US Income Tax Thread: Bank error in your favor! GO DIRECTLY TO JAIL.

The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > US Income Tax Thread: Bank error in your favor! GO DIRECTLY TO JAIL.

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Peyote Panda: Mar 10, 2019

tangy yet delightful posted:

Any advice about people who paid taxes for 2018 filing year so did not get a refund but yet the IRS has their bank account info and could DD the stimulus into it? (and by people I mean myself and my wife)

The IRS won't have the necessary bank information for a DD if you've only made electronic payments and haven't gotten a refund DDed in the last two years.

Get My Payment Frequently Asked Questions posted:

The account information used to make an electronic payment to the IRS cannot be used as the account information for the direct deposit of your payment. If we do not have bank account information for you and your payment has not been processed yet, Get My Payment will allow you to submit your bank account information once you have properly verified your identity so that you can get your EIP via direct deposit. Otherwise, we will mail your payment to address we have on file for you.

# ¿ Apr 17, 2020 23:54

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# ¿ Apr 28, 2024 13:21

Peyote Panda: Mar 10, 2019

BonerGhost posted:

A lot of people don't know you can update your address with IRS whenever you move without waiting for filing day (I sure as hell didn't before I did taxes last year) https://www.irs.gov/faqs/irs-procedures/address-changes/address-changes

Also, if you haven't already done so file a change of address with the post office. If there's a CoA on file they will usually forward refund checks to the new address. That can vary by location, so I'd suggest checking with your local PO branch if possible to see what their specific procedures are in those cases and continuing to try other options to update your address directly with the IRS if you can.

(This is suggested on the linked page above, but since it's buried in the fine print I wanted to point it out specifically).

# ¿ Apr 21, 2020 21:43

Peyote Panda: Mar 10, 2019

Mr.Radar posted:

I mailed in my tax forms at the beginning of March (to the California processing center) and the IRS still hasn't processed them (I haven't received my refund and the site to check my return status says they haven't received anything from me yet). Is their mail-in processing that backed up? Or should I assume my tax forms get lost in the mail somewhere and I need to send them in again? Should I request an extension?

I'm one of the lucky schmucks that answers phones at the IRS and yeah, it's that backed up. The processing centers shut down in mid-March and they're still not fully reopened. Our current guidance is that generally speaking you're looking at normal processing timeframes restarting on August 1st. For example if you mailed in a return it's normally a 6-week processing timeframe so you're looking at it finishing processing around mid September (6 weeks from 8/1/2020) assuming no other issues arise. Hopefully you'll see it update on Where's My Refund to at least show it's in processing sooner than that.

We're also generally advising people not submit a second copy since that can lead to further delays as the processing center stops everything to get it sorted out and and sometimes sends you a letter asking for an explanation before they move forward.

# ¿ Jul 16, 2020 03:15

Peyote Panda: Mar 10, 2019

Small White Dragon posted:

Does that timeline apply to e-returns as well? A lot of folks close to me who've e-filed in the past few months got their state returns promptly but the IRS website just says "We've received your return and are processing it."

E-filed returns should be processing normally for the most part (3-week timeframe) unless they hit a snag that requires manual intervention such as a missing or incomplete form or the return getting selected for income verification (which happens a lot if an employer filed an incorrect W2 or didn't get one filed at all - the system can't match up what we have on file with what was submitted on the return) so a live person has to look into it. Then the timeline becomes longer and more uncertain.

For example, the latest guidance we've gotten regarding ERS (the system that usually handles the incomplete/missing forms/information issues) is that it'll probably be end of September/mid-October before they're even caught up with the back log. I feel bad for the callers because in a fair number of those cases it's either not clear what's missing at this stage from the limited information the phone customer service reps can see so I can't even say "Fill this in and send it to us so we can put it in the queue." In other cases, the letter detailing the needed forms went out before the shutdown and they've sent in the requested information but there's no way to verify at this time if we got it and it's sitting in a pile somewhere or if we never received it. And they've been holding on the line for an hour or two at that point to get the equivalent of :shrug:

And God help anyone whose return had to go to Exam. We haven't heard when that department will be open again much less moving forward with case processing.

I also have a sinking feeling - hopefully misplaced - that even the extended timeframes we've currently been given are going to turn out to be overly optimistic given that major processing centers like Fresno and Austin are in current COVID hotspots. I've already heard of at least one incident of a building at one of the processing campuses being opened only to have to be closed for a deep cleaning after workers there came down with the roni and this was over a month ago when we weren't going into Wave 2: Electric Boogaloo.

# ¿ Jul 16, 2020 06:14

Peyote Panda: Mar 10, 2019

sullat posted:

Pressing F to pay respects to a call center goon. Hang in there! You working from home or are they making you go back to the office?

Most of the call center people are teleworking now. The IRS was slow-rolling that out back when it was just a convenience for the employees but once it became essential to us getting any work done it got cranked out in a hurry (relatively speaking, I still got to chill for two months of fully-paid safety leave before they got around to giving us the necessary equipment to work from home).

The few call site reps who don't have the capacity for telework are being called in to the office but the numbers of people on site will hopefully be low enough to maintain easy social distancing. And with the telework stuff rolled out the phones should still remain operational now even if the processing centers fall back into hellworld.

# ¿ Jul 16, 2020 16:35

Peyote Panda: Mar 10, 2019

Badger of Basra posted:

I�m one of those people who got a coronabux payment for a dead relative, so I followed the instructions on the IRS website and sent them a check for the same amount to return it.

