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I just found a 2006 refund check for a few hundred dollars from the IRS to my wife while going through her parents files. Is there any way of getting that refund after all this time?
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Nov 8, 2021 00:59
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Jose Cuervo posted:I just found a 2006 refund check for a few hundred dollars from the IRS to my wife while going through her parents files. Is there any way of getting that refund after all this time? Nope, refunds after 3 years are gone, too bad so sad.
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Nov 8, 2021 05:55
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Epi Lepi posted:Nope, refunds after 3 years are gone, too bad so sad. Ok, thanks.
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Nov 8, 2021 14:25
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furthermore, refund checks expire after a year
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Nov 12, 2021 20:13
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sullat posted:furthermore, refund checks expire after a year
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Nov 12, 2021 21:59
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Peyote Panda posted:Just for the future reference of anyone else who runs into this issue, you can call to get a refund check reissued if it's expired (and these days the IRS will usually send a notice that states, "your refund check expired, call us to get a new one"), but regardless the refund itself has to be claimed within three years of the original due date of the return. In other words if you have a refund for your 2016 return, which would have been filed in 2017, you would have to cash the refund check or otherwise receive the funds by 2020. If the three-year window passes without you actually getting the refunds, it goes back into the general Treasury fund to support the people who really need it such as predatory banks or MIC contractors murdering brown people both domestically and abroad. Thinking on this a little more, the hard three years deadline to "claim" a refund refers to filing the return. As long as the return is filed timely, the three year deadline has been met. Now eventually the credit will be swept away to excess collections, but it doesn't necessarily take place at the three year mark. I recall very recently getting the IRS to honor a refund from 2006 on one of my cases, but there were very unusual circumstance (which I won't be getting into here obviously).
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Nov 13, 2021 00:08
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sullat posted:Thinking on this a little more, the hard three years deadline to "claim" a refund refers to filing the return. As long as the return is filed timely, the three year deadline has been met. Now eventually the credit will be swept away to excess collections, but it doesn't necessarily take place at the three year mark. I recall very recently getting the IRS to honor a refund from 2006 on one of my cases, but there were very unusual circumstance (which I won't be getting into here obviously).
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Nov 13, 2021 01:14
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I'm examining my pay information for the year and it sure looks like my employer hasn't been withholding enough federal income tax. I think I'm on pace to miss both of the safe harbor provisions! Can I just quickly have them jack up withholding for my last two or three paychecks to try to fix this, or should I try to make a direct payment to the IRS? Will either of those work? Should I just talk to my tax preparer about this? Also, I don't understand how this could have happened. I didn't claim any exemptions on my W-4, and I assumed that the withheld amount would therefore be sufficient. Am I going to need to start explicitly requesting greater withholding on a regular basis?
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Nov 14, 2021 17:08
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raminasi posted:I'm examining my pay information for the year and it sure looks like my employer hasn't been withholding enough federal income tax. I think I'm on pace to miss both of the safe harbor provisions! Can I just quickly have them jack up withholding for my last two or three paychecks to try to fix this, or should I try to make a direct payment to the IRS? Will either of those work? Should I just talk to my tax preparer about this? Do you just have straight salary? Or is there a significant non-salary source of income? Are you married dual income? What does your employer have down as your w-4 information? It's possible that they messed it up. You can jack your withholding or make a payment. Either is fine.
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Nov 14, 2021 17:44
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H110Hawk posted:Do you just have straight salary? Or is there a significant non-salary source of income? Are you married dual income? What does your employer have down as your w-4 information? It's possible that they messed it up. Straight salary, filing single, no kids. My employer has me down with zero W-4 exemptions (at least on their website).
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Nov 14, 2021 18:00
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raminasi posted:Straight salary, filing single, no kids. My employer has me down with zero W-4 exemptions (at least on their website). I would go have a conversation with hr before doing anything. That should be impossible to underwithold.
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Nov 14, 2021 18:17
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H110Hawk posted:I would go have a conversation with hr before doing anything. That should be impossible to underwithold. It should be but I had an issue the past year with employers withholding NO federal withholding, I think people are accidentally filling the forms out in ways that led to the employer reading it as 0 withholding instead of 0 exemptions. Not a one off issue either. gently caress the new W-4 all its been is a massive headache.
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Nov 15, 2021 21:44
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Epi Lepi posted:It should be but I had an issue the past year with employers withholding NO federal withholding, I think people are accidentally filling the forms out in ways that led to the employer reading it as 0 withholding instead of 0 exemptions. Not a one off issue either. Yeah. Presuming a correctly filled out and processed W-4 it should be impossible. Mistakes on the other hand... The 0 withholding sounds like a nightmare. I recently learned from reddit that some states don't require paystubs. It seems like such a low burden. I can't imagine getting to April of the following year when people who are bad at paystubs see themselves oweing 15% of their take home back to the government. Also people read your drat paystubs! I have mine mailed to me for just this reason!
