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obi_ant
Apr 8, 2005

incogneato posted:

I've been happy with freetaxusa.com, and I've heard similar from other people here. Don't be put off by the sketchy name, it's a solid platform (although I've never had anything especially complex).

I also suggest FreeTaxUSA. Code 'FREETAXUSA10' for 10% off, the place to enter tyhe code is hidden on the bottom right corner of the payment screen.

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Covok
May 27, 2013

Yet where is that woman now? Tell me, in what heave does she reside? None of them. Because no God bothered to listen or care. If that is what you think it means to be a God, then you and all your teachings are welcome to do as that poor women did. And vanish from these realms forever.

Yak Shaves Dot Com posted:

Starts in 2008, goes up to this last year. Multiple tax years. It's excruciating to contemplate.

Honestly speaking? I might get poo poo on for this, but like the statute of limitations has passed for most of those years. Like, practically all of them. It wasn't intentional either so the facts of the case probably means you don't really need to worry about maybe 3 to 6 years.

For some reason I can't paste the url to irs.gov's page on audits. My phone won't let me. But really most of those years are outside the audit period. The facts of the case make this sound like an honest mistake so an auditor really doesn't have jurisdiction to go that far back. How big is it per year too? If it's not a huge bill the irs probably won't care past 3 years. They really only care farer than 3 for big bills and only farer than 6 if its intentional fraud.

Gabriel Grub
Dec 18, 2004

Covok posted:

Honestly speaking? I might get poo poo on for this, but like the statute of limitations has passed for most of those years. Like, practically all of them. It wasn't intentional either so the facts of the case probably means you don't really need to worry about maybe 3 to 6 years.

Nothing to poo poo on. This is the correct answer.

Epi Lepi
Oct 29, 2009

You can hear the voice
Telling you to Love
It's the voice of MK Ultra
And you're doing what it wants

Covok posted:

Honestly speaking? I might get poo poo on for this, but like the statute of limitations has passed for most of those years. Like, practically all of them. It wasn't intentional either so the facts of the case probably means you don't really need to worry about maybe 3 to 6 years.

For some reason I can't paste the url to irs.gov's page on audits. My phone won't let me. But really most of those years are outside the audit period. The facts of the case make this sound like an honest mistake so an auditor really doesn't have jurisdiction to go that far back. How big is it per year too? If it's not a huge bill the irs probably won't care past 3 years. They really only care farer than 3 for big bills and only farer than 6 if its intentional fraud.

Yeah this is correct. OP should just pretend they do not see it and move on with their life.

Yak Shaves Dot Com
Jan 5, 2009
That's actually a huge relief. So I guess file this year's, and then amend the two most recent years, and see if they get back to me?

Edit: or maybe just submit like normal this year?

Gabriel Grub
Dec 18, 2004
I would amend at least two years back.

Peyote Panda
Mar 10, 2019

blue squares posted:

Thank you for taking the time to write this!
Sure, and I hope it helps! FWIW, discrepancies in W2 income reporting are pretty common (though usually it's because the employer either filed an incorrect W2 or didn't file one at all) so it might take a while to sort out just because of the overall processing delays but at least it's a routine circumstance so the procedures are fairly straightforward once you know where things are in the pipeline.

MadDogMike posted:

Question for folks out here; I’ve got somebody who received a 1099-INT after we filed (a piddly little amount from IRS for the late payment for 2020). I punched it in and confirmed it has literally no impact on the bottom line of their 1040. Do we need to actually bother sending an amendment for this? I was under the impression the IRS wouldn’t appreciate the extra work for zero impact and they probably won’t even send a letter demanding zero dollars payment.
Something like this where it's a simple minor discrepancy in reported total income that doesn't even affect the actual tax balance shouldn't trigger anything. Most of our filters during processing are looking for discrepancies with W2 wages and withholding and AUR wouldn't even bother with it later on if the discrepancy is minimal and the actual effect on tax is nil.

You mentioning this also made me realize we're probably going to see a gently caress-ton of this as credit interest was issued for a lot of refunds last year, but fortunately most of them will probably be as minimal as what you're talking about.

