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sullat posted:You'll receive a notice in the mail at the end of May, early June. It will helpfully calculate the amount you owe + penalties and interest. You should pay what you owe through the direct pay system on the IRS website before then to minimize the penalties & interest. That same web site will absolutely show you any payments they have received for 2017 as well.
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May 23, 2018 16:15
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Okay, we've got a little stashed away and are actively saving now for a lawyer, but in the meantime I'm hoping someone has dealt with this too. I live in Texas with my husband. His divorce from his ex-wife was final 2 years ago. We got a notice some months back that when they were married, their last tax return they filed together was done wrong. His ex-wife gave their paperwork and W2s and such to her mother and had her mother do the taxes, despite, as far as I know, her not being a tax professional but whatever. Ex-wife is an independent contractor doing hair or some such so her taxes are a little different and wages are self-reported. Either she lied about her wages, her mother lied about ex-wife's wages, or there was a huge mistake, but one way or the other, both my husband and his ex wife got hit with notices that they owe something like $6,000 in back taxes because of her mother's (or her own) gently caress up, and the notice specifically notes the numbers problem is with her wages entirely. So now the IRS has them for several thousand dollars and they took a chunk of it out of ex-wife's refund. We got a notice on setting up a payment plan to the IRS and now ex-wife wants us to pay her too for the $1800 she's decided is his responsibility from what the IRS took out of her refund. Which means we'd owe her $1800 as well as the amount the IRS wants from us. Because she, or her mother, can't math. Anyone have experience with this? They filed jointly, so I'm assuming that means he's on the hook for whatever she owes but my very best googling has given me some wildly divergent answers, and today she called wanting us to go to her house to sign some agreement with her on the terms of paying this $1800 back to her, so I don't want to drag my feet but I also don't want to break the bank trying to pay her back something that isn't our problem. And if it is, I'm not mad at it. Her family just has a shady history of questionable dealings so I don't want to assume the people who didn't correctly report earnings to the IRS have all their stuff completely figured out and in line. Any guidance?
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Jun 5, 2018 01:51
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The Dickens posted:Okay, we've got a little stashed away and are actively saving now for a lawyer, but in the meantime I'm hoping someone has dealt with this too. I think you should start here to see if anything applies: https://www.irs.gov/newsroom/injured-or-innocent-spouse-tax-relief
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Jun 5, 2018 02:15
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Motronic posted:I think you should start here to see if anything applies: https://www.irs.gov/newsroom/injured-or-innocent-spouse-tax-relief That's enormously helpful, thank you! I'm guessing I just haven't phrased this correctly when looking for answers, this seems pretty straight forward.
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Jun 5, 2018 02:46
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The Dickens posted:That's enormously helpful, thank you! I'm guessing I just haven't phrased this correctly when looking for answers, this seems pretty straight forward. It's all good. You need to know the secret legal/tax words to even start. Hopefully those are the right ones.
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Jun 5, 2018 03:04
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Motronic posted:I think you should start here to see if anything applies: https://www.irs.gov/newsroom/injured-or-innocent-spouse-tax-relief quote:7. Do not use Form 8379 if you are claiming innocent spouse relief. Instead, file Form 8857, Request for Innocent Spouse Relief. This relief from a joint liability applies only in certain limited circumstances. However, in 2011 the IRS eliminated the two-year time limit that applies to certain relief requests. IRS Publication 971, Innocent Spouse Relief, explains who may qualify, and how to request this relief. quote:You must meet all of the following conditions to qualify for innocent spouse relief. *I am not a CPA, attorney, or tax professional and this is not formal advice. SiGmA_X fucked around with this message at 07:00 on Jun 5, 2018 |
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Jun 5, 2018 06:44
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SiGmA_X posted:I think this will apply. From the IRS site: Innocent spouse is a tough road to travel. See these links. https://law.freeadvice.com/tax_law/tax_enforcement/innocent-spouse-rule-requirements.htm https://www.journalofaccountancy.com/issues/2014/may/innocent-spouse-relief-20139090.html Compounded by this is the amount is $6,000, which is a decent chunk of money (especially to an ex-spouse) but almost sorta really not enough to hire a professional at $200/300 an hour to argue with someone. Agreeing with the above poster, DON'T AGREE to anything with the ex. The IRS will happily just go after anyone and let them the taxpayers duke it out on their own. You might just hire a tax attorney to draft an innocent spouse relief letter to the IRS and send it off - see if they can do it in a 2-3 hour time period and state the facts. Unless you have a non-tax reason to talk to the ex (child custody, for example) you might just ignore her on this.