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Nov 16, 2021 00:15
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I read my paystubs and problem was actually that I was an idiot in a different way: I’d been comparing my taxes withheld this year to my total tax last year and seeing that it was substantially lower but forgetting about the signing bonus I got last year that significantly raised that year’s income  Using an actual tax estimator put me on the track to realize the discrepancy.
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Nov 16, 2021 15:35
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raminasi posted:I read my paystubs and problem was actually that I was an idiot in a different way: I’d been comparing my taxes withheld this year to my total tax last year and seeing that it was substantially lower but forgetting about the signing bonus I got last year that significantly raised that year’s income You aren't the first and you certainly won't be the last.
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Nov 16, 2021 20:04
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OK, somebody at the IRS who might know, if having the AFTR and a signed 2848 power of attorney for a return you personally prepared (and marked third party authorization on) is insufficient to ask the question “your efile system claims you have the return but it’s been months and when the client called you said it wasn’t there, what is the actual status?”, what the gently caress actually is sufficient?! Apparently I can only contact them if there’s a letter, so I guess I can only help if the IRS actually deigns to notice there’s a problem and contacts us demanding money instead of ignoring us. So drat irritated the IRS is apparently unwilling to talk to preparers even when they jump through levels of unreasonable bullshit set up because the IRS only wants to talk if they think they can squeeze payment out of the conversation. I’m planning to take the EA exams next year, but I suspect even that won’t make them better at cooperating.
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Nov 18, 2021 18:55
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MadDogMike posted:OK, somebody at the IRS who might know, if having the AFTR and a signed 2848 power of attorney for a return you personally prepared (and marked third party authorization on) is insufficient to ask the question “your efile system claims you have the return but it’s been months and when the client called you said it wasn’t there, what is the actual status?”, what the gently caress actually is sufficient?! Apparently I can only contact them if there’s a letter, so I guess I can only help if the IRS actually deigns to notice there’s a problem and contacts us demanding money instead of ignoring us. So drat irritated the IRS is apparently unwilling to talk to preparers even when they jump through levels of unreasonable bullshit set up because the IRS only wants to talk if they think they can squeeze payment out of the conversation. I’m planning to take the EA exams next year, but I suspect even that won’t make them better at cooperating. First, either the 2848 POA or the third party designee by themselves should be sufficient to answer your questions. If the return's been efiled we should be able to pull up and verify your TPD even if the return hasn't been processed yet. Second, if the efile was not rejected but has not been processed, we should be able to give you some idea what's going on even if we don't have details. One of the most frequent issues in the circumstance you're describing is that the return was flagged for the Errors Resolution System by the efile system. In a lot of cases a phone assistor can see that it was pulled because there was something the automated system could not handle but not what the specific issue or issues are. That part doesn't become clear until an actual person at the processing center looks at it and can either sort it out and move forward with processing or identify what additional information is needed and issue a 12C letter asking for specific additional info. That part's taking months longer than usual due to the overall backlog. In those pulled-but-not yet-reviewed cases, sometimes a phone assistor can figure out what might be the issue by process of elimination ("The 1040 shows Schedule C income but there's no Schedule C attached.") but even then there may be other issues that aren't immediately obvious. Still, the phone assistor should be able to at the very least be able to say that the return is under review and we'll either get it processed as soon as possible or send a notice if more information is needed. And as a delightful head's up for you preparers out there, next year is looking markedly worse. All of the ad hoc items like the Advance Child Tax Credit are likely going to be even more of a reconciliation clusterfuck than the RRC and we'll probably have even less staff to deal with it. Last I heard, about 20% of our staff organization-wide is uncompliant with the vaccine mandate, about 30-40% of our total workforce is near or at retirement age, and our recruiting efforts were an abyssmal shitshow. On average I think we only filled about 40% of the open positions and who knows how many of those new recruits will last all the way through training. My local site started with about 18 of the 50 new hires we were shooting for and that's now down to 8 though we might get some more later on.
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Nov 18, 2021 19:53
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If the return is bogged down in TPP than third party designees are poo poo out of luck
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Nov 18, 2021 20:27
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A client of mine got one of those "Call us now to verify your identity so we can process your return" letters , the LTR 4883C letter. Every time they call they get the "high call volume, call back later *click*" response. What can they do besides just keep trying? They've been trying for weeks at all different times of day.