Covok posted:

For some reason I can't paste the url to irs.gov's page on audits. My phone won't let me. But really most of those years are outside the audit period. The facts of the case make this sound like an honest mistake so an auditor really doesn't have jurisdiction to go that far back. How big is it per year too? If it's not a huge bill the irs probably won't care past 3 years. They really only care farer than 3 for big bills and only farer than 6 if its intentional fraud.
Generally speaking you can only go back three years for amendments in any case, and 1099-DIVs also get reported to the IRS so if there were problems with them not being reported on your returns you would have probably already gotten notices about them.

And just as a general note, something like this isn't going to get the IRS to go after you like a criminal. It's a normal unintentional error so it just be a case of getting the record sorted and paying off any extra tax. You actually have to be very intentionally loving the system over big time to start looking at anything like criminal charges.

Kefit posted:

I initially filed for unemployment benefits in November 2020. However, due to the very high volume of unemployment claims at that time, my claim was not actually approved until early 2021. I received my first unemployment payment in the first few days of January 2021. This payment included several thousand dollars in backpay for all the weeks of under/unemployment I experienced in November and December of 2020.

Unfortunately, this means that all of the unemployment payments I should have gotten in November and December 2020 instead got paid out to me as 2021 unemployment income. Since 2021 unemployment income is taxable as normal, this means that I'm looking at several thousand dollars of 2021 taxable income that wouldn't exist if the state had been a week or so faster in processing my unemployment claim.

My intuition is that there's nothing I can really do about this, at least nothing that would be worth the time and money involved. But if anyone thinks differently, let me know.
Unfortunately, I couldn't find anything that would get you around that. Even if the benefits were for time periods in 2020, if you received the payments in 2021 that's the year the income falls under.

MadDogMike
Apr 9, 2008

Cute but fanged

Peyote Panda posted:

Something like this where it's a simple minor discrepancy in reported total income that doesn't even affect the actual tax balance shouldn't trigger anything. Most of our filters during processing are looking for discrepancies with W2 wages and withholding and AUR wouldn't even bother with it later on if the discrepancy is minimal and the actual effect on tax is nil.

You mentioning this also made me realize we're probably going to see a gently caress-ton of this as credit interest was issued for a lot of refunds last year, but fortunately most of them will probably be as minimal as what you're talking about.

Ouch, probably true, although if it’s any consolation most of our folks have been remembering and bringing them in to include, person in question just got hit with the ol’ “form came in the mail after filing” issue. Kind of prevalent this time of year, had one client who thought they would be missing a 1099-R except the postman literally pulled up with it right before they left for their appointment.

quote:

And just as a general note, something like this isn't going to get the IRS to go after you like a criminal. It's a normal unintentional error so it just be a case of getting the record sorted and paying off any extra tax. You actually have to be very intentionally loving the system over big time to start looking at anything like criminal charges.

Yeah, the IRS is quite familiar with how people can screw up on taxes without having any criminal intent, so they don’t haul out the handcuffs for everything. Generally if they go after you for jail time, it’s something anybody should reasonably have realized was criminal behavior (boy, kind of disturbing how blatantly so in most cases I know of). Errors may drat your pocket book, but not you, and pretty sure even then their debt collectors have nicer rules than things like student loan stuff from what I gather.

Covok
May 27, 2013

Yet where is that woman now? Tell me, in what heave does she reside? None of them. Because no God bothered to listen or care. If that is what you think it means to be a God, then you and all your teachings are welcome to do as that poor women did. And vanish from these realms forever.
Yeah. I am an over-sharer. I always explain extra bits of info just in case they matter. And to deter people from future mistakes. Had a lot of "you said" stuff in my early years where I only said the relevant info and they ran off that to mean it applied to every possible scenario.

Missing Donut
Apr 24, 2003

Trying to lead a middle-aged life. Well, it's either that or drop dead.

Omne posted:

I actually received the money in April 2021, but that date is not included in the 1099-B; the only date is in box 1c and it's the initial 12/2020 date.

That's a weird reporting, for sure. But I suppose, if $53 is the actual dollar amount then it's not like it's a big deal either way.


Kefit posted:

My intuition is that there's nothing I can really do about this, at least nothing that would be worth the time and money involved. But if anyone thinks differently, let me know.

