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I filed my taxes in February, they said I owed $905, I paid $905. Easy-peasy. Today I got a check (with accompanying note) for a five-digit sum from the US Treasury. This is because while the form I submitted had a blank line 65, the IRS claims a very large number indeed is stated on that line. Do I really have to send the check back? I feel like if I did nothing wrong, I shouldn't be punished by being forced to be made aware of the issue and then literally give back a new car to the government. Shrecknet fucked around with this message at 03:21 on Mar 15, 2018 |
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Mar 15, 2018 03:17
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Elizabeth Mills posted:I filed my taxes in February, they said I owed $905, I paid $905. Easy-peasy. Yes. How is it a punishment for you to return money that wasn't yours to begin with?
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Mar 15, 2018 03:48
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When the IRS discovers the mistake, they will very helpfully correct it for you and then send you a notice letting you know how much you get to pay back, plus interest.
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Mar 15, 2018 04:01
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Lol you think you get to keep the money? Seriously?
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Mar 15, 2018 04:11
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urnisme posted:How is it a punishment for you to return money that wasn't yours to begin with?
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Mar 15, 2018 05:46
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Elizabeth Mills posted:"Here, I got you an adorable Golden Retriever puppy. PSYCH! I'm taking the golden retriever back and using the money to build a wall on the Mexican border!" that is a loving retarded analogy
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Mar 15, 2018 10:30
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Elizabeth Mills posted:I filed my taxes in February, they said I owed $905, I paid $905. Easy-peasy. Elizabeth Mills posted:"Here, I got you an adorable Golden Retriever puppy. PSYCH! I'm taking the golden retriever back and using the money to build a wall on the Mexican border!" If a teller at your bank deposited a $5,000 check for someone else into tour account, do you think you should have the right to keep it?
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Mar 15, 2018 14:29
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Elizabeth Mills posted:I filed my taxes in February, they said I owed $905, I paid $905. Easy-peasy.
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Mar 15, 2018 14:47
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If you mail back a copy of the deposited check with 'no take backs' written on the front they legally can't do anything to you.
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Mar 15, 2018 14:54
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What's probably going to happen is that the person who sent in that check reversed the social security numbers or something. They'll get a bill for 5 figures and penalties, and call the IRS and wait on hold for two hours before getting disconnected. Then they'll call back and get bounced around between automated systems and clueless CSRs before getting disconnected. Finally, on the third try, they'll get through to someone who knows what they're doing, and they'll get the payment credited to the right SSN. And then the IRS will send you a bill for the amount. If you want to avoid that, return the check by following those instructions you linked. It will save you a headache in the medium-run.
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Mar 15, 2018 15:04
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I'd be annoyed about having to do work to fix their mistake, but I wouldn't think that I could keep the money.
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Mar 15, 2018 15:07
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Wanted to get a quick gut check on estimating 2018 taxes with the new law. Looks like my situation is much more simple now that I do not have enough costs to itemize. I'm going to juggle around my withholdings in order to minimize my refund in 2019 so I want to surface any errors in my methodology now. I've used some online calculators and it ties to my numbers, but they're only as good as the assumptions you put in.code:TraderStav fucked around with this message at 20:22 on Mar 20, 2018 |
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Mar 15, 2018 15:16
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Elizabeth Mills posted:Do I really have to send the check back? Of course you do, dummy.
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Mar 15, 2018 15:36
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TraderStav posted:If you mail back a copy of the deposited check with 'no take backs' written on the front they legally can't do anything to you. Return to sender in a gold-fringed envelope.
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Mar 15, 2018 17:03
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I live outside the US, and work for clients who are outside the US for matters that are not related with the US. A local client, who is not a US tax person, has offered to pay me out of his US bank account via check which I would deposit in my US bank account. Can I still claim this under the FEIE?
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Mar 15, 2018 19:24
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Ur Getting Fatter posted:I live outside the US, and work for clients who are outside the US for matters that are not related with the US. Yes, if you are paid for work performed in a foreign country it is foreign source income even if paid by a US source/deposited in a US account. So exclude away. EAT FASTER!!!!!! posted:Of course you do, dummy. I suppose you can destroy it without issue so long as not cashed.
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Mar 15, 2018 20:30
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MadDogMike posted:Yes, if you are paid for work performed in a foreign country it is foreign source income even if paid by a US source/deposited in a US account. So exclude away.
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Mar 15, 2018 20:40
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Elizabeth Mills posted:I know it's an error and I'm gonna do the right thing, but since I completed my forms correctly and they were the ones who added the mystery number to MY 1040 and then sent me a check, I figured there was no harm in asking if I could just agree to the IRS's revision to my 1040.