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Jun 5, 2018 16:39
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Motronic posted:I think you should start here to see if anything applies: https://www.irs.gov/newsroom/injured-or-innocent-spouse-tax-relief Not relevant. The IRS took ex wife's refund and she wants ex hubby to pay her some of that. That's between them and the divorce decree. If the IRS takes The Dickens' refund, then she would use that form. If the IRS says hubby owes 6k from the joint return and they took 3600 from the refund, hubby should set up a payment plan with or without ex.
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Jun 5, 2018 23:00
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sullat posted:Not relevant. The IRS took ex wife's refund and she wants ex hubby to pay her some of that. That's between them and the divorce decree. If the IRS takes The Dickens' refund, then she would use that form. A tax attorney is the way they're going to need to go.* Unless the divorce decree called out back taxes or bad debts or something? Not something I can speak to but I understand the IRS can still collect from both parties either way, and they'll have to go to court over it. * They might be able to just file form 8857, but like Abbi said, get a tax attorney. SiGmA_X fucked around with this message at 01:32 on Jun 6, 2018 |
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Jun 6, 2018 01:28
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My reading is that the ex wife's refund was seized and she thinks hubby should compensate her for half of that. Which isn't an IRS issue, it is all about how any debts were assigned during the divorce. The notice is asking for the remaining amount, and the IRS isn't going to let them go halfsies on the debt. So they are going to have to agree on a payment plan (best plan), set up separate payment plans, or husband can try the innocent spouse route. Which is a tough road to follow. I know very little about the innocent spouse process, and I don't know if the tax attorneys working that field are scammers like the ones working with OICs, but I would be cautious about hiring someone for that. Family law attorney would be more helpful, since ex is trying to get him to sign a promissory note or something crazy.
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Jun 6, 2018 03:49
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sullat posted:My reading is that the ex wife's refund was seized and she thinks hubby should compensate her for half of that. Which isn't an IRS issue, it is all about how any debts were assigned during the divorce. The notice is asking for the remaining amount, and the IRS isn't going to let them go halfsies on the debt. So they are going to have to agree on a payment plan (best plan), set up separate payment plans, or husband can try the innocent spouse route. Which is a tough road to follow. I know very little about the innocent spouse process, and I don't know if the tax attorneys working that field are scammers like the ones working with OICs, but I would be cautious about hiring someone for that. Family law attorney would be more helpful, since ex is trying to get him to sign a promissory note or something crazy. 1) the $1,800 BS request that the divorce decree may cover 2) the outstanding IRS debt, which may be covered by - (a) divorce decree - (b) innocent spouse - (c) paying up because the IRS is like a honey badger when you break the law, and the IRS explicitly doesn't give a gently caress about the divorce decree so the whole "joint end several" part applies until a court adjudicates the new issue. I have 0 experience with this, OP needs to find an attorney. Maybe his divorce attorney would know someone.
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Jun 6, 2018 07:33
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SiGmA_X posted:Ah, I see where you were going with it. Yeah, its two separate issues at present, stemming from one. IRS gives zero shits about what the divorce decree states.