Taxwise, no. Unemployment is based on the year of the benefit payment. If it makes you feel any better (it won't) many states try to hamstring their unemployment divisions so that they pay out less benefits, keeping the stated unemployment rates and the employer taxes low. Maybe complain to your state-level elected officials?


MadDogMike posted:

Kind of prevalent this time of year, had one client who thought they would be missing a 1099-R except the postman literally pulled up with it right before they left for their appointment.

Yep. I had a client appointment this morning, and after the meeting the client went home and found a tax form in his mailbox.

Covok
May 27, 2013

Yet where is that woman now? Tell me, in what heave does she reside? None of them. Because no God bothered to listen or care. If that is what you think it means to be a God, then you and all your teachings are welcome to do as that poor women did. And vanish from these realms forever.

Missing Donut posted:

That's a weird reporting, for sure. But I suppose, if $53 is the actual dollar amount then it's not like it's a big deal either way.

Taxwise, no. Unemployment is based on the year of the benefit payment. If it makes you feel any better (it won't) many states try to hamstring their unemployment divisions so that they pay out less benefits, keeping the stated unemployment rates and the employer taxes low. Maybe complain to your state-level elected officials?

Yep. I had a client appointment this morning, and after the meeting the client went home and found a tax form in his mailbox.

I don't file immediately for this reason. I always hold the returns for additional documents even post review, especially this early. Saved my rear end more than once. Usually just a day or two. No one notices since it doesn't noticeably delay a refund.

Missing Donut
Apr 24, 2003

Trying to lead a middle-aged life. Well, it's either that or drop dead.

Covok posted:

I don't file immediately for this reason. I always hold the returns for additional documents even post review, especially this early. Saved my rear end more than once. Usually just a day or two. No one notices since it doesn't noticeably delay a refund.

Yeah, I do the exact same thing. Unless there's a deadline looming, I let returns age a day or two before submitting. Not more than three days, though, don't worry IRS lurkers.

obi_ant
Apr 8, 2005

Finished my taxes last night, everything was accepted by both Federal and State and I paid everything electronically. Unfortunately, my wife forgot that she worked an extra month during the summer and will be receiving a 1099-NEC over $600.

FreeTaxUSA posted:

The IRS will often automatically make a correction to your tax return for missing or incorrect W-2s or 1099s. You don't need to amend your federal tax return if the IRS corrects the error when they process your original tax return. You'll receive an IRS notice explaining the adjustment or asking for additional forms for documentation.

They'll simply send me a bill for the missing taxes? Does this also work at a state level? As far as the actual amended return goes, am just doing another tax return with the corrected information?

MadDogMike
Apr 9, 2008

Cute but fanged

obi_ant posted:

Finished my taxes last night, everything was accepted by both Federal and State and I paid everything electronically. Unfortunately, my wife forgot that she worked an extra month during the summer and will be receiving a 1099-NEC over $600.

They'll simply send me a bill for the missing taxes? Does this also work at a state level? As far as the actual amended return goes, am just doing another tax return with the corrected information?

An amendment uses Form 1040X to supply the corrections if you file one. I don't think the IRS has finalized the form for this year judging by how my system yelled at me for testing it with the client I mentioned, but most software can let you go back and file an amendment if you used it to file originally, and for this year and 2020 you can submit them by e-file to boot, so once they've nailed down the requirements on the 1040X you can do that. States generally either have their own amendment forms (which to my knowledge generally need to be mailed in, no e-file there sadly) or there's an option to mark a regular return form as an amendment and basically do the return "correctly" on the form with some amendment-specific information entered on a separate schedule. I would not count on the state to bill you for the missing taxes; in my experience it's kind of a crap shoot if they notice before you miss the deadline and have to pay interest on them noticing (a lot of them seem to only catch it after the IRS does too). Honestly I'm leery of expecting even the IRS to necessarily catch it on their own in time given how much trouble they've been having; if they send you a letter about it soon you're fine (they'll adjust the refund themselves), but if you get your refund without comment definitely file an amendment before April 15th and pay them rather than wait for it to pop up later.

