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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12691
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I recently got a summons for financial records for a

Customer Question

Hi I recently got a summons for financial records for a business, the question is we paid the amount owed in the period they want the records for we paid the amount after we received the summons, do we still need to show up with records for the summons for IRS or is it cancelled because there is no amount due now for those periods?
JA: The Expert will know how to help. Is there anything else the Expert should be aware of?
Customer: no
Submitted: 1 month ago.
Category: Tax
Expert:  Lane replied 1 month ago.

Hi My name’s Lane - I hold a law degree (J.D.), with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice 1986.

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I'm so sorry, but not having an amount due (although that DOES, if the IRS deems the return to be accurate, eliminate any non-filing or non-payment penalties) doesn't simply make any audit or information request go away.

Customer: replied 1 month ago.
We had a lien placed and we paid the lien amount off, for the amount she sent a summons before we paid the amount off, so I was wondering now if that would go away because we paid it off, So all penalties and fees were in the amount of the liens we paid off for the quarters they summoned records for
Expert:  Lane replied 1 month ago.

The summons is still in the system. And won't be removed until the R.O. removes.

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I would call and be sure. I've seen this happen many times cause problems, 9for two reasons).

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(1) The request is still in the system and the R.O. (Revenue Officer on the case) didn't remove the outstanding request, and (2) even though the liens are no linger valid, they still exist in the public record.

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I would (1) call the R.O. to be sure that the info request has been removed and (2) file the 12277 (https://www.irs.gov/pub/irs-pdf/f12277.pdf) to request that the lien be removed from the public record.

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Customer: replied 1 month ago.
Thank You so much that is what I was trying to figure if a summons can be removed if an amount was paid!!!
Expert:  Lane replied 1 month ago.

You're very welcome ... Your positive rating … (by using those the stars or faces on your screen, and then clicking “submit”) …is thanks enough!

That's the only way I'll be compensated by JustAnswer for the work here

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Thank you,

Lane

Customer: replied 1 month ago.
i know I am understanding this I can contact the R.O. And ask for the summons to be removed so we don't have to go to it? I just want to make sure before I call and cause more issues!!
Expert:  Lane replied 1 month ago.

Yes, and in fact this is best practice. Gets everyone on the same page.

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(It's seen as a show of good faith on your part, and you make sure that there's not an ongoing audit on the return in question)

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Lets you close out the issue.

Customer: replied 1 month ago.
It's not an Audit it was because we owed her he amount we filed the quarterly returns but did not pay the amount owed! So it was a matter of quarterlies filed but no taxes paid in that quarterly time frame!!
Expert:  Lane replied 1 month ago.

Any time taxes aren't paid, the return(s) become fodder for audit. Again, I'm giving you the best practice here. You don't want a request to go unanswered.

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I've been doing this for 30 years and can tell you from experience, that taxpayers doing something that they THINK/HOPE IRS wants (here, you're assuming that the unpaid payroll taxes were the ONLY reason for the request) and not specifically fulfilling the request has come back to haunt others.

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You have an outstanding request for information that hasn't been fulfilled. Unless you have a crystal ball you DON'T know everything behind the request.

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Again the best practice is to "close the loop," by being sure, and not leaving this request hanging out there

Expert:  Lane replied 1 month ago.
Hi - Did you contact the R.O?