For my client, I filed a 1040 with an exclusion based on IRC section 104(a)(2) exclusion damages. I attached a disclosure Form 8275-R, to cover our asses.
How long will it take IRS to respond??
Noel Nichols
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How long to hold my breath
Jul 01, 2007
1 Replies
The attachment of a disclosure statement is not going to necessarily trigger a review of the return. If your client was issued a 1099 for the damage payout it might cause a CP-2000 notice to be issued. Otherwise, you will have to wait out the 3 year SOL. Presumably the disclosure itself will preclude the 6 year SOL and the absence of fraud will keep you out of trouble beyond that.
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