Skinnymansbeerbelly
Apr 1, 2010
Is the California Golden State Stimulus II (AKA GavBux) considered taxable income for my federal tax return? It's the last stub in my envelope that doesn't have a 1099.

Killer_B
May 23, 2005

Uh?
With regards to solutions such as FreeTaxUSA, am I being a bit too paranoid about using a solution that's strictly online-only? (web-based)

I used TaxAct for many years, but the cost for their downloadable software is seriously exorbitant, putting it mildly. And the other major players aren't necessarily a great deal better....Intuit appears to be worse though.

Just thought I'd ask before giving it a try, I'm a bit of a pleb when it comes to tax filing from a web-based cloud platform. (If that's even the best way to describe it?)

smackfu
Jun 7, 2004

One perspective is that most of the source data is coming from online apps nowadays, so you are already exposed to those threats even if you use offline tax prep software.

Covok
May 27, 2013

Yet where is that woman now? Tell me, in what heave does she reside? None of them. Because no God bothered to listen or care. If that is what you think it means to be a God, then you and all your teachings are welcome to do as that poor women did. And vanish from these realms forever.
Honestly, a lot of payroll companies are websites to avoid people just using the same download software forever so your employer is already putting it at risk.

BIG HEADLINE
Jun 13, 2006

"Stand back, Ottawan ruffian, or face my lumens!"
Okay, this isn't a question about me, but I've been press-ganged by my mother to "ask as many lawyers and accountants that I know" about this.

My father works for the DoD and his personal information was compromised in the gigantic hack a few years back. Over the past 2-3 years he's been getting 1099-K forms from eBay and PayPal for an eBay (and PayPal) account he *does not own* - he doesn't even have a personal account on either service. My mother handles the finances of their household and over the past two years she's had to contact both eBay and PayPal's support divisions countless times to get them to zero out these fraudulent tax returns so he doesn't have to pay tax for transactions and profit he didn't make.

Well, today she got a new eBay 1099-K after a long lull for ~$2700, and she asked me to ask "lawyers and accountants" what she should do, because her tax preparer told her "never contact the IRS about anything until the IRS contacts *you* about something." Obviously eBay and PayPal are inept or unwilling to put a "flag" in their system that whenever my father's name/SSN/address comes up, to flag the transaction as fraudulent, even though this is something like the fourth, fifth, or *sixth* time this has happened, between eBay and PayPal 1099-Ks.

She's kept all the records along with whom she's spoken (which is a feat unto itself as it's nigh impossible to get a human on the phone at either company) to at eBay, PayPal, the scumbag collection agencies for both, but I'm telling her that she should consult a tax attorney since no one seems to be moving the needle. Does anyone else have any good advice? Thanks in advance for any answers, advice, or assistance.

BIG HEADLINE fucked around with this message at 19:04 on Feb 5, 2022

Raere
Dec 13, 2007

I've always used the 'Free Fillable Forms' system for both federal and state to file my taxes because I'm over all of the thresholds for free filing through third party apps and I'm completely comfortable filling out my own forms (I used to print and mail them in before that system existed)

It looks like starting this year that system is only available for federal. My state (MA) has no information about that system this year, and other states straight up say they don't offer it this year. In addition, apparently there's some rule (not sure if it's state or federal) where you MUST e-file both federal and state together, you can't just do state. So I can't even find a low cost third party e-filer and file state for $10.

Of course I can print the state forms, but the MA ones are awful as the PDFs aren't fillable - you have to print them and write in pen. Yes, the amount of money it costs to file both federal and state from a low cost third party app is a pittance, but it's a principle thing for me. I don't want to give these companies one cent when I'm perfectly capable of filling out my own forms. I actually enjoy doing it, it lets me see what I might be eligible for but not taking advantage of, or other changes I need to be aware of next year, etc. It just seems crazy to have to go backwards and mail in forms again. And it's outrageous that I have to pay when filing digitally is easier on both sides.

I don't think there is a solution here, I just wanted to vent and let others who might be in the same situation know what I've discovered.

