If you are a business taxpayer who has not filed a return, or filed a false or fradulent return, then beware. The IRS can prepare returns and assess taxes under the authority of IRC Section 6020(b); and they are taking advantage of this rule more than ever before. For instance, in Fiscal Year 2011, $1.64 billion in 6020(b) assessments were levied.

So what should you do? For one thing, don't just pay without question. For instance, the U.S. Treasury Department has recently reviewed the 6020(b) process and found that in 20 percent of the assessed cases, that there was no evidence for the basis of assessments. In addition, in 10 percent of the 6020(b) cases, the IRS 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.

You will want to make sure that if the IRS notifies you as to a potential 6020(b) assessment that you respond within your 30 days. Otherwise, the IRS will prepare your employment, excise, or partnership returns based on available information such as the last returns you filed. They will figure your tax and send you a bill for that tax, plus interest and penalty charges. Not only will none of this filing be done to your advantage but it can lead to tax levy's, bank levy's, federal tax liens, and more.

If you are a business who has received an IRS Letter notifiying you of a possible 6020(b) assessment then we can help you with your response - don't let your statutory response window lapse. Please note that TIR Answer Center subscribers enjoy deeply discounted hourly rates in handling matters such as these or other IRS notices - including the dreaded Form 972-CG. Subscribe today!