certain information. However, the responsiveness and willingness to work with a taxpayer varies greatly from PPS employee to employee. The ability to clearly and repeatedly articulate your concerns and requests (including an understanding of IRS command codes) is essential since it may take numerous requests and representatives to obtain the entirety of the information you seek. Some of the requests you may need to articulate to the representative may include the following command codes and transcripts:

  • ENMOD command code – ENMOD is a command that is necessary when the taxpayer seeks to confirm the status of an entity, its return filing requirements, and can cull entity information relating to a specific taxpayer. Transcripts obtained via ENMOD often require significant and tedious decoding work.
  • Account transcript – An account transcript is the report that would probably be the most intelligible to a tax layperson. This transcript will contain information about all tax returns submitted by the taxpayer. It will also contain information relating to examination indicators, assessments, penalties, and interest.
  • Tax return transcript – A tax return transcript is useful when the taxpayer needs to obtain a copy of a tax return as it was originally filed. Generally, a tax transcript can be obtained by filing Form 4506-T or having an authorized representative call IRS PPS. It will typically take six weeks to obtain this transcript.
  • Civil penalty module – Depending on the tax concerns, information from the IRS civil penalty module may be useful. This transcript will contain information concerning any civil penalties assessed against the taxpayer. In addition, a Penalty and Interest Explanation (PINEX) can often provide additional insight into the actions taken by the IRS.

Whether you are facing tax penalties, and IRS audit, or are looking to perform due diligence in preparation of a transaction, the information contained in tax transcripts can assist you in proceeding strategically.

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IRS Tax Collections Problems? Work with a Strategic U.S. CPA

CPA Ted Kleinman can assist you with obtaining the information contained in relevant tax transcripts and interpreting the results for a cost of $475. This approach would enable you to see what information the IRS has on you and often serves as the basis for developing a strategy to bring you back into tax compliance. Let me know if you are interested in this limited engagement. If so, Ted can send you an E-invoice for the retainer and form to complete. For more information, contact U.S. Tax Help at l (541) 923-0903 or contact the firm online today.

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