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Guy Axlerod posted:Did you mean to say that NC taxes were NOT withed from your paychecks? Yeah, I did, sorry. And thanks, I think that's what I was looking for.
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Oct 4, 2016 18:02
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dupersaurus posted:Yeah, I did, sorry. And thanks, I think that's what I was looking for. I would skip a CPA for investing advice, BTW. Do your own research - check out the LT thread here in BFC. My CPA friends are generally horrid with investments.
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Oct 4, 2016 18:46
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SiGmA_X posted:That makes a lot more sense from your questions. As a CPA, we're almost forced to stay away from (or tell clients we stay away from) investments. My insurance carrier would flip their poo poo if I gave investment advice, because I can get sued to heck and back for it. It's a big no-no.
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Oct 4, 2016 20:57
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Hi, quick question that I'm not totally clear on. I'm currently contracting, and because it involves travel I have a $75 per diem and can expense cabs/hotels/etc where necessary. I submit an expense report with my monthly invoice, and I am paid with one check that combines the two. When it comes to tax time, how should this work? Do I simply consider my income to be only the hourly amount of that check, or is my entire check considered income and I have to write off the expenses I was reimbursed for? I keep meticulous receipts and all that so I have the paperwork either way, I'm just curious as to the recommendation.
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Oct 4, 2016 21:37
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AbbiTheDog posted:As a CPA, we're almost forced to stay away from (or tell clients we stay away from) investments. My insurance carrier would flip their poo poo if I gave investment advice, because I can get sued to heck and back for it. It's a big no-no.  ). Even the ones who deal with investments all day long have minimal idea of what their personal holdings are or why they are what they are. Its sort of ironic. drat beancounters!I'm also not a fan of most investment advisers or the industry as a whole, CPA, CFA, etc. I feel the OP who said he was considering finding a cpa to help with investments would be better served with doing research him/herself instead. SiGmA_X fucked around with this message at 23:53 on Oct 4, 2016 |
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Oct 4, 2016 22:06
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Bobx66 posted:Is it possible to transfer my various old employer 401Ks into my self directed 401K? Will I need to do a "self directed rolloever" in which I liquidate my 401K accounts and then deposit the funds into my self directed 401K within 60 days? Etrade's website is implying that the prior 401Ks are eligible to be transferred directly into the self directed 401k. Thanks to a 2014 tax court decision you only get ONE indirect rollover (where you get the money handed to you and you turn around and deposit it in another retirement account within 60 days) per year. If you want to liquidate multiple accounts, make sure you do them as a trustee to trustee direct rollovers (i.e. have it between the investment banks or whatever. instead of coming into your hands during the process), there's no limit on those. That's what the E-Trade website is probably talking about with the direct transfer thing. As for going with E-Trade or whatever see AbbiTheDog's bit above about not giving investment advice (I don't know about CPAs, but I'm positive I certainly don't know enough about investments other than counseling about the tax consequences of various choices  ).Splaa posted:Hi, quick question that I'm not totally clear on. I'm currently contracting, and because it involves travel I have a $75 per diem and can expense cabs/hotels/etc where necessary. I submit an expense report with my monthly invoice, and I am paid with one check that combines the two. When it comes to tax time, how should this work? Do I simply consider my income to be only the hourly amount of that check, or is my entire check considered income and I have to write off the expenses I was reimbursed for? I would say report the income including the reimbursement (especially since it's combined in the same check as the regular compensation) and write off the appropriate expenses. If nothing else it prevents the IRS from getting suspicious that travel expenses consistent with the type of work you do aren't being reported on your return, and I imagine the business will be reporting the whole thing together on a 1099-MISC anyway.
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Oct 5, 2016 02:50
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Seems reasonable. Followup question: I started doing this job kind of out of nowhere and I didn't think a whole lot because I am a dumb idiot - Started in May, Q3 is over, I didn't do quarterly tax payments, but I have been saving a solid 1/3rd. I'm booked for 6 months next year so I do plan to do quarterly payments, do I have anything I should be really actively worrying about? Total billing at the highest is maybe 5k/month. edit: it's a Canadian company, I assume I'm getting a 1099 but who knows?
