We asked them a question on Form 5471 (foreign corporation tax form) involving a filing issue that was specifically addressed and answered on page 1 or 2 of the IRS instructions to Form 5471. We then waited for the email answer which came in about a week.
Their answer thanked us for our question and then state it was a complex question and we should consult a CPA or other tax professional for an answer because they were not able to answer it. The IRS response showed us:
- One more time that a taxpayer cannot rely on the IRS who writes and administers the International Tax system to answer questions even if they indicate they will do so and should know the answer.
- A question that was answered on page 2 of the instructions for Form 5471 was too difficult for the IRS to handle....then how do they expect taxpayers to handle it.
- The IRS creates a lot of business for tax professionals like us.