That was 2+ months ago and the money still has not been withdrawn from my account. Should I assume they never got it, or that they still have it but because of everything else going on just haven�t deposited it? I�m afraid to cancel a check on the IRS.

It's entirely possible that they got it but haven't processed it yet. There are some offices that won't even start looking at their mail backlog until August 3rd. I'd suggest waiting until the end of August and if the payment hasn't come out by then, then give the IRS a call.

If you do need to call then you'll need someone who is either a court-certified representative of the estate or a power of attorney assigned after death by said rep to get account information (such as looking into the account for potential payment info). If you have someone in either of those categories but they haven't filed the necessary forms with the IRS (such as a form 56 for the estate representative/administrator), they'll want to call while they're at a fax machine so they can fax the over the necessary forms to whomever is assisting them on the phone to verify their legal authorization for account information. Unfortunately, we don't take emailed documents though you can eefax if that's an option for you. Check out form 56 and publication 559 on irs.gov if you need more info about this.

If you ultimately end up needing to cancel the original check and send in a new one later, don't worry about the IRS. A voided check (or electronic payment that is cancelled or had a stop payment placed on it, for that matter) usually doesn't cause any penalties, you only get charged with a Bad Check Penalty if a payment doesn't go through due to insufficient funds. Kind of like the old ISF joke goes, we only charge you a fee when we know you don't have the money.

# ¿ Jul 25, 2020 19:50

Peyote Panda: Mar 10, 2019

Meaty Ore posted:

I just got my refund in the mail today as well.

One small thing has me a bit confused, however. The refund check is for a small amount more (a little over ) than I should have gotten back, according to the return I filed. I double checked my math, and can't find anything wrong (I did this before I filed, as well, of course). How do I proceed from here? I'd kind of like to know why the difference is there, small as it is. The IRS hasn't contacted me either way regarding my return, and this is the first time anything like this has happened to me.

If the delay between the receipt of the return and the release of the refund is long enough, you may have gotten some credit interest on the refund. If there had been a change of the base refund amount due to an adjustment of the return in processing, you would have gotten a CP notice of some kind, though it is possible that one was sent and got lost in the mail.

The easiest way to check would be to get an account transcript for the tax year in question. You can call the IRS as well but the phone lines are pretty busy whereas if you're able to use the online transcript tool at IRS.gov under "Get my tax record" you can get that transcript immediately once you set up an account.

Assuming it is credit interest, you'll get a 1099-G from the IRS next year for the additional amount and will have to report it as taxable income.

# ¿ Aug 14, 2020 23:23

Peyote Panda: Mar 10, 2019

Ur Getting Fatter posted:

I mailed in a couple of amendments around a month ago.

Checking the status of my amendment gives me an error when I put in my details (SSN, DOB, ZIP) saying the information doesn't match the IRS' records even though everything matches what I put in my last return.

Out of curiosity I tried to log in to my IRS account and it asked me to revalidate my info, and when it asked for my mailing address it again claimed the information wasn't a match.

I'm not very concerned but this is a pain in the rear end. Am I stuck having to call the IRS and trying to get this sorted out?

Generally if the amended return system is not returning any information it probably means the amended returns haven't started processing yet. Unfortunately that's not unusual right now as the processing centers are still catching up with the backlog from the shutdown and even under the best of circumstances it's at least 3 weeks from the date you sent it in for it to even show up as being received.

As far as the account issue, the system usually looks at the address exactly as it was on the last processed tax return so if there were any changes, even minor ones such as changing the abbreviation of street from st to str that could throw things off. And every once in a while I've seen cases where I verified the taxpayer was inputting the exact correct information which had working previously and the system still wouldn't accept it now for reasons unknown to God or man. So in that case I'd suggest double-checking your most recent return first.

You can call the IRS if that doesn't get you anywhere. The standard 1-800-829-1040 line is open M-F 7AM-7PM, and usually calling early morning or late evening is the best way to get through. It normally takes up to 16 weeks to process an amended return so I'd suggest allowing that timeframe before calling - most live assistors won't even go into the account until the normal processing timeframe has passed, thought they might help you with the account access issue at least as far as possibly seeing what account info you're putting in that is not matching on our side.

# ¿ Sep 21, 2020 19:44

Peyote Panda: Mar 10, 2019

MadDogMike posted:

These days I'm pretty sure if you have the court certificate you can skip the 1310 altogether and just mail the certificate attached to the return, the 1310 is just there if you aren't named officially and is basically you swearing the refund will be handled according to local inheritance law. I think you can file with questions 1 and 2a/b marked No and 3 marked as yes in this scenario.

I'd include the 1310 just to be safe. I've seen the processing centers hold a refund until they get the 1310 even if the court-certified representative is listed on the taxpayer's file as an authorized representative of the taxpayer and is the one requesting the refund.

I would also suggest filing a Form 56 with the supporting paperwork to get yourself on file as said decedent's authorized representative. Otherwise, if you need to call up to follow up on the return or the refund (and unfortunately with decedent refunds you'll almost certainly have to do follow up) you'll have to fax in your court-certified documents to the assistor you're speaking to while you're on the call so they can verify your legal authority before they can even speak to you regarding the account.

Also, normally print returns are processed within 6 weeks but it'll probably take a lot longer due to the fact that the processing centers are still catching up with the backlog from the COVID shutdown earlier this year. I'm not sure exactly how far the backlog is and it probably depends on the processing center but from what I've heard as of a month or two ago there were literally millions of items of mailed correspondence nationwide that haven't been opened yet and I've had taxpayers calling to check the status of returns that were mailed in May or June and those haven't even begun processing yet.