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Nov 18, 2021 21:45
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Epi Lepi posted:A client of mine got one of those "Call us now to verify your identity so we can process your return" letters , the LTR 4883C letter. Every time they call they get the "high call volume, call back later *click*" response. What can they do besides just keep trying? They've been trying for weeks at all different times of day. Try to make an appointment at a TAC office
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Nov 18, 2021 22:16
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sullat posted:Try to make an appointment at a TAC office You might get lucky and get a burned-out appointment line assistor that will set up the appointment regardless but a lot of times those people also fail to properly book the appointment and/or fail to advise the TP of other issues that need to be addressed so they show up for the appointment missing important documents or information for full account resolution. The TACs have been getting a lot of those appointments this year.
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Nov 18, 2021 22:30
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Peyote Panda posted:Last I heard, about 20% of our staff organization-wide is non-compliant with the vaccine mandate, about 30-40% of our total workforce is near or at retirement age, and our recruiting efforts were an abysmal shitshow. On average I think we only filled about 40% of the open positions and who knows how many of those new recruits will last all the way through training. My local site started with about 18 of the 50 new hires we were shooting for and that's now down to 8 though we might get some more later on. LOL LMAO Peyote Panda fucked around with this message at 00:29 on Nov 19, 2021 |
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Nov 18, 2021 22:36
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Peyote Panda posted:Oh, goody, the IRS Commissioner's been advising Congress that at our current attrition rate we're projected to lose 52,000 employees over the next 6 years. Out of a current staffing total of 81,000. drat, maybe if I get my EA I should apply for a job, might get hired as commissioner at this rate  .
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Nov 19, 2021 02:46
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Well, hopefully the boost to IRS funding stays in the bill and it passes, its truly ridiculous how underfunded the Service is, especially given the number of programs they're expected to administer, such as COVID relief, not to mention actually audit anyone.
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Nov 19, 2021 04:30
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I have a few questions about the US gift tax that I'm hoping I can get some clarity on. Based on this link here - https://smartasset.com/retirement/gift-tax-limits - the 2021 annual gift tax exclusion is $15,000. The example below shows if person A was to gift person B $215,000, then $200,000 will be taxable. However, the IRS will consider it as part of the Lifetime Gift Tax Exemption Limit of $11.7m. So am I correct that the $200,000 will not be taxed as IRS will deduct it from Person A's Lifetime Gift Tax Exemption Limit? I am a little confused as further down on the page, there is a section for "How to Calculate the Gift Tax" where it says $150,001 to $250,000 is 32%.
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Nov 25, 2021 09:37
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Busy Bee posted:So am I correct that the $200,000 will not be taxed as IRS will deduct it from Person A's Lifetime Gift Tax Exemption Limit? Correct. Anything over $15,000 per person per year is REPORTING ONLY until you've reached the lifetime limit. The general guidance is that if you need to worry about the estate/gift tax (as in actually ever being in danger of PAYING anything) you won't be asking here because someone in your full time staffed "family office" that manages your wealth would have been able to provide this information to you. And they'll have already set up a series of blind trusts in south dakota to insure it doesn't happen.
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Nov 25, 2021 17:42
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Busy Bee posted:I have a few questions about the US gift tax that I'm hoping I can get some clarity on. You're technically correct. You add up your lifetime of gifts and subtract it from $11.7m. If you manage to get it to 0 you start applying tax rates. First you need to gift $11.7m (double if you're married!) then those rates apply.
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Nov 25, 2021 18:35
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You made me curious so I perused form 709. There is a section for deceased spouses, where you can claim their lifetime exclusions. There are 7 lines in the regular form, so you can have 7 deceased spouses (77 million) before you have to attach an extra page. So now I'm imagining a rich person trolling the nursing home, looking to marry people who are about to die. Happy thanksgiving!
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Nov 25, 2021 20:33
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edit
Busy Bee fucked around with this message at 08:55 on Nov 27, 2021 |
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Nov 27, 2021 08:49
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In continuation of my previous question about the US gift tax, what would the tax implication be if a parent sells a home and deposits the full sale amount to their child's bank account? I'm assuming that the child will now be liable for any taxes from the proceeds of the sale. Would this deposit still be considered a gift even though it is directly from the escrow company?
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Nov 29, 2021 20:50
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Busy Bee posted:In continuation of my previous question about the US gift tax, what would the tax implication be if a parent sells a home and deposits the full sale amount to their child's bank account? I'm assuming that the child will now be liable for any taxes from the proceeds of the sale. Would this deposit still be considered a gift even though it is directly from the escrow company? Any tax consequences from the sale of an asset (such as a house) are on the seller. You can't deposit the proceeds in someone else's account in order make them responsible for the taxes. That's called assignment of income and is not permitted. The transfer of the money to the kids would presumably be a gift.