Covok
May 27, 2013

Yet where is that woman now? Tell me, in what heave does she reside? None of them. Because no God bothered to listen or care. If that is what you think it means to be a God, then you and all your teachings are welcome to do as that poor women did. And vanish from these realms forever.
I am always so confused at the forms the IRS can't efile yet. I completely get why 8915-F isn't ready yet as it's a completely new form, but why isn't the passive activity loss form ready when it hasn't changed in years?

Guy Axlerod
Dec 29, 2008

Raere posted:



Of course I can print the state forms, but the MA ones are awful as the PDFs aren't fillable - you have to print them and write in pen.

If you use the Adobe Acrobat Reader (the free one) software you can fill out any forms that exist as pdf, even if they aren't "fillable". You can just drop text wherever, and it often detects the boxes for you to size the text to fit.

Guy Axlerod fucked around with this message at 21:06 on Feb 5, 2022

H110Hawk
Dec 28, 2006

BIG HEADLINE posted:

Okay, this isn't a question about me, but I've been press-ganged by my mother to "ask as many lawyers and accountants that I know" about this.

My father works for the DoD and his personal information was compromised in the gigantic hack a few years back. Over the past 2-3 years he's been getting 1099-K forms from eBay and PayPal for an eBay (and PayPal) account he *does not own*

He needs to get a police report and probably send a sternly worded letter to their legal notice address with it. This crossed into lawyer territory with the second IRS form.

He should consider opening a legitimate account with them. That would hopefully lock out others from it. Setup totp 2fa, unique stupidly long password on a post it note, and call it a day.

Raere
Dec 13, 2007

Covok posted:

I am always so confused at the forms the IRS can't efile yet. I completely get why 8915-F isn't ready yet as it's a completely new form, but why isn't the passive activity loss form ready when it hasn't changed in years?

Yeah my husband and I had a complex tax year for 2020 and had to file on paper because the e-file system wouldnt take what we needed to provide. They're already so backed up, surely it would be less effort overall to enable additional forms so that less people are mailing in and the associated overhead with that?

Guy Axlerod posted:

If you use the Adobe Acrobat software you can fill out any forms that exist as pdf, even if they aren't "fillable". You can just drop text wherever, and it often detects the boxes for you to size the text to fit.

Thank you, that's a good suggestion. I may be able to get a license through work.

Guy Axlerod
Dec 29, 2008

Raere posted:



Thank you, that's a good suggestion. I may be able to get a license through work.

The free version is fine.

BIG HEADLINE
Jun 13, 2006

"Stand back, Ottawan ruffian, or face my lumens!"

H110Hawk posted:

He needs to get a police report and probably send a sternly worded letter to their legal notice address with it. This crossed into lawyer territory with the second IRS form.

He should consider opening a legitimate account with them. That would hopefully lock out others from it. Setup totp 2fa, unique stupidly long password on a post it note, and call it a day.

The 1099-Ks have, thus far, only been sent out by eBay, PayPal, and in one instance, a scumbag collection agency in the employ of both of them. It hasn't progressed to the point where the IRS is telling him he's delinquent in paying taxes for the sales he never made with the account he doesn't own, since they've been zeroed out and my mother always insists that either company furnish her with a *corrected* 1099-K.

The only reason he *hasn't* set up an account is that one of the linchpins of their "defense" thus far has been being able to demonstrably prove he *doesn't* have an account, but maybe you're right. But eBay and PayPal are loving worthless in that you have to have an account to semi-easily communicate with a human being. I had to use *mine* and then spend the better part of half an hour trying to explain to the rep that this incident wasn't tied to *my* account, but rather a fraudulent one when it happened the first time.

It goes deeper, too - last year they started getting eBay *returns* mailed to their house. I intervened there as well and contacted the US Postal Investigation Service and the regional Postmaster General, as well as getting in touch with eBay because in that instance it compromised their *home* because when the returner didn't get their money back, I'm sure they would Google my father's name and quite easily find their landline number. I also wanted eBay to handle the communication with the buyer because even though we had her information, there's nothing more sketchy than Internet Detective-ing someone's phone number and telling them they were scammed. Thankfully, either the Postal Cops or eBay put the kibosh on the returns and those have stopped. The Postal Cops never followed up, though.