# ¿ Nov 21, 2020 19:55

Peyote Panda: Mar 10, 2019

Senor P. posted:

I took a new job earlier in the year and I am also working more overtime than I expected.

I may be above the limits for normally making Roth IRA contributions.
I alreayd made my 2020 contribution back in January.

After I get my W2 and my MAGI calculated, (which is really the determining factor), do I need to pull the money back out of my Roth?

Or do I need to do that before the end of the year?

You can get more information here but usually you have until the due date of your individual income tax return (including extensions) to withdraw the extra contribution as well as any interest or other income earned on it to avoid the excess tax.

# ¿ Dec 25, 2020 22:58

Peyote Panda: Mar 10, 2019

human garbage bag posted:

So if I had no income last year I don't have to pay estimated tax this year?

And just to clarify, the safe harbor mentioned above isn't what determines whether you need to pay estimated taxes at all, but rather how much you need to pay during the year to avoid an additional penalty for underpayment when filing your taxes. You can find more info on the IRS's Estimated Taxes page but if this is all new to you and you're going to be getting a significant amount of income this way I'd second Motronic's suggestion to get an accountant for at least the first year. Even more so if you're going to have state tax issues to contend with.

# ¿ Jan 2, 2021 04:54

Peyote Panda: Mar 10, 2019

Epi Lepi posted:

I have a poo poo memory and I take this poo poo for granted, is there any chance the IRS will allow e-filing of 18 an 19 returns before 2/12 when 20 is supposed to be open? Because I am getting pissed off that I have some outstanding returns done but not able to be filed and even with a delay to 2/12 it seems pointless to mail them. I can't remember from previous tax years if all individual returns opened back up at once or not.

I don't think so. From what I've heard prior year return e-filing won't be available until 2/12. You can submit 2020 e-file returns now but they're still not going to start processing until 2/12 (except for some randomly selected test cases). And yeah, do NOT mail in returns unless absolutely necessary. There's returns mailed in last year during that filing season that are still in processing and literally millions of mailed returns from last year that haven't even been opened yet at the service centers according to the most recent info.

# ¿ Jan 27, 2021 18:18

Peyote Panda: Mar 10, 2019

sullat posted:

The IRS can absolutely distinguish between different parts of the refund. I don't know if this is how it's going to be done, but I imagine that the Recovery Rebate Credit will be flagged to ignore offsets. But don't quote me on that.

I thought that was going to be the case as well but the Internal Revenue Manual got updated today with Recovery Rebate Credit info and it will be subject to normal offset procedures. Why? Because gently caress you, America, that's why.

# ¿ Feb 5, 2021 23:06

Peyote Panda: Mar 10, 2019

MadDogMike posted:

Actually, I wonder if the CARES act specifically has any language regarding this kind of thing because I swear from my (admittedly crappy) understanding they weren't supposed to use offset for the original stimulus payments, and I'd think you'd have legal issues suddenly doing that because of a screw up on your end forcing it to go on the return.

The original stimulus payments only offset toward child support debts and the second payment didn't offset at all. In my naivete I'd thought one or the other would carry over to the Recovery Rebate Credit, but that's not the case.

And yeah, from my experience talking to taxpayers the ones getting stuck doing the Recovery Rebate Credit to claim their stimulus are often the ones who had issues providing the necessary info to the IRS because they don't normally file, had issues in processing due to things like their employers loving up their W2 filings so their return info didn't match our income records, etc. Basically, people who are already in desperate circumstances and got screwed for systemic reasons beyond their control. You know, the kind of people that need the money the most. And now if they have a debt with the IRS or any other government agency that's laid a claim on their refunds it's also gently caress your stimulus.

Hopefully people scream to their congresspeople and it gets addressed. I'm planning on sending a message to my reps because this is some stupid bullshit.

E: Of course, I'm sure that'll go about as well as everyone else screaming about the stimulus payments right now.

Peyote Panda fucked around with this message at 15:32 on Feb 6, 2021

# ¿ Feb 6, 2021 07:42

Peyote Panda: Mar 10, 2019

gamer roomie is 41 posted:

A couple months ago my gf got a letter from the IRS (CP80) for tax year 2017 saying that she needs to file and there's a $1321 credit on her account. She was in school that year but made some w-2 income (under the minimum amount required to file). When I use this little survey it says she wouldn't have need to file based on the w2 amount, but when I say someone claimed her as a dependent it changes and says she DOES need to file. So I'm assuming her parents claimed her that year? However, she would have been 26 on the last day of 2017, and I just read students can be dependents until they're 24 only? I'm going to text her dad later but I'm not sure if he'd even remember or have records. We moved in together that summer so there may have been some confusion about who would claim her, but I'm 99% sure I didn't.

Anyway backstory aside, is there anywhere I should indicate the $1321 on the 2017 tax return? Is that amount what they expect her return *should be* from computing the w2 info they have on file? Or is that a separate thing? Or a standard credit for anyone that meets basic parameters x, y, and z? My taxes have always been pretty straightforward with a small amount owed or credited each year, I've never heard of this and have no idea what to do.

I assume it's going to take 1,000 years for them to get around to processing it but it would be nice to have it out of my hands and get a surprise check on some distant day.

Usually with the CP80 if there's a credit listed it's usually an amount that was paid toward the return, such as an estimated tax payment or a payment submitted with an extension to file, that's now sitting under that year as a credit because no return was processed for that year yet. The CP80s are automatically issued since you have to file a return within 3 years of the original due date or Uncle Sam will just take the money for himself.