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Mar 15, 2018 20:47
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So a year ago I got a notice for deficiency for 2015 due to a mistake by my tax guy. He filed an amended return and I paid the new amount owed (check was cashed last year). They still keep sending me notices of deficiency. After the first one I got my tax guy to call in and he said they told him they have the new return and payment, things are good, I should just hold tight. Today I get a Certified letter of deficiency with the same loving problem. They say I need to respond by 90 days either by accepting the judgement (which is wrong, I've already paid the right amount which was actually more) or by petitioning the tax court (which costs me $60 plus a day in San Francisco, and I don't know wtf happens there). And they don't say a thing about waiving penalties, which my tax guy asked about. I'm trying to call the IRS line but I spent an hour on hold before they disconnected my call, and I'm on hold now. So hey, what do you all think I should do? Suck it up and pay the fee to go to tax court, even though I've already paid the deficiency? I would ask my tax guy but honestly, he's the one who got me into this mess and I trust you guys more.
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Mar 15, 2018 21:47
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moana posted:So a year ago I got a notice for deficiency for 2015 due to a mistake by my tax guy. He filed an amended return and I paid the new amount owed (check was cashed last year). They still keep sending me notices of deficiency. After the first one I got my tax guy to call in and he said they told him they have the new return and payment, things are good, I should just hold tight. Today I get a Certified letter of deficiency with the same loving problem. They say I need to respond by 90 days either by accepting the judgement (which is wrong, I've already paid the right amount which was actually more) or by petitioning the tax court (which costs me $60 plus a day in San Francisco, and I don't know wtf happens there). And they don't say a thing about waiving penalties, which my tax guy asked about. So you received a statutory notice of deficiency, and then filed an amended return? Maybe they didn't realize the changes on the amended return were your response to the notice, and they made the changes from the 1040X but also the assessment. Was it from an exam or a CP 2000
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Mar 16, 2018 04:59
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moana posted:So a year ago I got a notice for deficiency for 2015 due to a mistake by my tax guy. He filed an amended return and I paid the new amount owed (check was cashed last year). They still keep sending me notices of deficiency. After the first one I got my tax guy to call in and he said they told him they have the new return and payment, things are good, I should just hold tight. Today I get a Certified letter of deficiency with the same loving problem. They say I need to respond by 90 days either by accepting the judgement (which is wrong, I've already paid the right amount which was actually more) or by petitioning the tax court (which costs me $60 plus a day in San Francisco, and I don't know wtf happens there). And they don't say a thing about waiving penalties, which my tax guy asked about. Mail a new copy of the amended return and a copy of the cancelled check to whatever address is on the most recent letter and ALSO call and hope and pray you get connected to someone. If they have no record of the amended return ask them if you can get a hold on collection activity while you resubmit the amended return.
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Mar 16, 2018 05:17
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sullat posted:So you received a statutory notice of deficiency, and then filed an amended return? Maybe they didn't realize the changes on the amended return were your response to the notice, and they made the changes from the 1040X but also the assessment. Was it from an exam or a CP 2000 Thank you, Epi Lepi, I will do that tomorrow! Should I be sending this by certified mail?
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Mar 16, 2018 06:06
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moana posted:Yes. CP 2000. Certified mail is cheap compared to the potential of dragging this out. I always send certified return receipt so I can prove WHEN something was actually received. I don't think they lose poo poo on purpose, but it's a huge machine with lots of addresses and lots of government employees. So yeah, they've definitely lost stuff on me before.
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Mar 16, 2018 14:26
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Dumb question that google isn't answering. I'm amending my federal and state taxes due to an error. With both, you have to provide a copy of the original 1040. Do I sign the 1040X and the copy of my original 1040 (I originally used TurboTax to e-file), or do I just have to sign the new 1040X?
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Mar 17, 2018 20:36
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Henrik Zetterberg posted:Dumb question that google isn't answering. quote:Don’t attach a copy of your original return, correspondence, or other items unless required to do so. I mean, it's probably not going to hurt, but the IRS doesn't need it. Just sign the 1040X.
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Mar 17, 2018 23:01
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Ok, the instructions TurboTax gave me was to send in the 1040X with the original 1040. And of course my CA state return requires a copy of my federal return  Thanks!
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Mar 17, 2018 23:18
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sullat posted:I mean, it's probably not going to hurt, but the IRS doesn't need it. Just sign the 1040X. Correct, you just sign the 1040X (and associated CA form, assuming it's probably called a 540X). You send in, as support, a printout of any of the tax forms/scheduled that changed from the original filing and write/stamp "AMENDED" on them. If the amended form is the same as the original (it didn't have anything to do with the change) you can leave it out from the mailing. Example: You forgot some charity. Oops! You send in a new schedule A and write amended on it. However, you also had a schedule B with interest and dividends, and that didn't change at all. You *don't* send a copy of the schedule B with the amended paperwork, since it's still the same.