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Jun 6, 2018 17:14
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Okay, the situation is that the IRS said "We didn't take enough money from ExWife and OP's Husband because EW's income wasn't properly reported." So the IRS took the refund he and I "got" from our joint return, they took the refund EW would have gotten from her return and there's an additional 1800 that isn't accounted for that the IRS wants us to pay. We've already set up a payment plan with the IRS for the $1800. When this refund came back in 2016 or whenever, my husband and EW were already divorcing and decided to split the refund 50/50 because it was simpler, even though he made more than she did that year. So now that the IRS has taken money away from everyone involved this year to make up for it, she wants to split the debt 50/50 as well, which makes sense. I don't think that's unreasonable, neither does he, and nobody is contesting that to her. So we're dividing the debt in half, less the $1800 and that's what she wants him to pay back to her. Which...okay, that seems reasonable to me, but now she's getting sassy about wanting us to go over there and sign something. We of course asked if she could just send it to us because why make the (admittedly short) drive over there just to look at a form we could read just as easily at home? She won't email it, insists we have to go over there and we're not doing it. Now she's worked about it and saying she's getting a lawyer about it tomorrow, even though we're not saying we won't pay it, we just aren't driving over there right this second (especially considering she's dragged her feet on what to do and said she was getting the information together for the last four months but all of a sudden there's a clock ticking.) I don't honestly even know what she needs a lawyer for, I guess we could go to court over this but we're not refusing to pay her, we're just not going to agree to some bananas amount a month on top of $800 in child support. Sorry for the big vomit of our drama, I just really did think that once custody and child support was sorted out we'd be done with this poo poo. This is utterly exhausting.
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Jun 7, 2018 01:03
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The Dickens posted:Okay, the situation is that the IRS said "We didn't take enough money from ExWife and OP's Husband because EW's income wasn't properly reported." So the IRS took the refund he and I "got" from our joint return, they took the refund EW would have gotten from her return and there's an additional 1800 that isn't accounted for that the IRS wants us to pay. As others have noted, this is really two issues: Your first paragraph is the only part that actually relates to taxes. Everything you stated is business as usual for the IRS in a joint return situation. Innocent spouse, which has been discussed a bit in this thread, would be to avoid paying this to the IRS. It sounds like you've decided to pay. If you decide instead to consider innocent spouse, I suggest you re-read Abbi's longer post, including: success is not a sure thing here, and you should weigh the costs of representation accordingly. Your second two paragraphs aren't really income tax questions. They're divorce and/or contract law questions. You might try asking them in the Legal Questions thread.
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Jun 7, 2018 01:22
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incogneato posted:As others have noted, this is really two issues: Yeah, it seems like the innocent spouse route is less related than originally thought. Thanks, everyone, for providing some much needed clarity. Seems like everything being connected makes it hard to see individual pieces for what they are. Thank you!
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Jun 7, 2018 03:11
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The Dickens posted:Which...okay, that seems reasonable to me, but now she's getting sassy about wanting us to go over there and sign something. We of course asked if she could just send it to us because why make the (admittedly short) drive over there just to look at a form we could read just as easily at home? She won't email it, insists we have to go over there and we're not doing it. Now she's worked about it and saying she's getting a lawyer about it tomorrow, even though we're not saying we won't pay it, we just aren't driving over there right this second (especially considering she's dragged her feet on what to do and said she was getting the information together for the last four months but all of a sudden there's a clock ticking.) I don't honestly even know what she needs a lawyer for, I guess we could go to court over this but we're not refusing to pay her, we're just not going to agree to some bananas amount a month on top of $800 in child support. Sorry for the big vomit of our drama, I just really did think that once custody and child support was sorted out we'd be done with this poo poo. This is utterly exhausting. Yeah, this is just a weird thing where she's hoping to get a formal contract or whatever that you're dividing the debt. Not that the IRS cares about it, but it might be helpful in small claims court if it comes to that. What's going to happen, though, is that the IRS is going to set up a payment plan under the primary taxpayer's SSN (whoever was listed first on the return), and as long as the monthly payments are coming in from somewhere, they will be happy. So however you want to arrange that between the two of you is fine, as long as the man receives his due.