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Oct 5, 2016 02:55
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SiGmA_X posted:would be better served with doing research him/herself instead. Not that I always recommend using an investment adviser, but man can people screw this up. I tell my clients it's like hiring a mechanic to work on your car - if you are able to work on it yourself, go for it. If you don't want to get your hands dirty or don't understand what you're doing, hire someone to help you out. And for the love of all that is holy, stay away from day trading.
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Oct 5, 2016 16:38
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AbbiTheDog posted:And for the love of all that is holy, stay away from day trading. Oh dear God please listen for tax purposes if nothing else; I'm still twitching about the day trader who brought in a thirty-six hundred page 1099-B I had to review, particularly the almost $2 million in transactions with basis not reported to the IRS I had to work out  . Granted (as is unsurprising for day trading) I think the whole thing worked out to a slight loss, but grinding through to determine that was a nightmare.
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Oct 6, 2016 00:45
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MadDogMike posted:Oh dear God please listen for tax purposes if nothing else; I'm still twitching about the day trader who brought in a thirty-six hundred page 1099-B I had to review, particularly the almost $2 million in transactions with basis not reported to the IRS I had to work out Out of curiosity, were you able to tell them that they're making a loss? I wonder if they know.
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Oct 6, 2016 15:23
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baquerd posted:Out of curiosity, were you able to tell them that they're making a loss? I wonder if they know.
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Oct 6, 2016 16:17
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SiGmA_X posted:Shouldn't their trading software tell them? Though maybe they don't believe it. Day traders... The software that generated the 1099-B was what was acting up I think; on the reporting form it was declaring several transactions had no cost basis. Had that been typed into typical tax software it would have concluded the stock had been acquired for free and sold for $2 million which would have juuust been a bit utterly insane. Fortunately by digging through the records (including some additional ones I asked for) I located the original purchase transactions and used that to establish basis. Not entirely sure why the basis hadn't been reported to the IRS to begin with for a stock purchase made in 2015, but there you go. So yeah, the lesson is don't rely TOO much on Fidelity or E-trade or whoever to always give you the correct records, keep your own!
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Oct 6, 2016 22:59
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There's a client I work on who is retired, and he passes the time by day trading. In 2013 when the market was up 30% he found a way to lose money. He also calculates his own qualified dividends each year because he doesn't trust the 1099 amounts. His calculations almost always end up with him owing more in taxes, but I go with his numbers because that's what he wants. He's a little crazy.
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Oct 8, 2016 18:45
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Anyone here have any experience paying taxes with a credit card instead of debit/check? I realize how stupid that might sound, but I have plenty of room (and more importantly, ability to pay!) on a 0% APR card and the 3rd party website (Pay1040.com) that handles payments has a transaction fee less than the rewards I get in return. If it was just taxes due, seems like it would be simple, but this is a result of a deficiency I've been fighting the IRS on and failing. Form 5564. I can't see any option online to take care of that, and I don't want to send in an invoice with instruction to charge my card and have the IRS process the payment and charge a 4%+ fee. Do I just submit a payment for what I owe according to them  and they will apply it and I'll be all set?
Moneyball fucked around with this message at 20:22 on Oct 8, 2016 |
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Oct 8, 2016 20:19
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My fiance has a VW Golf that's caught up in the dieselgate stuff. As part of her settlement they are offering to buy her out of her existing loan on the car for roughly $5,300 and give her a check for about $12,500. When it comes time to do her taxes is this money treated like ordinary income?
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Oct 9, 2016 02:10
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Moneyball posted:Anyone here have any experience paying taxes with a credit card instead of debit/check? I realize how stupid that might sound, but I have plenty of room (and more importantly, ability to pay!) on a 0% APR card and the 3rd party website (Pay1040.com) that handles payments has a transaction fee less than the rewards I get in return. After the IRS fees, you're almost always not going to get ahead paying with a credit card.