The easiest way to find out would be for her to go to IRS.GOV, go to Get My Tax Record, and once she has an account set up there order an Account Transcript, which will show what the payment was for. Assuming it's one of the aforementioned options, it would be reported as part of the Estimate Payments line on the return. If she doesn't have her income records for that year, ordering a Wage and Income transcript will also provide those for filing a return. If she's not able to set up an account on IRS.GOV to order the transcripts she can call the number on the notice for more info, but be warned the hold times can be rough (she'll probably be on hold for a couple of hours, assuming the system doesn't get overloaded and boot the call entirely).

She can file a return even if there's no requirement if it would generate a benefit such as a refund, which the credit may well end up being if she doesn't owe any taxes on that year. Depending on the circumstance, she generally might even be able to efile (you can usually do that going back up to three prior years, and we're in the 2020 filing season now so she'd still be within the timeframe for a 2017 return) though not all efile vendors offer the prior year option.

# ¿ Feb 6, 2021 16:36

Peyote Panda: Mar 10, 2019

Epi Lepi posted:

Your math is off with whether she can e-file. Right now only 18, 19 and 20 are able to be e-filed.

Thanks for catching that. Also I double-checked and only professional preparers can efile prior years. If you're not using a professional preparer, you can use tax prep software to prep returns up to three years prior but you'll have to print the forms once they're done and mail them in (and it's a good idea to print copies for your records anyway so if an issue comes up you'll have the return for reference).

# ¿ Feb 7, 2021 00:42

Peyote Panda: Mar 10, 2019

BonerGhost posted:

I did military VITA for one year before going back to school and our site leader could and did efile prior years.

So if someone qualifies for vita their site might be doing it. Pretty unlikely, I'd imagine.

I know in previous years VITA practitioners were able to efile the three prior years in addition to the current filing year (and this was explicitly stated on the 3673-B publication outlining their services), but I'm not able to find any verification of exactly what they can do now (the current version of the publication just says "Prior Year and Amended Returns limited).

BonerGhost posted:

I love VITA, it's a great program that not enough people know about.

Agreed. I really wish the IRS.GOV showed it more prominently. If you know the program exists you can just search for VITA on the website search box, but there's no links or even a mention of it at all on the filing pages.

# ¿ Feb 7, 2021 05:54

Peyote Panda: Mar 10, 2019

Unsinkabear posted:

I'm so glad OP brought this up, because I came to ask a related question and wasn't sure how to explain it:

I had to pull my 2019 transcript from that website over the weekend, and it says my ex-wife and I had a final balance of -460.26 dollars due to a refund that was apparently returned to the IRS as undeliverable towards the end of 2020. Now that we're divorced and filing as single, how do we claim this? I will be filing today if possible, and will just split the refund with her if I'm able to grab it on this year's taxes. I was planning to file with FreeTaxUSA, but I haven't seen any options for this in the guided filing walkthrough so far. Is this something they can handle?

For a prior year refund that was undeliverable, you'll have to call in (1-800-829-1040). Most likely for what you want they could do one of two things.

The first is remail the check after verifying your address, which you'd get in about 4-6 weeks, and then you could just give your ex-wife half the funds.

You could also have it moved forward to this year and split up half under your social security number and half under hers and then each of you could claim it as part of the estimated tax and other payments line on your respective returns, just like you would with a credit elect. But you would still have to call to get that credit transferred manually first, which takes about 2-3 weeks to process.

Either way, the credit will most likely just sit there until you contact the IRS. Sometime the check get reissued if there's an address update, but otherwise you'd end up getting a notice eventually that the IRS still has your refund and asking you to call to have it resent.

# ¿ Feb 8, 2021 17:18

Peyote Panda: Mar 10, 2019

Unsinkabear posted:

Thanks! I got the "Status Not Available" glitch on the last round of stimulus payments (I assume due to my status, address, and bank account changing), so I'd like to file ASAP and get my current info on file w/ the IRS updated before the next one goes out. If I'm understanding you correctly, it sounds like I can just file for this year normally, and then call and ask for that refund from last year to be re-mailed separately?

Yes. They're handled separately so you don't need to sort out the 2019 refund re-issue before filing for 2020.

# ¿ Feb 8, 2021 17:53

Peyote Panda: Mar 10, 2019

UnfurledSails posted:

I'm an H1B holder. Last September I got a letter from the IRS saying that there was an error in my 2018 filing and I owed them about 2.5k. I will be quitting my job and leaving the US by the end of this year. If there is a similar error in my 2019/2020/2021 filing how is IRS going to let me know? I did not get any emails just a physical letter...

The IRS only communicates these issues by physical mail for security purposes, so you wouldn't be getting any emails. Was this a CP2000 notice or something else?

# ¿ Feb 11, 2021 02:26

Peyote Panda: Mar 10, 2019

UnfurledSails posted:

It was a CP2000.

I just wish there was any other way I could have found out, like checking a website or something. It would be more secure to get emails since I'm pretty much constantly on the move now, and probably for the next few years. I switched everything I can think of to paperless systems so I was hoping I can do the same with IRS, especially since I will keep my US bank and brokerage accounts and keep paying capital gains taxes even after I leave.

So CP2000s are generally triggered by some discrepancy in the income documentation filed by the generating organizations (your employers, financial institutions where you had interest income, your state if you received unemployment, etc.) and what was reported your return. Unfortunately, since some of those forms aren't required to be reported for up to 13 months after the end of the year they apply to, the IRS doesn't have all of the info until then and thus you end up getting things like this where you're just now receiving notice about an issue with your 2018 return.