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Jun 7, 2018 04:50
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I just got my first CP2000 from the IRS.  The amount they request is absolutely no issue, I could pay it today, but I strongly suspect that they are wrong with their request.I contributed $5500 to an trad IRA, which after vesting was 'backdoored' to a Roth IRA, both with Vanguard. The amount was reported on 15a, while 15b reported 0 with a comment saying "Rollover". The notice from the IRS says that Vanguard reported my $5500 to the IRS as taxable. Did I screw something up in the rollover procedure? Did I fail to submit a form with my tax return showing that this is not taxable? Should I get H&R Block involved given that they prepared my taxes? Thanks in advance for any help. Edit: Vanguard's 1099 form for the tax year in question shows $5500 under taxable amount.? Why am I being taxed? 
theHUNGERian fucked around with this message at 03:44 on Jun 9, 2018 |
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Jun 9, 2018 03:24
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theHUNGERian posted:I just got my first CP2000 from the IRS. I had the same thing happen to me a while back. Call the IRS! They will help you sort it out. Did you send in a form 8606? If not, you probably need to amend with it. Definitely don't double-tax yourself. In my case, actually, the IRS hosed up. We DID have an 8606 on our return and the guy I spoke to on the phone literally went, "Hmm yes there is nothing wrong with your return. Must have been a new hire who checked it and missed it. I'll go ahead and fix that for you." Was painless other than the hold time and having to explain it.
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Jun 9, 2018 03:43
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ExtrudeAlongCurve posted:I had the same thing happen to me a while back. Call the IRS! They will help you sort it out. I did my edit while you posted. Vanguard's 1099 form for the tax year in question shows $5500 under taxable amount. Form 8606 was included in my 1040 and the $5500 shows up on lines 1, 3, 5, 8, 11, 13, 16, and 17, with zeros everywhere else. Is that correct?
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Jun 9, 2018 03:47
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theHUNGERian posted:I did my edit while you posted. Vanguard's 1099 form for the tax year in question shows $5500 under taxable amount. Form 8606 was included in my 1040 and the $5500 shows up on lines 1, 3, 5, 8, 11, 13, 16, and 17, with zeros everywhere else. Is that correct? Mine looked just like that (just checked) so you're good. IRS done hosed up. Call and explain that you included your 8606 and that it should show that it was a rollover and not a distribution. They'll clear it up for you.
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Jun 9, 2018 04:03
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ExtrudeAlongCurve posted:Mine looked just like that (just checked) so you're good. IRS done hosed up. Call and explain that you included your 8606 and that it should show that it was a rollover and not a distribution. They'll clear it up for you. Thanks!
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Jun 9, 2018 04:22
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theHUNGERian posted:I just got my first CP2000 from the IRS. I also got my first CP2000 for the same issue. I just followed the forms instructions to dispute it by sending a letter in the mail detailing my backdoor Roth IRA along with a copy of my Form 8606.