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Mar 18, 2018 21:16
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Great. Thanks guys! I feel like a caveman mailing my taxes in.
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Mar 19, 2018 16:58
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Henrik Zetterberg posted:I feel like a caveman mailing my taxes in.
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Mar 19, 2018 17:26
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SiGmA_X posted:Welcome to the USA. Some day we may step into the first world with paperless and pre-filled tax forms...but the accounting lobby is strong, so don't count on it! B-b-but my postcard!
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Mar 19, 2018 19:12
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SiGmA_X posted:Welcome to the USA. Some day we may step into the first world with paperless and pre-filled tax forms...but the accounting lobby is strong, so don't count on it! As a tax professional - A) Amended returns need to be mailed in since the IRS' computers/mainframes are so antiquated, they need paper returns to ensure there's no accidental processing errors between that and the originally filed return. B) It takes the IRS around 8-10 months to process all of the 1099/W-2/K-1 forms they receive - aside from checking a few key numbers, the IRS issues you a refund based on faith when you originally file. They're overwhelmed with paperwork - which is not the accounting lobby's fault. They need a serious hardware upgrade at the IRS level, and that's not going to happen soon. C) After doing this for 20 years, most of the clients I've dealt with are lucky to balance a checkbook. This is true no matter how much (or how little) wealth you have. I've been baffled as a billionaire asked his wife what on earth she was spending $30k a month for, and she just laughed and wandered off. Trying to get the average taxpayer to pay enough attention to their finances to file returns is going to be a monumental task.
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Mar 19, 2018 19:14
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AbbiTheDog posted:As a tax professional - C, well, that too but humans.
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Mar 19, 2018 19:32
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SiGmA_X posted:A&B are the things I wish we could improve. Replacing 20,000 abacuses with actual computers so the IRS can tax people better isn't really a sexy running platform tho, so I'm gonna go ahead and guess that this is the system we will have for the foreseeable future.
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Mar 19, 2018 21:40
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black.lion posted:Replacing 20,000 abacuses with actual computers so the IRS can tax people better isn't really a sexy running platform tho, so I'm gonna go ahead and guess that this is the system we will have for the foreseeable future. When the GOP started slashing the IRS budget, my accounting buddies and I figured "Well, the audit rate is dropping, but we still better obey the rules because when Hillary gets elected she'll restore the budget, so might as well keep toeing that line." November 2016 - well, poo poo. Guess the audit rate is going to continue to be low for a while. So why do I force my clients to be honest? Liability, baby. Professional liability.
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Mar 20, 2018 00:36
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AbbiTheDog posted:When the GOP started slashing the IRS budget, my accounting buddies and I figured "Well, the audit rate is dropping, but we still better obey the rules because when Hillary gets elected she'll restore the budget, so might as well keep toeing that line." SiGmA_X fucked around with this message at 06:17 on Mar 20, 2018 |
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Mar 20, 2018 06:11
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B was recently fixed with regard to W2s. The IRS now gets them directly in January as opposed to indirectly in May-whenever the SSA sends over the data. A high-end tax preparer might not notice that, but franchise level ones certainly are as the IRS is refusing to release a lot of sketchy refunds.
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Mar 20, 2018 17:24
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In 2017 I had schedule C income and also I moved states. I'm trying to figure out how to apportion the income between states, i.e. what is the date of the move. The income is entirely internet-based, there is no client location or anything, so the only possible factor is my residence. Move timeline was something like: - Day 1: left the first state to drive one car to the new state - Day 3: arrived in new state to drop off car - Day 5: left new state to travel - Day 38: arrived with second car in a third state (within metro area of new state) to stay in temporary housing while looking for a place - Day 48: moved into new residence in new state Which day is my move date?
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Mar 20, 2018 17:49
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SiGmA_X posted:Pft, ethics. Crazy thing, that. Trust me, I fire more clients than most over dubious records. I have enough work I don't need to worry about your shady accounting. We evaluate clients annually and terminate around 2-3 dozen per year (out of around 900) due to billing issues or just "bad vibes." We don't let new clients in the door if we feel like they are pushing the line too much ("I need an accountant that thinks outside the box" is a key phrase).
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Mar 20, 2018 19:21
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Shedding annoying/dubious clients is an art - we kindly refer them to our cross-town competitor, who charges way too much 
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Mar 20, 2018 20:16
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Well, sure, thinking outside the box is way easier than thinking inside the box. At least, before I've removed all my receipts from it.
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Mar 20, 2018 20:47
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