My parents have both gotten mild to moderately screwed by identity theft and my mother keeps talking about joining LifeLock, but I've heard that even though it's better than it *was*, it's still just a tax on lazy old people who don't intarwebz well.

Which cops should be involved here? The local Fairfax County cops won't give a drat. They live in the DC area so they have the IRS building relatively close by along with tons of satellite offices.

BIG HEADLINE fucked around with this message at 22:32 on Feb 5, 2022

Motronic
Nov 6, 2009

In true modern fashion maybe you should try getting the attention of these tech companies by writing up a sanitized but rage-inducing version of this story and tweet it to them so other people can put them on blast for their lovely practices. This typically results in someone who is actually empowered to solve you issue reaching out, because first line support sure as hell can not.

H110Hawk
Dec 28, 2006

BIG HEADLINE posted:

The 1099-Ks have, thus far, only been sent out by eBay, PayPal, and in one instance, a scumbag collection agency in the employ of both of them. It hasn't progressed to the point where the IRS is telling him he's delinquent in paying taxes for the sales he never made with the account he doesn't own, since they've been zeroed out and my mother always insists that either company furnish her with a *corrected* 1099-K.

The only reason he *hasn't* set up an account is that one of the linchpins of their "defense" thus far has been being able to demonstrably prove he *doesn't* have an account, but maybe you're right. But eBay and PayPal are loving worthless in that you have to have an account to semi-easily communicate with a human being. I had to use *mine* and then spend the better part of half an hour trying to explain to the rep that this incident wasn't tied to *my* account, but rather a fraudulent one when it happened the first time.

It goes deeper, too - last year they started getting eBay *returns* mailed to their house. I intervened there as well and contacted the US Postal Investigation Service and the regional Postmaster General, as well as getting in touch with eBay because in that instance it compromised their *home* because when the returner didn't get their money back, I'm sure they would Google my father's name and quite easily find their landline number. I also wanted eBay to handle the communication with the buyer because even though we had her information, there's nothing more sketchy than Internet Detective-ing someone's phone number and telling them they were scammed. Thankfully, either the Postal Cops or eBay put the kibosh on the returns and those have stopped. The Postal Cops never followed up, though.

My parents have both gotten mild to moderately screwed by identity theft and my mother keeps talking about joining LifeLock, but I've heard that even though it's better than it *was*, it's still just a tax on lazy old people who don't intarwebz well.

Which cops should be involved here? The local Fairfax County cops won't give a drat. They live in the DC area so they have the IRS building relatively close by along with tons of satellite offices.

If you have a report number of USPIS then use that. Talk to a lawyer about how to tell them (Ebay, Paypal) to gently caress all the way off. The IRS isn't your enemy here, they're just taking paperwork from companies knowingly allowing criminals to use their network to conduct wire and mail fraud.

BIG HEADLINE
Jun 13, 2006

"Stand back, Ottawan ruffian, or face my lumens!"

H110Hawk posted:

If you have a report number of USPIS then use that. Talk to a lawyer about how to tell them (Ebay, Paypal) to gently caress all the way off. The IRS isn't your enemy here, they're just taking paperwork from companies knowingly allowing criminals to use their network to conduct wire and mail fraud.

Yeah, I/they still have access to the USPIS case number, and I've advised my mother to join Twitter (something I know I'm going to have to talk/handhold her through, since I refuse to be the go-between anymore) so she can ping @AskeBay. Getting her to consult a lawyer might be a harder sell because, well, she rarely leaves the house since she can't walk for poo poo anymore and hates people seeing her, which also probably precludes a video consultation. :sigh:

MadDogMike
Apr 9, 2008

Cute but fanged

Raere posted:

It looks like starting this year that system is only available for federal. My state (MA) has no information about that system this year, and other states straight up say they don't offer it this year. In addition, apparently there's some rule (not sure if it's state or federal) where you MUST e-file both federal and state together, you can't just do state. So I can't even find a low cost third party e-filer and file state for $10.

Rule is pretty much there because the states are much, much worse at catching fraud than the IRS's systems; a lot of fraudsters actually prefer just targeting state returns because those slip through easier. So a lot of software/organizations basically hold e-file on the state return until it passes to the IRS to help avoid that kind of fraud getting done with their stuff, and there aren't a lot of state only e-file options outside the state revenue department website on occasion.

