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Tax refund question
Posted on 2/19/15 at 4:17 am
Posted on 2/19/15 at 4:17 am
I'll try and make this timeline as easy to concise as possible.
April 2014: Receive a letter from IRS that I owe ~$7500 in taxes, penalty, interest from a mistake in my taxes from fiscal year 2012
April 2014 - December 2014 - correspond with IRS and CPA to refile in hopes to reduce amount owed
December 15, 2014 - Refile and turn in all IRS forms and wait for a response to begin negotiations to forgive penalties
February 3, 2015 - Turn in my taxes for 2014
I checked my bank account this morning and noticed my federal refund was deposited minus around 6k. Did they take the money owed from my refund without allowing me to try and get the penalties removed? If so what is the best way to proceed?
April 2014: Receive a letter from IRS that I owe ~$7500 in taxes, penalty, interest from a mistake in my taxes from fiscal year 2012
April 2014 - December 2014 - correspond with IRS and CPA to refile in hopes to reduce amount owed
December 15, 2014 - Refile and turn in all IRS forms and wait for a response to begin negotiations to forgive penalties
February 3, 2015 - Turn in my taxes for 2014
I checked my bank account this morning and noticed my federal refund was deposited minus around 6k. Did they take the money owed from my refund without allowing me to try and get the penalties removed? If so what is the best way to proceed?
3
Posted on 2/19/15 at 6:18 am to KJason
Probably
Take this info to your CPA
Take this info to your CPA
Posted on 2/19/15 at 6:59 am to KJason
you definitely need to find an EA or CPA to assist you.
The audit process has a lot of disjointed paths where processes are not timely connected
The audit process has a lot of disjointed paths where processes are not timely connected
This post was edited on 2/19/15 at 7:08 am
Posted on 2/19/15 at 10:55 am to KJason
You filed an amended 2012 return, correct... not a second 2014 Form 1040 original return?
Was the amount owed on the amended return around 6K? Did you send in a payment with the amended return?
6 weeks is probably not enough time for the IRS to process the amended return and update the other collections systems.
Water under the bridge... but if you ever get in this spot again, file an extension to give everything time to work itself out.
If the IRS was under the opinion that you still owed 6K, yes, they will hold that 6K. You should get a letter soon from the IRS indicating why they withheld the money.
Was the amount owed on the amended return around 6K? Did you send in a payment with the amended return?
6 weeks is probably not enough time for the IRS to process the amended return and update the other collections systems.
Water under the bridge... but if you ever get in this spot again, file an extension to give everything time to work itself out.
If the IRS was under the opinion that you still owed 6K, yes, they will hold that 6K. You should get a letter soon from the IRS indicating why they withheld the money.
Posted on 2/20/15 at 6:53 am to LSUFanHouston
Thank you for your responses
I spoke to the IRS yesterday and they said they have a record of receiving my amended 2012 return on December 15 but it was never processed.
Since it sat unprocessed my notice was transformed into a bill and they purged my amended return from their system. I have to resubmit the 2012 return for "reconsideration" and wait for them to process everything. I asked the agent to email a summary of our conversation to me and she told me "We don't really do email here".
What is the best way to obtain proof of what happened in case they change their story to say I didn't turn it in on time. Also does the IRS pay any additional CPA fees postlethwaite & netterville tries to charge me since it was their mistake? I have already paid them $800 to make minimal changes and file an amended return so I'm not paying them one more penny.
I spoke to the IRS yesterday and they said they have a record of receiving my amended 2012 return on December 15 but it was never processed.
Since it sat unprocessed my notice was transformed into a bill and they purged my amended return from their system. I have to resubmit the 2012 return for "reconsideration" and wait for them to process everything. I asked the agent to email a summary of our conversation to me and she told me "We don't really do email here".
What is the best way to obtain proof of what happened in case they change their story to say I didn't turn it in on time. Also does the IRS pay any additional CPA fees postlethwaite & netterville tries to charge me since it was their mistake? I have already paid them $800 to make minimal changes and file an amended return so I'm not paying them one more penny.
Posted on 2/20/15 at 7:07 am to KJason
quote:
IRS
quote:
"We don't really do email here".
Poli board but
Posted on 2/20/15 at 7:15 am to DawgCountry
quote:
Poli board but
I was really annoyed when she said that but I had to stay polite because I definitely didn't want to piss off the IRS.
Posted on 2/20/15 at 8:44 am to KJason
I wish I could say I was surprised at your story, but I can't.
The call center staff don't do e-mail to taxpayers, that is true. Hopefully you got their name and badge number, but otherwise, there isn't much they can do. They are supposed to document the file on their end, which sometimes happens and sometimes does not. If you did get the name and badge number, and you have the day and time of the call, they can pull the recorded phone calls if need be.
However, given what you have said, what they said really isn't important. In any event, they still need to process the amended return. "Reconsideration" is not a thing. I am assuming you never signed the notice agreeing to the increase in liability.
Get a new copy of the amended return (make a copy of your copy if you have to), sign it, and send it in.
Alternatively, you can contact the national IRS taxpayer advocate, explain to them the situation, and see what they can do. They may be able to find the unprocessed amended return and get it through the system.
In the end, if the amended return is accurate, you will get the right amount of money back.
I've never seen IRS pay professional fees in a situation like this, but they do pay interest.
The call center staff don't do e-mail to taxpayers, that is true. Hopefully you got their name and badge number, but otherwise, there isn't much they can do. They are supposed to document the file on their end, which sometimes happens and sometimes does not. If you did get the name and badge number, and you have the day and time of the call, they can pull the recorded phone calls if need be.
However, given what you have said, what they said really isn't important. In any event, they still need to process the amended return. "Reconsideration" is not a thing. I am assuming you never signed the notice agreeing to the increase in liability.
Get a new copy of the amended return (make a copy of your copy if you have to), sign it, and send it in.
Alternatively, you can contact the national IRS taxpayer advocate, explain to them the situation, and see what they can do. They may be able to find the unprocessed amended return and get it through the system.
In the end, if the amended return is accurate, you will get the right amount of money back.
I've never seen IRS pay professional fees in a situation like this, but they do pay interest.
Posted on 2/20/15 at 8:46 am to KJason
Also, did P&N file the original return? And if so, was the mistake their mistake or your mistake (i.e. you didn't tell them about something).
If it's their mistake, they should not be charging you to fix their mistake. If it's your mistake, then yeah, they will charge.
If it's their mistake, they should not be charging you to fix their mistake. If it's your mistake, then yeah, they will charge.
Posted on 2/20/15 at 8:57 am to LSUFanHouston
Thank you for your advice.
I filed the original return with the mistake so I understand them charging me for the amendment the first time around ($800 felt a little steep since I gave them my original return and they made minor corrections). I just don't want to pay again for their mistake.
FYI: The entire problem started from misplacing one decimal.
$1900 vs $19000 reported income from a 1099
17k increased income + penalties + interest + CPA fees = one huge headache
I filed the original return with the mistake so I understand them charging me for the amendment the first time around ($800 felt a little steep since I gave them my original return and they made minor corrections). I just don't want to pay again for their mistake.
FYI: The entire problem started from misplacing one decimal.
$1900 vs $19000 reported income from a 1099
17k increased income + penalties + interest + CPA fees = one huge headache
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