Mark Schwanbeck Tax Prep Proactively Monitors Your Tax Information

Mark Schwanbeck Tax Preparation Gets Your Tax Transcripts Online

All clients of Mark Schwanbeck Tax Preparation are asked to sign the IRS Form 8821. This Form authorizes me to review your personal and confidential tax information on the IRS Tax Transcript system. Once I have your authorization, I monitor your tax records using an automated system.

What Does Form 8821 Authorize?

For the tax years specified on the Form, here is what you authorize:

  • Access to your tax return transcripts
  • Obtain your account information
  • View payments made to an account
  • Verify filing status for returns and refunds
  • Find tax notices for mistakes, penalties, adjustments
  • Send notices and letters to Mark Schwanbeck Tax Preparation at the same time the IRS sends them to you

Why Should I Sign Form 8821 and Participate in This Service?

During tax season, it is easy to throw away a letter that you didn’t know was needed for your tax return. Many of these letters are sent to the IRS and recorded on your tax record. Using the IRS online tax system, I can make sure the tax records you send me agree with what the IRS has recorded on your account. Here are several examples:

  • If you make estimated tax payments, I can verify that your amounts match the amounts recorded by the IRS.
  • Find when an employer files a corrected W-2 for which you have not been notified.
  • Alert you to 1099s filed by banks and investment companies that may have been lost in the mail or accidentally discarded.

By checking your tax records before I file your tax return, clients can be sure the most accurate information is used to prepare the return.

After your tax return is filed, I continue to monitor your IRS tax records. In 2020, we learned that the IRS computers generate letters and notices, but the staff mails them. Most taxpayers e-filed their tax returns on time and well before the tax filing deadline. However, due to service center closures and the massive workload when offices reopened, it was months before IRS letters and notices were mailed. Even when fully-staffed, once the IRS computers process tax returns and identifies an issue, it can take six weeks or longer before notices and letters are mailed to taxpayers.

I use an automated tax transcript surveillance system to monitor for codes and indicators on the taxpayer’s online tax records. Often when I am alerted to an issue, I work with my clients to respond and resolve issues before the IRS staff is aware there is a problem. In cases where the IRS has correctly identified a mistake, penalties and interest payments may be avoided since the issue is resolved before the penalty is assessed and the notice is mailed.

Proactive tax records monitoring provides Mark Schwanbeck Tax Preparation clients with peace of mind and is part of the service package. There are no additional costs for the service. However, there could be additional charges to prepare amended tax returns or respond to IRS letters and provide representation services when significant issues are discovered.