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Nov 29, 2021 21:02
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Busy Bee posted:In continuation of my previous question about the US gift tax, what would the tax implication be if a parent sells a home and deposits the full sale amount to their child's bank account? I'm assuming that the child will now be liable for any taxes from the proceeds of the sale. Would this deposit still be considered a gift even though it is directly from the escrow company? Conversion of an assert to cash is the taxable event. The parents owe any taxes on gains from the sale. It doesn't matter where they deposit the check. And yes, it's a gift. There aren't any "one weird trick"s here. It's transparently obvious what's going on. You can't just foist your real property tax burden on someone because you handed them a check/sent them a wire.
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Nov 29, 2021 21:02
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Busy Bee posted:In continuation of my previous question about the US gift tax, what would the tax implication be if a parent sells a home and deposits the full sale amount to their child's bank account? I'm assuming that the child will now be liable for any taxes from the proceeds of the sale. Would this deposit still be considered a gift even though it is directly from the escrow company? Motronic posted:There aren't any "one weird trick"s here. That's baloney, it's way better if they die owning the home. That sweet sweet step up in basis.
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Nov 29, 2021 21:16
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Do escrow agents even let you deposit the funds on an account not owned (or jointly owned) by the seller? I thought AML regulations had shut that down.
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Nov 29, 2021 21:37
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Just wanted to confirm something that I may have heard somewhere, definitely not from anyone here. Say I do a rough draft of my taxes on February 1st, and find out I owe $x. Say I make a payment of $x - 1000 dollars on February 2nd. I then redo my taxes on February 3rd, taking into account the payment of $x I just made. Is the IRS happy?
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Nov 29, 2021 22:03
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https://www.irs.gov/faqs/estimated-tax/individuals/individuals-2quote:For estimated tax purposes, the year is divided into four payment periods. Each period has a specific payment due date. If you don't pay enough tax by the due date of each payment period, you may be charged a penalty even if you're due a refund when you file your income tax return at the end of the year. "may"
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Nov 29, 2021 22:46
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Residency Evil posted:Just wanted to confirm something that I may have heard somewhere, definitely not from anyone here. Check Form 2210 if you want the (excruciating) details on the penalty for under-withholding. And in this case doing what you said is kind of pointless; the payment you made in February won't make a bit of difference to the penalty calculation, you're just pushing numbers around for no real benefit. Can't exactly fool the IRS when they received the money, it's going to THEM after all (they may occasionally misplace which account it goes to, but minus the ol' "check lost in mail" issue I've never seen them really have trouble finding a payment when you have the info on timing and amount). Finally set up an ID.me account with the IRS; it was a pain but at least this method had SOME effective way to get around the fact my cell phone is registered under my family's name and not mine (had to web-chat and show my license and passport, and wait forever, but at least it worked eventually). I know I can look up my transcripts and such and do the child tax credit stuff if it applied (no kids here); anything else it's set up to do, preparer stuff in particular? Grabbed it because I heard they were moving to that over the old login system, was wondering if anything else has migrated to using it I should try out.
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Nov 30, 2021 03:26
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MadDogMike posted:Check Form 2210 if you want the (excruciating) details on the penalty for under-withholding. And in this case doing what you said is kind of pointless; the payment you made in February won't make a bit of difference to the penalty calculation, you're just pushing numbers around for no real benefit. Can't exactly fool the IRS when they received the money, it's going to THEM after all (they may occasionally misplace which account it goes to, but minus the ol' "check lost in mail" issue I've never seen them really have trouble finding a payment when you have the info on timing and amount). Perhaps the person that posted here about that method might add their experience?
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Nov 30, 2021 04:10
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If you have an estimate just pay it at 100%. If you're in the safe harbor wait for your cpa. I think I've paid around $100 total in interest to the IRS but I get the forms in on time for years where I owe. Not always the estimated payments but I run the safe harbor calc and pay that as a absolute minimum.
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Nov 30, 2021 06:33
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H110Hawk posted:If you have an estimate just pay it at 100%. If you're in the safe harbor wait for your cpa. I think I've paid around $100 total in interest to the IRS but I get the forms in on time for years where I owe. Not always the estimated payments but I run the safe harbor calc and pay that as a absolute minimum. I usually do my own taxes. This year is just tough because we moved states, got raises, got bonuses, and moved to jobs that restarted withholding SS taxes again.
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Nov 30, 2021 12:23
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