H110Hawk posted:

If you have a report number of USPIS then use that. Talk to a lawyer about how to tell them (Ebay, Paypal) to gently caress all the way off. The IRS isn't your enemy here, they're just taking paperwork from companies knowingly allowing criminals to use their network to conduct wire and mail fraud.

Have you guys filed Form 14039 with the IRS yet? If they can get 1099-Ks in your name, doesn't that mean the frauds have their Social Security numbers? Might want to make sure they don't pull any tricks with the IRS directly. If nothing else I'd start double-checking their credit too.

sullat
Jan 9, 2012

MadDogMike posted:

Honestly I'm leery of expecting even the IRS to necessarily catch it on their own in time given how much trouble they've been having; if they send you a letter about it soon you're fine (they'll adjust the refund themselves), but if you get your refund without comment definitely file an amendment before April 15th and pay them rather than wait for it to pop up later.

Noticing a missing 1099 or w2 is a solved issue. He'll get a CP-2000 in about 15 months and if he ignores that, a deficiency notice a couple of months later, followed by bills. With interest and penalties. Best to correct it now, although the IRS can't process an amended return until the original one finishes.

BIG HEADLINE
Jun 13, 2006

"Stand back, Ottawan ruffian, or face my lumens!"

MadDogMike posted:

Have you guys filed Form 14039 with the IRS yet? If they can get 1099-Ks in your name, doesn't that mean the frauds have their Social Security numbers? Might want to make sure they don't pull any tricks with the IRS directly. If nothing else I'd start double-checking their credit too.

Nope, they haven't gotten the IRS involved at all because none of these 1099-Ks have made it to a point where the IRS is wondering where their money is.

Busy Bee
Jul 13, 2004
For someone who is over 72, has no annual income, and can start withdrawing from their IRA, do you recommend they do the standard 10% withholding when making the distribution from their account or just do it at 0% and report it during the tax season?

My understanding is that the 10% is just a standard guess and it could be lower or higher depending on the persons income, is that correct?

MadDogMike
Apr 9, 2008

Cute but fanged

sullat posted:

Noticing a missing 1099 or w2 is a solved issue. He'll get a CP-2000 in about 15 months and if he ignores that, a deficiency notice a couple of months later, followed by bills. With interest and penalties. Best to correct it now, although the IRS can't process an amended return until the original one finishes.

Again, issue is as far as I can tell efile for 1040X might not be available now, and paper file has the usual issues there, though worst case filing it that way with the payment and getting tracking on the thing should help at least.

BIG HEADLINE posted:

Nope, they haven't gotten the IRS involved at all because none of these 1099-Ks have made it to a point where the IRS is wondering where their money is.

You’re missing my point; to do a Form 1099-K you have to include the recipient’s SSN on it. If that’s not right that alone should get eBay/PayPal off their backs. But if the Social Security number IS right, then they could have other major issues like potential false tax returns in their names. Also the identity theft reporting helps cover your back if they do slip something through because it flags their ID as having theft issues.

Busy Bee posted:

For someone who is over 72, has no annual income, and can start withdrawing from their IRA, do you recommend they do the standard 10% withholding when making the distribution from their account or just do it at 0% and report it during the tax season?

My understanding is that the 10% is just a standard guess and it could be lower or higher depending on the persons income, is that correct?

Correct, it’s taxed like regular income so if it’s a big enough distribution you’ll be in a higher bracket than 10%. There’s a Form W-4P you can use to set the withholding rate.

The Slack Lagoon
Jun 17, 2008



My partner's organization wants to send my partner money for meals that individuals bought for a meeting, and then my partner sends those individuals their reimbursement amount through personal Venmo/PayPal transactions. I told my partner I wasn't comfortable with that since the business should send direct reimbursements to each individual and not have an entry level staff member take that work on. The reasoning for the company was that each person doesn't have a 'reimbursement account' set up and finance wants to do what's easy for them. Are there any tax or other financial implications of this setup? Seems sus as hell to me and I don't really want money run through our private accounts.