So if you're concerned that the same issue with your 2018 return might come up in future years, the first step would be to see what documentation caused the issues on the 2018 return and get your 2019 return forms as well as getting a 2019 Wage & Income transcript from the IRS. The latter should now show all of the income documents that would have been reported under your social security number, so you can compare everything to see if a similar issue could arise and file an amended 2019 return if needed. If you're able to set up an account on IRS.GOV under the "Get Your Tax Record" option, a W&I transcript should be one of the ones available.

As far as the address issue goes, there really isn't a paperless option for the IRS. They are working on making more of the notices they send out available through the transcript system, but you'd still have to check it manually. There are two options you can do if you're expecting to move a lot.

First is filing regular change-of-addresses with the USPS and form 8822 with the IRS; IRS mail usually gets forwarded if there's a mail-forwarding set up with USPS and sometimes that system will even update your address with the IRS, though the communication is inconsistent on that, while the 8822 form (which can be downloaded at IRS.GOV as well) can be mailed in to directly update your address with the IRS. You can call in to do it as well but expect long hold times.

Second is to change the mailing address to something consistent such as a family member's home or something else where the address stays the same and you can trust the people there to let you know if something comes in. The IRS doesn't particularly care if it's your actual current residence or anything for address of record purposes, they just want an address where you can reliably receive any letters or notices.

# ¿ Feb 11, 2021 03:13

Peyote Panda: Mar 10, 2019

MrMidnight posted:

Filed for my 2020 taxes a couple of weeks ago and decided to check my transcripts. Noticed I had two code 290 "Additional tax assessed" but with $0.00 for the amount. Different dates on each.

Any idea what this could mean?

Were there amounts listed for your EIP (stimulus) payments and no TC 150? If so, the two 290s for .00 were the transaction codes input to release your stimulus payments.

(The code 150 would be your tax balance on your tax return. It's probably not there yet since the IRS doesn't even begin processing filed returns until tomorrow except for a few random test cases, and the 290 would normally reflect a subsequent adjustment, but in the specific case described above it would be those stimulus refund releases. We just put them on the 2020 tax year because they were effectively advances on the Recovery Rebate Credit.)

# ¿ Feb 12, 2021 03:22

Peyote Panda: Mar 10, 2019

MrMidnight posted:

I don't have anything else like what you're describing. Just the two 290 codes with zeros for amount.

Just as a final verification, is one of the dates back around April or May of 2020 and the second date around December 2020 or January 2021 (or otherwise around the dates you received your stimulus payments)? That would also be consistent with the stimulus payments.

# ¿ Feb 12, 2021 16:25

Peyote Panda: Mar 10, 2019

MadDogMike posted:

Also on a related note, is it just me or does the IRS completely ignore Form 8821 if you filed one for a client? Never seem to get an answer to even the most basic �how much do they show as owing?� question, need a 2848 POA or nothing.

In theory the 8821 should be sufficient for account questions like that and you'd only need the full 2848 POA for taking account actions like changing the mailing address or setting up an Installment Agreement.

In practice I've heard that ACS (Collections) doesn't give practitioners the time of day unless they have a POA on file, the POA because representatives under an 8821 can't set up a payment plan (which again, shouldn't matter if they're just trying to get balance <i>information</>) and on file because ACS reps apparently don't all have EEFAX to receive forms during calls. I don't work that department myself so I don't know if that's official policy or not, that's just the feedback I've gotten from practitioners that have called ACS. There's certainly shouldn't be any issues with giving balances due and such on the Priority Practitioner line (one of the ones I work), I do it all the time albeit with the proviso that if the balance is being handled directly by Collections they would be the only ones that can provide an official payoff amount.

quote:

Not that they seem to keep those around, considering I wind up having to re-fax the drat POA form every single time I call. Starting to wonder if they lost my CAF number/file.

I don't know what's going on at the CAF unit, but the guidelines they're giving us on the phone over the last few months have gone from the normal 5 business day processing timeframe to 10 to 25 days and this week they just said gently caress it, no timeframes for when 2848/8821s will be processed, don't bother sending it in again if it's already been submitted.

black.lion posted:

Yes you'll want to report it as the IRS has a copy too of that form too and if you don't they're going to make 6 or 7 wild rear end assumptions about it that somehow results in them thinking that you owe a bunch of money you don't actually owe, and they won't tell you abt it for three years and then when they do it'll be nigh impossible to even get them on the phone to get it sorted out

I am maybe extremely cranky rn from dealing with a similar situation

Make sure you put zero in the taxable amount box ofc

Seconding this, otherwise the Automated Under Reporter Department will send you a CP2000 a couple of years after you file causing the exact situation black.lion described.

# ¿ Mar 3, 2021 02:58

Peyote Panda: Mar 10, 2019

saltylopez posted:

Who here is ready to amend every return you've done over the past month with unemployment income?

https://twitter.com/ddayen/status/1367860251744116737?s=19

Good policy but still

FUUUUUCCCCKKK. Not to the policy itself, it's the least the government could do under the circumstances, but Jesus what lovely timing. I hope to Christ the IRS can figure out some sort of systematic adjustment to already filed returns because the amount of amended returns otherwise would be ridiculous. Between the record number of unemployment claims and the likelihood that the people with unemployment income were in a rush to file to get whatever refund they could/get their info in the system for a possible third stimulus I'm sure a shitload of the potentially affected taxpayers have already filed.

