An email from a lawyer friend who is handling a Voluntary Disclosure Program case:
The IRS in its infinite wisdom is demanding that my client file amended for returns for two years in which her unreported income is less than (less than $50; obfuscated by me).
I think they have lost their minds.
I have seen similar evidence of OCD in the VDP at the IRS. (TLAs FTW). Revenue Agents handling some of our cases have sometimes requested do-overs for for truly insignificant amounts. Fixing a $20 mistake by using $800 of overhead at the IRS? Conclusions are self-evident.
For those of you out there who are participating in the Voluntary Disclosure Program, please be aware of who and what you are dealing with.