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Oct 10, 2016 16:56
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I bought a duplex. Property is ~2,200 sq ft, about 950 from one unit and 1250 for the other. I would like to confirm how I should best account for this on my taxes. When I bought it both units were occupied and rented. 3 months after close, I moved into the smaller unit, while the larger unit is still same tenants. I do not plan to live here long term, I plan to move and rent the smaller unit back out again. For simplicity's sake with tax prep I would love to simply account for the duplex as a single property. However, due to renting, then occupying, then (planning on) renting again, I don't believe that is possible. So, is the best bet to book it as two separate properties, and pro rate all expenses (property tax, communal utilities, etc) based on each unit's respective sq ft compared to the total? Side note - all passive activities are netted against each other for income purposes right? Loss on one rental property offsets income from another property? If so, in a couple years when I am renting out both units again, is there any reason I cant just book all expenses to one unit because whether I prorate them or not it doesnt matter because the bottom lines are eventually combined anyways? edit: or another idea I suppose is once I move out, transfer ownership to an LLC as a single property and then all income/expenses from both units are combined in that LLC's return
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Oct 10, 2016 22:09
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Nifty posted:I bought a duplex. Property is ~2,200 sq ft, about 950 from one unit and 1250 for the other. I would like to confirm how I should best account for this on my taxes. Prorating expenses that apply to both units by the relative square footage is the traditional way to account for them, yes; most tax software should be able to account for them that way I would think (our professional one certainly does), or just do the math yourself. So for example in this case, you'd multiply the total of an expense by 1250/2200 (56.8%) to get the business expense amount. Obviously if an expense is specific to one unit (i.e. fix a window in one of them or similar) it goes on that particular unit. Given you are splitting on which unit you are renting, I would probably treat them as two separate units with the expenses prorated (the Schedule E has A, B, and C entries to allow multiple properties on one sheet) just to accommodate the difference in when they are in service and the resulting depreciation situation. Activities are technically "netted" when they go on the 1040/bottom of Schedule E, but the IRS will want expenses accounted for in a column for each property, hence I wouldn't combine or "shift" where the expenses are lest the IRS decide to question why you're spending 2X the normal expense on one unit but not the other. The whole point of having your expenses reported clearly is so the IRS can look at them and decide if they're realistic relative to similar properties, placing expenses from one property on another property obviously doesn't work for that. Also, don't forget when you have a personal/private situation to split the mortgage interest and real estate tax onto the Schedule E AND Schedule A for the rental and personal use, respectively. Oh, and don't bother with the LLC thing, won't help you out.
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Oct 11, 2016 04:24
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AbbiTheDog posted:After the IRS fees, you're almost always not going to get ahead paying with a credit card. Maybe he has a 2% rewards card like me. After the 1.87% credit card fee, I usually make $5-6 bucks paying my taxes for no real additional effort.
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Oct 11, 2016 04:44
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Ancillary Character posted:Maybe he has a 2% rewards card like me. After the 1.87% credit card fee, I usually make $5-6 bucks paying my taxes for no real additional effort. 2%, yes. If the IRS processes it, rather than a 3rd party, they charge something between 4 - 5%. I was just curious about how to make the payment. VV: Obviously, that is a resource, but I was asking about how to pay for a specific form instead of just a 1040, and I was unable to find out definitively. Wondering if anyone had done the same. Moneyball fucked around with this message at 17:05 on Oct 11, 2016 |
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Oct 11, 2016 05:40
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Moneyball posted:2%, yes. If the IRS processes it, rather than a 3rd party, they charge something between 4 - 5%. I was just curious about how to make the payment. https://www.irs.gov
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Oct 11, 2016 16:52
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I work as an interpreter, which in practice means I deal a lot with government correspondence for clients who receive something in the mail, are absolutely confused and bring it into my office for an explanation. I get a lot of clients who bring in IRS correspondence, and typically it's simple stuff like the most common thing I see is the letter about not including form 1095-A. For what it's worth I have a Bachelors degree in Accounting so I like to think that my 2 semesters of tax work are enough to handle the small issues my clients bring to me like helping them fill out Form 8962. I've had a pretty good success handling this kind of stuff. Today a client came in with a massive packet from the IRS regarding an Audit of their 2015 taxes. The final page summarizes the reasons for their proposed changes. "We are continuing to disallow credits claimed on the return the American Opportunity Tax Credit and the