And they still manage to insert some means-testing bullshit with it only being the first $10,200 of UI. This is almost a rhetorical question at this point, but why not just declare all the unemployment income non-taxable just for the sake of simplicity? I'm sure there'll be will be more detailed info on how some lanyard-dicked assholes arrived at that number as the perfect compromise between making sure the resolution is sufficiently overcomplicated while not quite giving people enough assistance to make a real difference. :bang:

# ¿ Mar 6, 2021 04:55

Peyote Panda: Mar 10, 2019

KillHour posted:

Ughhh, she hasn't filed yet but my GF was on furlough and I just KNOW this is going to be a huge pain the rear end that isn't going to be handled OOTB by tax software because of the timing.

Maybe they'll get it updated before the end of filing season. I mean, we had special retirement distribution rules with the CARES Act which was signed into law in March of last year and the IRS was able to rush finalizing the 8915-E form for reporting those distributions on 2020 returns so they finally started becoming available for efiling 2-3 weeks ago. :cripes:

Hopefully we'll get it done a skosh sooner this time around.

# ¿ Mar 6, 2021 06:04

Peyote Panda: Mar 10, 2019

MadDogMike posted:

Guess that answers my question about whether Congress could stop doing tax law changes after the fact and get it right the first time .

To be fair, this was a vital bit of horse-tradin' to make sure instead of straight-up giving currently unemployed people more extensive additional benefits that we instead create a possible tax benefit that creates additional tax reporting issues for them if they want to claim it. :rolleyes:

I'm really hoping that if the IRS is able to do something systemically for the already-filed returns but that's unlikely just because a change in total taxable income can have so many additional effects that a full amended return would probably necessary in a lot of cases to capture all of the adjustments. Especially if you start getting into determining MAGI for items like the 8962 which still capture certain types of nontaxable income like nontaxable Social Security Benefits.

Peyote Panda fucked around with this message at 17:37 on Mar 7, 2021

# ¿ Mar 7, 2021 03:25

Peyote Panda: Mar 10, 2019

GoreJess posted:

Well I came here to ask if I was going to have to amend our return to get my paid unemployment taxes back. This is likely to be a huge pain in the rear end right?

They withheld almost a $1000 for the months I was furloughed, I definitely want that back.

There aren't any details yet, but most likely you may have to amend your return. How much of a pain that is will depend on how you filed your return. If you filed electronically you may be able to amend the return the same way now (the IRS introduced the option to file amended return electronically if you filed the original electronically last year) but I don't now how well the tax prep software walks you through that process.

The biggest drag may just be the waiting time. An amended return can take up to 16 weeks to process under ideal circumstances. If you have to mail in a print copy, well.. the submission centers haven't caught up with processing last year's returns yet (IIRC, due to the retooling for COVID social distancing and other safety measures they're still only operating at 25% capacity or something like that) so it might be considerably longer than that.

# ¿ Mar 7, 2021 17:54

Peyote Panda: Mar 10, 2019

Residency Evil posted:

Question: my parents did not get a stimulus check in 2020. I was under the impression that they'd be eligible to get an extra refund back on their taxes. My dad is saying that's true, however their income was significantly higher in 2020 versus 2019, right around the phaseout. Apparently rather than the extra stimulus refund being based on 2019 taxes, it's being based on his 2020 AGI, which results in a significantly lower amount. Is that the case?

Yes. Even though the stimulus payments would have been based on prior year info, the Recovery Rebate Credit is calculated using the 2020 information so in this case your parents may get less of an RRC that the stimulus payments would have been.

# ¿ Mar 10, 2021 01:36

Peyote Panda: Mar 10, 2019

Residency Evil posted:

Thanks. Presumably there's no way for them to get the check they should have gotten in 2020?

Unfortunately no. The IRS isn't reissuing stimulus payments at this point, just advising anyone who didn't receive one to reconcile it with the Recovery Rebate Credit on the 2020 return.

# ¿ Mar 10, 2021 02:04

Peyote Panda: Mar 10, 2019

PageMaster posted:

So by what date do we have to get our 2020 tax returns filed for the stimulus consideration? In 2019 I made too much, but then lost my job for 2020 and would qualify; as I understand it if my return isn't filed in time I'm SOL and there's no way to fix it after the fact?

Just to make sure I'm following your question correctly, you didn't get either stimulus payment so you want to file your 2020 return to get the credit, right? No problem, just file the 2020 return (you can still file even if you don't have a filing requirement) and claim the Recovery Rebate Credit to get the payments. If you're expecting a refund your only real restriction is that you want to file within 3 years of the due date to get the credit.

You might be conflating that with the fact that you can't file an original or amended 2019 return to get the stimulus payments, but that's just because the IRS is no longer issuing those first payments as stimulus checks any longer, they're now being handled as part of the Recovery Rebate Credit on the 2020 return instead. And those credit calculations will use your 2020 income so as you described it you're more likely to be eligible than you were previously when it was using the earlier year info.

Does that make sense?

# ¿ Mar 11, 2021 00:12

Peyote Panda: Mar 10, 2019

PageMaster posted:

I I am taking about the new 1400 dollar stimulus (and increased child tax credit) just passed today(?). I did not qualify under my 2019 AGI when I still had a job, but I would under my 2020 AGI when I did not have a job. Unfortunately, my returns are being done by a CPA firm because of some complexities to them, but they are taking way too long and I'm worried they won't have them done in time for this round of stimulus checks.