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Jun 9, 2018 17:56
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I ended up calling them, and after 30 minutes on hold, I succinctly summarized myself in three sentences saying: -this is post-tax money -going into a tax-advantaged account (IRA) -line 18 on 8606 shows that the taxable amount is $0. This was sufficient to make the matter go away.  Thanks again for the help
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Jun 12, 2018 01:57
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Also just got my first CP2000 yesterday (for 2016 for some reason). The first part of it is pretty clear - I rolled a SEP IRA from a former employer into my current employer's 401k that year and the CP2000 is treating it as a distribution instead of a rollover. Both accounts are traditional/pretax. I'm sure that will be easy to clear up. The second part, I might have screwed something up - it's claiming my HSA distributions (all of which I used to reimburse qualified medical expenses not covered by insurance) were taxable income. After googling like "HSA distribution tax form" it turns out I was supposed to be filing a form 8889 all this time. Oops. Anyway, unrelated HSA question: I'm not married, but my employer doesn't require marriage to extend health benefits to a significant other*. So I added my girlfriend to my health insurance this year. This also allows me to make contributions up to the $6900 'family' limit, and I've reimbursed both of our medical expenses. Will this cause problems with form 8889 next year if we aren't married? Copy pasting the form 8889 instructions: quote:In general, include on line 15 distributions from all HSAs in 2017 that were used for the qualified medical expenses (see Qualified Medical Expenses, earlier) of: Does 'spouse' include my situation if we aren't married? * I think their requirement was something like 'a committed long term relationship in which financial responsibilities are shared' Illusive Fuck Man fucked around with this message at 14:30 on Jun 22, 2018 |
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Jun 22, 2018 14:26
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Illusive gently caress Man posted:Does 'spouse' include my situation if we aren't married?
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Jun 22, 2018 14:53
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Hoodwinker posted:No. Are you claiming your girlfriend as a dependent? I'm not. Is that a thing? She has her own income and filed separately for 2017.
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Jun 22, 2018 15:21
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Illusive gently caress Man posted:I'm not. Is that a thing? She has her own income and filed separately for 2017. Edit: Looked it up - quote:Family HDHP coverage is an HDHP covering an eligible individual and at least one other individual (whether or not that individual is an eligible individual). So this is super weird. It looks like you're allowed to contribute to the family limit on behalf of your girlfriend but you're not allowed to make distributions from the HSA on her behalf. Hoodwinker fucked around with this message at 16:00 on Jun 22, 2018 |
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Jun 22, 2018 15:46
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Illusive gently caress Man posted:Also just got my first CP2000 yesterday (for 2016 for some reason). The first part of it is pretty clear - I rolled a SEP IRA from a former employer into my current employer's 401k that year and the CP2000 is treating it as a distribution instead of a rollover. Both accounts are traditional/pretax. I'm sure that will be easy to clear up. Illusive gently caress Man posted:Anyway, unrelated HSA question:
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Jun 22, 2018 20:17
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So I'm thinking TurboTax has hosed up all of my latest returns. Background. All of my income is from foreign sources: my own business and, starting in 2017, rental income. I live exclusively outside the US. In 2015 I made a profit. Turbotax filed a 1040, a 2555 and a 1116. In 2016 I ended the year at a slight NOL (but I didn't apply for the EITC). Turbotax filed just a 1040. In 2017 TurboTax filed just a 1040 and a Schedule E for the rental income. 1. For 2015, shouldn't I only have filed either a 2555 or a 1116, not both? 2. For 2016, even if I had no income that year, shouldn't I still have filed a 2555? 3. For 2017, same question as above.
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Jun 23, 2018 20:07
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SiGmA_X posted:Most tax software does all this for you, but you should amend and be good to go. Note for best results, send any amendment to the IRS back with your completed CP2000 response form and "CP2000" on the top of the 1040X, as per here. If you file an amendment at the standard location the audit folks may not catch on to the change. Ur Getting Fatter posted:So I'm thinking TurboTax has hosed up all of my latest returns. Hooooo boy 2015 is a mess, yeah, you only claim foreign earned income exclusion or foreign income tax credit not both. I'm shocked it wasn't flagged by the IRS automatic system unless one of those forms was blank or something. I wouldn't *think* you need 2555 for 2016 though if you have a NOL (if you just have a business then NOL equals no foreign earned income to exclude), though you may have a separate issue if you didn't elect for no carryback on the NOL or file a timely Form 1045 back then. If you don't have any earned income for 2017, just the rental, then don't think you need a 2555 because again no earned income to exclude. Take with a grain of salt since I haven't seen what you actually filed obviously, you're complicated enough getting professional eyes on the return(s) might not be a bad idea. In particular I'd double check Schedule E in 2017 if it's your first time doing one, for some reason I've seen a lot of TurboTax returns for first time renters which have no depreciation on Schedule E which is... pretty terrible when dealing with a rental property.