dependent exemption for your son. This is being disallowed because he was claimed on another return". Is there a way to know who claimed the son? Is it likely some kind of error? The son filed a 1040EZ but correctly checked "You" on line 5, so I don't see how that could be him being claimed on another return. I'd just like to be able to explain to my clients what happened and provide them some direction, any input would be appreciated. I'm reticent to just say "find a tax professional" the immigrant community is awash in dozens of fly-by night tax prep people working out of Bodegas or their own homes and both cost and the language barrier means the majority of my clients get really abysmal help. On some level I should probably not get too involved but this is my community and I feel compelled to help if I can. I keep a 1040A in my office where some jackass made up dependents for someone (named them, salt and pepper) and gave them made up social security numbers and caused a dude just years of headache. That's the kind of poo poo I try to save my clients from. Ciprian Maricon fucked around with this message at 18:51 on Oct 13, 2016 |
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Oct 13, 2016 16:47
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Ciprian Maricon posted:I work as an interpreter, which in practice means I deal a lot with government correspondence for clients who receive something in the mail, are absolutely confused and bring it into my office for an explanation. I get a lot of clients who bring in IRS correspondence, and typically it's simple stuff like the most common thing I see is the letter about not including form 1095-A. For what it's worth I have a Bachelors degree in Accounting so I like to think that my 2 semesters of tax work are enough to handle the small issues my clients bring to me like helping them fill out Form 8962. I've had a pretty good success handling this kind of stuff. 1090x is not a tax form - do you mean 1040? It's pretty common for college kids to accidentally claim themselves on their returns. If they did, the kids need to file an amended return to "unclaim" themselves, and then the parents can claim them. The taxpayer might need to explain this to the auditor, however, and MAY be able to give the kids' amended return directly to the auditor. If you mail in an amended return, it might take 2-4 months to process, which might push way past the time to appeal any audit findings.
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Oct 13, 2016 18:21
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Yeah my bad, phone posting and not taking the time proof-read. I've seen a copy of the kids 1040EZ (idk where I pulled 1090x from) and on Line 5 he correctly selected "You" to indicate his parents would be claiming him as a dependent. I'm going to try and find someone more suitable to help them. I've spoken to the client since, and it turns out their 2013 and 2014 returns are also being audited as their tax prep person for those years (who has since disappeared completely) reported thousands and thousands of miles in order to get a bigger refund. This is a very common situation, I've been to the IRS office dozens of times to interpret for clients in similar situations. Is there anything they should do immediately? The IRS correspondence requests a response by the 31st but says precious little (nothing actually) about what you can do if you disagree with their changes and it may take my client some time to find the funds to employ someone with sufficient expertise. Ciprian Maricon fucked around with this message at 19:03 on Oct 13, 2016 |
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Oct 13, 2016 18:50
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Ciprian Maricon posted:Yeah my bad, phone posting and not taking the time proof-read. If you miss the deadline, the IRS can be unforgiving on budging. It's far easier to call the agent, explain the situation, and ask for an extension of time to hire a professional and respond to the claims. DO NOT IGNORE THE DEADLINE. Document the deadline and do NOT miss it. If you need to call them back by 10/31, you better darn well do it. Note that 10/17/16 is a big deadline for tax professionals, you'll get a far better response next week if you're trying to call someone. Note that the IRS doesn't allow taxpayers to "hide" behind tax preparers - they are responsible to read, understand, and approve the returns before they're filed. If they have proof the returns were filed without their consent, or changed afterwards, you can use that proof to eliminate some penalties. Even if the client signed the e-file forms, they would need to put forth the argument they aren't fluent with the language and didn't know what was going on, and that's going to depend on how much the auditor believes them - that argument would be hit-or-miss on succeeding. Edit: No, the IRS shouldn't tell you who claimed the kid, because THAT taxpayer would need to give consent to the IRS to talk to you about their account.
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Oct 13, 2016 19:08
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Thanks for the sound advice I will pass that along. AbbiTheDog posted:Edit: No, the IRS shouldn't tell you who claimed the kid, because THAT taxpayer would need to give consent to the IRS to talk to you about their account. That makes sense but also makes me curious when two people claim a dependent who does the IRS place the burden of proof on? Like with two divorced parents. Like is it first come first served or something? If I claim my friends kid and beat them to filing do they get a letter that says "Sorry someone already claimed that dependent, eat chain" I guess I'm just wondering when two people claim the same dependent, by what metric does the IRS accept one claim but not the other, do both parties get audited?