Gotcha. Since the legislation just passed there's not any guidance on how the IRS is handling that yet or if there will be opportunities for revisions for people who don't have processed 2020 returns on file when the next stimulus is issued. There should be more details on IRS.GOV once it's gotten sorted.

# ¿ Mar 11, 2021 01:38

Peyote Panda: Mar 10, 2019

stellers bae posted:

So with that whole unemployment tax thing that just passed...

My wife was on UI last year because she had the audacity to be in a real job that actually does meaningful work instead of slapping keyboards at home like me. When the exemption is granted, does that income get sliced off the top at our combined, higher marginal rate? I pray so because I owe like $5k due to not understanding how withholding works anymore.

It should reduce the total income so I think that would be the case. The instructions for how to calculate this on the return have been posted by the IRS here:
https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemployment-compensation

Run through those steps and it should give you a better idea where things are at.

On a related note, the IRS is also asking people not to file an amended return for this subject at this time, so hopefully there will be a systemic fix for the already filed returns with unemployment income.

# ¿ Mar 16, 2021 20:45

Peyote Panda: Mar 10, 2019

Tax Day for individuals extended to May 17: Treasury, IRS extend filing and payment deadline

# ¿ Mar 18, 2021 01:12

Peyote Panda: Mar 10, 2019

Epi Lepi posted:

Having said that, I have clients who were not patient at all and said they were willing to take the risk of complicating things by submitting an e-filed return instead of waiting for their first mailed in return to be processed. I fully expect IRS correspondence later but how could it delay the processing further? It seems more likely that the IRS will process their e-filed return and issue their refund before the paper return even gets touched at this rate.

As long as the efiled return makes it through the system before the paper return starts processing, there wouldn't be a delay though the filer would probably get a letter asking "What did you want us to do with this?" once the paper return starts getting processed.

OTOH, if the efiled return is still in processing when the paper return enters the system, then everything gets put on hold while the aforementioned letter gets sent out. Then once the processing center gets the response on what the filer intended (which will have to be mailed in and then get stuck in the same backlog as all the other print items) the returns will go through the amended return processing pipeline, which could be an additional 16 weeks plus the usual processing delays.

Yeah, chances are the efile return would probably get through first (I was helping a caller today who filed their 2019 return over 9 months ago and it hadn't even started processing yet, the only way I knew that we had the return at all was that the check he sent with it had been processed with the code indicated it had received with a return), but there is the risk that efiling when a print return is already been submitted would get things even more turbofucked than they are now.

Antivehicular posted:

Get an appointment, imho. It's far more likely that your existing return is experiencing processing delays than that it got lost, and a second copy will get flagged as a duplicate and cause more delays.

Yeah, call the appointment line (844-545-5640), tell them want the appointment, and they'll access the account as part of verifying your identity for the appointment (it's a requirement we have for setting the appointments) and may be able to give you an update over the phone. I'm mentioning that because one of the stupid hoops we have to jump through on the appointment line is that if someone just wants help and accepts it over the phone, then they get transferred to our standard phone line, whereas if the caller specifically says they want an appointment the scheduler will as part of the above scheduling procedure also try to see if they can help you over the phone right then (but will still schedule the appointment if needed of course).

Alternatively, try calling the toll-free line (800-829-1040) toward the end of the day (they're open 7AM-7PM local time as long as you're in the continental US, same as the appointment line), especially if you're not in the East Coast timezone. That has the bulk of the US population so once it falls off the national lines at 7PM EST the call volume drops quite a bit. In our West Coast call sites the lines actually have dead space between calls sometimes in the later hours because of that.

It's definitely a good idea to find out what's going on because it's entirely possible the print return's sitting untouched on a pile somewhere but it could easily be in processing and experiencing delays as Antivehicular said and it could possibly even be something where the IRS sent out a letter asking for more information to complete processing the return or something similar that got lost in the mail, and in those cases we can either get the letter reissued or let you know what's needed and how to send it in.

# ¿ Mar 20, 2021 03:38

Peyote Panda: Mar 10, 2019

PageMaster posted:

In my ongoing tax adventures for filing taxes while having done an early IRA withdrawal due to disability, I've talked with:

1) Finance institute which tells me they can't certify eligibility for disability, only the IRS, and so withdraw will be coded as early withdrawal on 1099-R

2) TSP, which tells me that they can't certify eligibility, but that does not mean I'm not, but only IRS will do that so they can't code as a disability qualified distribution and only as an early withdraw on the 1099-R.

3) IRS tax support: agent certified on the phone that I meet the requirements for the IRS to view my withdrawals as qualified distributions, but that there is no way to actually do this on a tax form.

4) CPA, which prepared and submitted two "corrected 1099-R's" which will flag me with the IRS who will then send me a naughty letter because my 1099-R amounts don't match (and also have the IRS working with the financial institutes to get a correct 1099-R), after which we will get a tax intervener who will talk with the IRS to explain why taxes are filed as they are and most likely (hopefully) we move on; if not, we go to tax court (Whatever that is) to solve it there. That seems like an awfully indirect and potentially incorrect way to get where we're trying to go, despite everyone saying we are actually understanding the IRS rules correctly. It's been 6 weeks to get here and we're about to push the button and just file so I'm wondering if anyone has any experience or knowledge on this that I can help unscrew this issue before we just run with it.