H110Hawk
Dec 28, 2006

The Slack Lagoon posted:

My partner's organization wants to send my partner money for meals that individuals bought for a meeting, and then my partner sends those individuals their reimbursement amount through personal Venmo/PayPal transactions. I told my partner I wasn't comfortable with that since the business should send direct reimbursements to each individual and not have an entry level staff member take that work on. The reasoning for the company was that each person doesn't have a 'reimbursement account' set up and finance wants to do what's easy for them. Are there any tax or other financial implications of this setup? Seems sus as hell to me and I don't really want money run through our private accounts.

If your partner totals their receipts, submits them, and is reimbursed for that amount, then sends it along it's probably fine. The "right" way to do this is to have your partner pay and submit.

Petty cash is a normal thing though. Make sure that you don't lose the receipts. (start a Google drive folder) Make sure they aren't charging her income tax.

BIG HEADLINE
Jun 13, 2006

"Stand back, Ottawan ruffian, or face my lumens!"

MadDogMike posted:

You’re missing my point; to do a Form 1099-K you have to include the recipient’s SSN on it. If that’s not right that alone should get eBay/PayPal off their backs. But if the Social Security number IS right, then they could have other major issues like potential false tax returns in their names. Also the identity theft reporting helps cover your back if they do slip something through because it flags their ID as having theft issues.

Linked them to it.

They evidently just got a new 1099-K from eBay Financial - this time for $27,200 and change. The largest single amount yet since this ordeal started. I set my mother up on Twitter so she can contact eBay through their @askeBay account. Thanks for the advice - I'm trying to do my best to be a "good son" (an appellation I loving hate since it's routinely used against me), but I'm also trying to keep myself at an arm's length so I don't get drafted into "dealing with this for them." :rolleyes:

Seriously, if I do too much it turns into "well, you seem to understand it more, so..." :colbert:

MadDogMike
Apr 9, 2008

Cute but fanged

BIG HEADLINE posted:

Seriously, if I do too much it turns into "well, you seem to understand it more, so..." :colbert:

Ah, say no more then ;). If they do bug you to talk to the IRS for them, you can in good conscience point out the IRS will NOT speak to you about their business by law anyway because they don’t know you aren’t fraudulent yourself (it’s hard enough getting permission to talk to them about someone else as a preparer as is!).

BIG HEADLINE
Jun 13, 2006

"Stand back, Ottawan ruffian, or face my lumens!"

MadDogMike posted:

Ah, say no more then ;). If they do bug you to talk to the IRS for them, you can in good conscience point out the IRS will NOT speak to you about their business by law anyway because they don’t know you aren’t fraudulent yourself (it’s hard enough getting permission to talk to them about someone else as a preparer as is!).

I did have to get involved in a minor fashion because the @AskeBay crew finally gave them a link to "have us call you" only for the link to require a sign-in with an active eBay account with a verified phone number connected to it. What a clusterfuck of a system. NOT how I wanted to spend a good 45 minutes of my day, having to stop by their house (I'm in the special hell of living no more than 20 minutes away from them) on my way home to finally speak with a human with a pulse.

I asked them if there was a way to create a flag in their system that if *anyone* in the future tried to register an account in my father's name using his SSN and his address, if it could blacklist and flag the account. Because one of the accounts has been suspended, and the other is inactive.

And yeah, I'm NOT being their go-between with the loving IRS. I have my poo poo *handled*. :colbert:

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Skinnymansbeerbelly
Apr 1, 2010

Skinnymansbeerbelly posted:

Is the California Golden State Stimulus II (AKA GavBux) considered taxable income for my federal tax return? It's the last stub in my envelope that doesn't have a 1099.

Rehashing because I cannot find an authoritative source on this.

The Franchise Tax Board very specifically does not address whether it is federally taxable, only that it is not taxable for California state income tax purposes. A quick search of the instructions for the Schedule CA (California income adjustments) does not include instructions for subtracting it out, which suggests to me that the state does not expect it to be included on the 1040. But the FTB isn't the authority for federal taxes.

Some rando forum posts suggest that it might be excluded under something called the General Welfare doctrine, but all the references I can find to that are about payments from Indian & Tribal governments, not States.

I am flummoxed.

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