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Oct 13, 2016 19:39
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Ciprian Maricon posted:Thanks for the sound advice I will pass that along. The IRS has a very strict set of "tiebreaker rules" it applies. First if one of the people claiming is a parent and the other isn't, parent gets the dependent claim. If both or neither are parents, then it's by custody time. If custody time is split evenly, it's by highest AGI. In practice what this often means is you have to paper file the return in case of dispute, and the IRS should send back to both parties asking for things like school and doctor records and the like for proof of custody. I am somewhat confused by whether the young man did or did not claim himself; marking "you" should in fact claim himself unless I'm misunderstanding what you're saying. Easiest way is to double-check the deduction on the 1040-EZ; if it's around $10,000 he claimed himself by accident. However since if memory serves the IRS does make a distinction when they note "claimed on another return" vs. "claimed themselves", I'm worried somebody may have stolen the kid's SSN for a return (like that loving grifting preparer ). Might want to double-check if they had previous letters from the IRS asking for proof like I mentioned above; by default they should win by tiebreaker just by virtue of being the parents though unless he's a stepson of one of them and a divorced parent claimed him. It could also just be an outgrowth of the audit situation making the IRS snitty about demanding proof, because usually I would think they'd get at least one previous letter mentioning the issue before they jumped to denying. Usually there should be a "if you wish to dispute this, call X" phone number in the back pages of the notice if nothing else. If the IRS is being uncommunicative you can also look up the taxpayer advocate (Form 911), and maybe get some assistance that way. Given the pre-existing audit troubles though they probably do want a professional representing them for everything. Might also be worth filing Form 14039 for the kid if it is identity theft; hell, all of them should probably get a IP-PIN considering they got grifted by somebody who could very well have written down their SSNs and sold it to somebody if not using it themselves.AbbiTheDog posted:Note that 10/17/16 is a big deadline for tax professionals, you'll get a far better response next week if you're trying to call someone. Oh dear Lord yes, I'm as busy as I usually am during peak tax season, with the added bonus nobody files an extension on a SIMPLE return; some of these things feel like they should be drat final exam questions for a tax course. I'm reading here right now because after a nine hour shift my brain is still stuck in tax mode while my body twitches uncontrollably .
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Oct 14, 2016 01:14
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MadDogMike posted:I am somewhat confused by whether the young man did or did not claim himself; marking "you" should in fact claim himself unless I'm misunderstanding what you're saying. Easiest way is to double-check the deduction on the 1040-EZ; if it's around $10,000 he claimed himself by accident. However since if memory serves the IRS does make a distinction when they note "claimed on another return" vs. "claimed themselves", I'm worried somebody may have stolen the kid's SSN for a return (like that loving grifting preparer Line 5 on the 1040EZ reads. "If someone can claim you (or your spouse if a joint return) as a dependent check the applicable box(es) below and enter the amount from the worksheet worksheet on back" There are two check boxes under that marked "You" and "Spouse" and his form has checked "You". Now English is my second language, but I'm pretty confident that's spot on. Additionally his deduction was a hair over 3K, so definitely not the 10,300 for single. MadDogMike posted:It could also just be an outgrowth of the audit situation making the IRS snitty about demanding proof, because usually I would think they'd get at least one previous letter mentioning the issue before they jumped to denying. They received a letter before and responded by mailing documents to prove the son's identity, their familial relationship and University expenses. The current correspondence from the IRS has a page detailing what was included in their initial reply which includes birth certificates, driver licenses, bank statements, 1098-T, W2's, copies of letter for ITIN issued for each person on the return, and bank statements relating to the son's expenses (mostly tuition). I'm pretty confused as to why that was insufficient for the IRS. I hope someone just made an error regarding the son's return and mistakenly input that he claimed himself. The son's return has been processed months ago (and it was a paltry amount barely over 300, so there again I think more evidence he didn't claim himself) the other possibility IMO is just a zealous auditor. The son and father have nearly the exact same name, differing only in the maternal surname, problem is here in the United States the maternal surname is constantly cut off. So on loads and loads of documents the father and son present with the exact same two-name American naming convention of Given Name, Paternal Surname. I wouldn't be surprised that with audits for two previous tax years an auditor would look at that on documents and think "Nope" Hell my own name is completely botched and I somehow ended up with my maternal surname as my middle name and 20 years later I can't be arsed to change it. Ciprian Maricon fucked around with this message at 15:53 on Oct 14, 2016 |
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Oct 14, 2016 15:43
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I'm about to receive a sizable gift of cash from my father. It's more than $14,000 but (much, much, much) less than the $5.43 million limit, so I understand I have to report it but not pay taxes on it. Is this something that I can just do with TurboTax or should I be looking to hire a CPA for this year's tax return just in case? Also, do I need to document this money somehow other than just depositing in my bank account? Thanks for any help.
