Just sharing a common experience with the IRS. Client receives letter from the IRS saying that deductions or adjustments were not allowed on tax return and the taxpayer owes X amount of money with interest and penalties and response is due by Y. Usually Y is in a few days and the taxpayer is highly anxious.
I come into the picture, take a look at the tax return filed and think yes the IRS wouldn't accept that deduction or adjustment. I then prepare a revised tax return (1040) and amended tax return (1040X) and write a letter to the IRS and this all has to be done quickly because the mail is slow and it has to meet the date mentioned in the IRS letter. So, off it goes, I have to charge for my work, which considering there are 3 items is not peanuts but still not too expensive. The client then gets a letter a month later stating that they owe even more money. Client calls me panicked, extremely panicked. I explain that the IRS doesn't know that you sent it in and to call them, but you know the phone call is long distance and the client has already spent money paying me, sending the amended tax return by tracking and really doesn't want to spend the money, so decides to mail in another copy to the address on the letter. Time passes and the taxpayer calls me saying oh they haven't sent it in and can I send them copies of the amended tax return. I say how about we call and so I call and this is approximately what the agent says:
The IRS did receive your amended tax return and it takes approximately 16 weeks to process. They will put a hold on the taxpayer's account for at least 9 weeks (it's approximately 7 weeks after they received the amended tax return), so no more letters from the IRS for now.
Taxpayer is significantly relieved. Once the IRS comes after you, they keep writing you whether you have addressed the issue or not and the only solution is to call them long distance and be on hold for say 1/2 hour.
It ain't easy being a US filer in Canada. The mail takes too long and the IRS doesn't process your stuff, but will send you a letter after letter.