Just to make sure I understand everything correctly, you are considered permanently and totally disabled and thus qualify for the exception for the early withdrawal penalty for your IRA, but the 1099-Rs show it as an early distribution, no exceptions (Box 7 has a code of 1). If that's the case, you should be able file a Form 5329 with your return. Part 1 of that form has provisions for indicating the exception for the early distribution even if it's not coded that way on the 1099-Rs themselves. If you have any documentation of the disability you may want to include that with the return as a supporting document (even if you're filing electronically, the efile software should have provisions to download and attach scanned forms). It doesn't have to include detailed or extensive documentation at this point, essentially just something showing the medical determination that you were certified permanently and totally disabled at the time of the distribution.

If you're submitting "corrected 1099-Rs", that should really be done using a 4852 to report the correct information and attach the 1099-Rs as a supporting document for that form. However, unless I'm missing something the first option above would be the way to go.

I'm just uncertain at this point as this kind of coding issue isn't an unusual circumstance for an IRA distribution, so I'm not sure why the people in parts 3 or 4 of the above either weren't aware of or didn't suggest either of the above options.

Edit: the additional form referred to in that TaxSlayer link is the same form I was referring to, the 5329.

# ¿ Mar 24, 2021 01:37

Peyote Panda: Mar 10, 2019

PageMaster posted:

IRS help line couldn't figure out how to do this, and the CPA is using the corrected 1099-R where they can put in the code for qualified distributions, change the taxable amount, and write a paragraph at the bottom on why. I've asked them to include my medical documents in the return as well now.

For that, I'd suggest filing a 4852 for each 1099-R in question with the original 1099-Rs attached as supporting documents. That's the standard form used for filing with an incorrect or missing W2 or 1099-R and it allows reporting the corrected information with specifically delineated sections on the form where you can explain what changes you made and why (as well as your attempts to get a corrected form) so it's immediately obvious to the processing center what's going on.

That may be what the CPA is referring to as the "corrected 1099-R", but from what you described it sounds like he's just going to input the 1099-Rs with the changes and add a note. The 4852 does the same thing, but makes the situation much clearer to submission processing and may immensely simplify any additional documentation or steps that are needed.

# ¿ Mar 24, 2021 02:31

Peyote Panda: Mar 10, 2019

PageMaster posted:

Thanks for this. I pulled up one of their draft returns they were working and it looks like the form you mentioned is what they were using. I think the CPA is lining up with your recommendation at least.

Cool! About the only other thing I'd recommend (and again, the CPA may be doing this already) is specifically citing that the non-taxable qualified parts of the Roth IRA distribution meets the Qualified Distribution rule in IRS Publication 590-B even though it is not coded that way on the 1099-R. I'm just throwing that in because sometimes citing the specific source of the IRS rules in question may help with processing. Basically anything you can do to make things explicit and minimize the amount of actual research needed at the processing center can help, especially at this time when they're harried more than usual.

No guarantees though. I remember one case where I was looking over the scanned documents the taxpayer's accountant had sent in which included a photocopied page of the publication with the specific rule the filing was relying on highlighted and underlined and the processing center still sent the equivalent of a "Durrrr, I don't get it" notice. :rolleyes:

# ¿ Mar 24, 2021 03:53

Peyote Panda: Mar 10, 2019

CainFortea posted:

The reason is because I can't get a stimulus until I file, and I can't get my return, and i've been out of work for over 3 months due to a neck injury I only recently got fixed.

But it sounds like a loving nightmare to fix after the fact, so I guess i'm waiting.

Just to clarify, it's not about fixing it after the fact. You wouldn't get any stimulus payment until the return is fully processed and if you file with a missing or incorrect 8962 you'll run into that delay previously mentioned. The marketplace also reports their information to the IRS, so if a 1095-A was issued under your Social Security Number and there's no 8962 or an incorrect one attached to the return it's going to get flagged automatically and a 12C letter will get sent out asking for you to send in the needed documentation and then your return will enter the hellworld of manual processing.

Speaking of which, a quick head's up to you preparers out there: the ERS system right now that sends out those letters requesting additional information when needed is massively more hosed than usual right now. In previous years, returns that seemed to be missing information or documents got flagged and then reviewed pretty quickly (within a few days) where either the processing center figured it out or sent the 12C letter requesting specific additional information to finish the return. But I've been seeing a bunch of this years returns sitting in ERS for weeks now in their initial status where we've had it for longer than the normal processing timeframe and no one's even actually looked at it to see what's wrong yet. The system that flags these for review doesn't indicate what the actual potential issue is so we can't even tell callers what might be the problem except in a few obvious cases (self-employment income with no Schedule C or SE attached or the like).

To add to the hilarity, when the return is in that status it no longer shows up in Where's My Refund at all so it looks like the return has disappeared entirely, which isn't exactly helping taxpayers enhance their calm.

Overall, adding up to be a great fuckin' tax season.

# ¿ Mar 24, 2021 04:12

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# ¿ Apr 28, 2024 13:21

Peyote Panda: Mar 10, 2019

Pungent Mammy posted:

My 2019 tax return still has not been processed by the IRS. I haven't received either of the last two rounds of stimulus payments despite being eligible, and I assume the reason for that is that there is no 2019 return in the IRS's system. Am I going to be able to claim a credit for both of these stimulus payments on my 2020 taxes?

Yes and no. The only way to get the second payment now would be to claim it using the Recovery Rebate Credit on your 2020 return. The 1st and 2nd payments are no longer being issued as stimulus payments. The third payment is probably waiting for either a 2019 or 2020 return to be processed to provide info on your eligibility and how to send that payment, though to be honest that process has been all over the place with no clear guidance on how that's being decided.

# ¿ Mar 25, 2021 19:08

The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > US Income Tax Thread: Bank error in your favor! GO DIRECTLY TO JAIL.

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