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Oct 14, 2016 18:15
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Ur Getting Fatter posted:I'm about to receive a sizable gift of cash from my father. It's more than $14,000 but (much, much, much) less than the $5.43 million limit, so I understand I have to report it but not pay taxes on it. If he and/or you are married, keep in mind the $14k is per person so you can transfer $56k without paperwork.
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Oct 14, 2016 19:10
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SiGmA_X posted:You do nothing. Your dad must report it. He needs to file a Form 709, and TurboTax doesn't do it. It looks pretty simple to fill out by hand but I've never done it. He will want to keep track of all of the 709's he files over his lifetime. Sorry, I forgot to clarify that I'm a US citizen residing abroad, but he's not a US citizen and he doesn't reside in the US. The money is being given to me abroad, in our country of residence, and will be held in my own bank account (in my country of residence, not in the US). I figured it didn't matter because I thought it was my responsibility to report it. Edit: yeah, I think it might be time to contact a CPA. If anyone feels like taking a crack at it send me a PM. dpkg chopra fucked around with this message at 19:30 on Oct 14, 2016 |
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Oct 14, 2016 19:25
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Ur Getting Fatter posted:Sorry, I forgot to clarify that I'm a US citizen residing abroad, but he's not a US citizen and he doesn't reside in the US. I am not 100% confident on answering what your father may have to do but I can answer what you will have to do. As a US resident you absolutely have to file form 114 every single year you have the account at an overseas institution and the amount is greater than 10,000$ for at least one day during the year. It is purely informational , unless you fail to file. My experience with the IRS on FINCEN situations is that they are very reasonable about failure to files and forgiving the penalties up to a point, the one situation where they declined to waive at first they later waived when we showed financial hardship from penalties. The form is due June 30th for 2015 and will change to mirror your personal return for the tax year 2016. Its a relatively straight forward form , but please please please don't forget to file it, I don't have pm but if you have any questions on it I would be more than willing to help.
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Oct 14, 2016 21:15
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Lord of Garbagemen posted:I am not 100% confident on answering what your father may have to do but I can answer what you will have to do. As a US resident you absolutely have to file form 114 every single year you have the account at an overseas institution and the amount is greater than 10,000$ for at least one day during the year. It is purely informational , unless you fail to file. My experience with the IRS on FINCEN situations is that they are very reasonable about failure to files and forgiving the penalties up to a point, the one situation where they declined to waive at first they later waived when we showed financial hardship from penalties. The form is due June 30th for 2015 and will change to mirror your personal return for the tax year 2016. Its a relatively straight forward form , but please please please don't forget to file it, I don't have pm but if you have any questions on it I would be more than willing to help. Thanks for the tip! Yeah, TurboTax files form 114 automatically for me (or more accurately, it asks me if I want to file it but since I've never had over $10,000 in my foreign account it automatically skips it). That's actually what prompted my post since I'm worried that next year when I file, I'm going to answer "yes" to this question, and the IRS is gonna freak out about where the gently caress did all this money come from.
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Oct 14, 2016 22:07
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Ur Getting Fatter posted:Thanks for the tip! Yeah, TurboTax files form 114 automatically for me (or more accurately, it asks me if I want to file it but since I've never had over $10,000 in my foreign account it automatically skips it). They have released snippets saying that checking yes and filing form 114 does not increase audit chances. Also, remember that foreign accounts means retirement accounts, investment accounts, etc.
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Oct 14, 2016 23:05
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revmoo posted:IRS sent me a CP2000 demanding money because I filed a W2 and my employer didn't. Not my fault, my taxes were paid accurately, I had nothing to do with it. Their accountant just failed to file. I'm in a really similar situation. I got a letter saying I overreported my witholding on my 2014 taxes. The letter said it should have a phone number to call (it didn't) and an envelope to respond (it didn't). I figured out that they must have lost one of my W-2s. I called the main IRS number and bounced around forever, talked to 4 different people, and finally got someone in the "Automated Underreporting Department". They confirmed that they didn't have the W-2 that I sent them back in 2014. They gave me a number to fax (!) it to, and sent me over to the billing department to put a "hold" on my payment. They said to call back later. Tried calling today to confirm receipt of the fax, got stuck on hold for 2 hours and then the call dropped. Tried calling back again and got a "due to high call volume, we aren't even going to put you on hold. good bye". Here's something annoying: If that W-2 really doesn't exist, as they claim, then my income should be way lower, so I actually OVERPAID. So either: 1. I made up the W-2, they owe me money, or 2. They just don't have the W-2, we are even. There is no situation where I should actually owe them money, but that is what they are claiming. Is it possible / a good idea to try to go to my local IRS office to resolve this issue?