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Jun 24, 2018 07:54
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MadDogMike posted:Hooooo boy 2015 is a mess, yeah, you only claim foreign earned income exclusion or foreign income tax credit not both. To be clear, if you have income above the foreign earned income exclusion limit, you can apply foreign tax credits to that amount.
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Jun 26, 2018 02:49
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sale on Banksy art posted:To be clear, if you have income above the foreign earned income exclusion limit, you can apply foreign tax credits to that amount. Sorry, important clarification, yeah. Don't need specifics obviously but was your business very high income in 2015? That *might* explain both being present then, I admittedly don't usually see businesses where the after expense portion exceeds the foreign earned income exclusion amount so never actually did both forms.
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Jun 26, 2018 06:54
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Definitely did not have a high enough income in 2015 to go over the FEIE, but looking at the return in more detail, it seems TurboTax used form 1116 to deduct some or part of the Self-Employment taxes I pay in the country where I live. In any case, I think I'll contact a professional and see if I need to amend any or all of this stuff. Thanks for the help! Edit: any recommendations for CPAs that work with expats are more than welcome.
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Jun 26, 2018 14:29
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edit: answered my own question
BlackMK4 fucked around with this message at 02:33 on Jun 27, 2018 |
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Jun 27, 2018 02:07
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Ur Getting Fatter posted:Definitely did not have a high enough income in 2015 to go over the FEIE, but looking at the return in more detail, it seems TurboTax used form 1116 to deduct some or part of the Self-Employment taxes I pay in the country where I live. Taxes that provide a direct benefit, such as health insurance or a pension, are not available for the foreign tax credit. So you might want to look into if you should be including your self-employment taxes at all.
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Jun 27, 2018 03:57
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Any of y'all noticing about 1000% increase in erroneous claims of unpaid tax/penalty/interest being sent out by the IRS? We're getting like a dozen a week from clients and basically none of them make sense; sometimes the notices even contradict themselves. The Service seem to just be hopeful that people will send checks and not question the notices, I guess? I don't know I've only been in this game for a year, maybe it's always been like this.
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Jun 27, 2018 19:59
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I got one from the Commonwealth of Massachusetts claiming that I owned them full year taxes despite the fact that I moved out.
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Jun 27, 2018 20:05
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black.lion posted:Any of y'all noticing about 1000% increase in erroneous claims of unpaid tax/penalty/interest being sent out by the IRS? We're getting like a dozen a week from clients and basically none of them make sense; sometimes the notices even contradict themselves. What do you mean? The IRS sends out the first balance due notices in the beginning of June. If your clients have already paid, in part or in full, the notices might not reflect that.
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Jun 27, 2018 20:20
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For instance, today a client brought a notice saying that an IRA distribution needs to be included in income, even tho the 1099R clearly has Code G in box 7 as it was a direct rollover and that's exactly how it was reported on the return. I don't know maybe I'm just not used to the process, I'm still turning academic knowledge into practical knowledge wrt tax and maybe this is me being naive about how inefficient things are. Things like clients getting a notice to pay in full tax owed, while also getting a notice acknowledging their installment plan and citing the dates that amounts would be auto-drafted from their account. My principal was also mentioning that the number of clients getting notices for amounts they've already paid, or incorrectly suggesting revisions to a return, seems to have gone up. Maybe that's just her perception. Of course clients get these notices and come in hysterical because they think we didn't do their return, or did it wrong. It's just annoying. It's me I'm the one that came here to complain about the IRS being inefficient and how it's not convenient for me personally.
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Jun 27, 2018 21:28
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Probably perception. We expect everything to go fast fast fast with our fancy new computers, while the IRS is still relying on the finest computers that were rejected by the 1960s military as being wholly inadequate for their needs.
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Jun 27, 2018 23:04
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