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Oct 15, 2016 06:35
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I think they are actually using the W2 as proof of your withholding, not income.
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Oct 15, 2016 15:45
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Ciprian Maricon posted:Line 5 on the 1040EZ reads. OK, understand you, sounds like he's fine there then. quote:They received a letter before and responded by mailing documents to prove the son's identity, their familial relationship and University expenses. The current correspondence from the IRS has a page detailing what was included in their initial reply which includes birth certificates, driver licenses, bank statements, 1098-T, W2's, copies of letter for ITIN issued for each person on the return, and bank statements relating to the son's expenses (mostly tuition). I'm pretty confused as to why that was insufficient for the IRS. So am I; unless they missed some item the IRS did ask for, there's no logical reason why the IRS should be denying him as dependent, especially since I imagine he's been previously claimed on their taxes. Definitely point them at taxpayer advocate, this is somebody being dumb thanks to the audit I think. The name confusion may explain it (and should be brought up) but it certainly doesn't justify it in the face of that much info I think. Marvel posted:There is no situation where I should actually owe them money, but that is what they are claiming. Ooooh trust me, the IRS coming up with mathematically stupid explanations for why you owe money is not unprecedented. I ALWAYS check the math on those letters even if they're right about the issues. I suspect Jobert's right that their system has a record of the income but somehow lost the withholding. I would try the local IRS office (bring the W-2 in question, make a photocopy first just in case they try to hold onto it); if nothing else, it puts the burden of faxing the thing in on them instead of you.
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Oct 15, 2016 16:39
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Jobert posted:I think they are actually using the W2 as proof of your withholding, not income. This is essentially correct. Basically you claimed an income of X and withholding of Y . The IRS is more than happy to accept your word for X (after all, a lot of people are paid under the table and will report it on line 7), but Y needs to be verified. So that's why they need the w-2 so they can pull a credit from the withholding pool and apply it to you. As far as an appointment with the local office is concerned, they will take your w-2 and fax it to AUR; once AUR has it it will take them 4-6 weeks to get around to correcting the issue. If you don't get a letter from AUR after about 4-6 weeks from faxing them the stuff, give them a call and offer to re-send it. Unfortunately, neither the local offices or the phone people are the ones who will do the work, but they can happily tell you to wait a few more weeks once you contact them.
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Oct 15, 2016 17:18
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sullat posted:This is essentially correct. Basically you claimed an income of X and withholding of Y . The IRS is more than happy to accept your word for X (after all, a lot of people are paid under the table and will report it on line 7), but Y needs to be verified. So that's why they need the w-2 so they can pull a credit from the withholding pool and apply it to you. As far as an appointment with the local office is concerned, they will take your w-2 and fax it to AUR; once AUR has it it will take them 4-6 weeks to get around to correcting the issue. If you don't get a letter from AUR after about 4-6 weeks from faxing them the stuff, give them a call and offer to re-send it. Unfortunately, neither the local offices or the phone people are the ones who will do the work, but they can happily tell you to wait a few more weeks once you contact them. I had this issue pop up with one of our clients. The company he worked for didn't want to pay their payroll taxes, so they didn't send in the 941 or w2 forms. Eventually the IRS caught up to our client and said the same thing, he overreported his withholding. Took about 6 months to clear up. His former boss is going to enjoy hearing from the IRS soon I'd say.
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Oct 17, 2016 16:55
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Marvel posted:They said to call back later. Tried calling today to confirm receipt of the fax, got stuck on hold for 2 hours and then the call dropped. Tried calling back again and got a "due to high call volume, we aren't even going to put you on hold. good bye". Mid-October is one of the big tax deadlines (extended individual returns are due today), so you may have better luck in a couple days.
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Oct 17, 2016 18:32
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