Author Topic: Did the IRS commit a typo and how do I get it fixed??  (Read 2644 times)

resy

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Did the IRS commit a typo and how do I get it fixed??
« on: May 12, 2016, 11:33:02 AM »
I am so frustrated right now.
I was expecting a return of 3500 this year but I owed 1000 (I know, I know...)
Ok, so that would leave me roughly $2500 right? Wrong! I got back less than $1000.
Ive checkes the refund part of the website, etc and I am convinced it must be a typo but I cant get a hold of an actual human and don't know what to do.
On the notice I received I was informed that $5xx was withheld for past debts (this would be about half of the 1k I owed from last year-state kept my state which was coincidently around 500 so debt should be paid off with that) but then the kicker:
Your refund is 3100 but we are keeping $5xx so your new total is $1500.  That math is faulty.
Does anyone know how I can find out though a human where a couple thousand dollara disappeared to?

NoStacheOhio

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Re: Did the IRS commit a typo and how do I get it fixed??
« Reply #1 on: May 12, 2016, 11:42:13 AM »
Wait, did you owe $1,000 or pay $3,100 over?

tarheeldan

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Re: Did the IRS commit a typo and how do I get it fixed??
« Reply #2 on: May 12, 2016, 11:51:06 AM »
Google search says if you have the patience to wait on hold:

"Call 1-800-829-1040

To speak to someone use the following prompts

Select your language

Menu 1 - Press 2

Menu 2 - Press 1

Menu 3- Press 3"

MDM

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Re: Did the IRS commit a typo and how do I get it fixed??
« Reply #3 on: May 12, 2016, 06:15:33 PM »
Wait, did you owe $1,000 or pay $3,100 over?
+1

resy, perhaps you could start with line 44 of your form 1040 and list the line numbers and any non-zero dollar amounts?  Although, if the situation also involves amounts past due...?

ender

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Re: Did the IRS commit a typo and how do I get it fixed??
« Reply #4 on: May 12, 2016, 06:57:20 PM »
Wait, did you owe $1,000 or pay $3,100 over?
+1

resy, perhaps you could start with line 44 of your form 1040 and list the line numbers and any non-zero dollar amounts?  Although, if the situation also involves amounts past due...?

+1


ender

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Re: Did the IRS commit a typo and how do I get it fixed??
« Reply #5 on: May 13, 2016, 01:42:28 PM »
Sorry guys for by the confusion, so we over paid total $3500 between federal and state this year (our refund) but we owed $1000 from last year's taxes (with interest alreadt factored in)
So we were expecting closer to $2500 than the $900 we got.
I did call that number and it just has me going around in loops, I wil try those menu options during my lunch.

And you've received both refunds? State and federal?

MustacheAndaHalf

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Re: Did the IRS commit a typo and how do I get it fixed??
« Reply #6 on: May 13, 2016, 04:18:23 PM »
As a cheap alternative to a tax attorney, maybe you should look up an "enrolled agent" to help you sort this out.  An enrolled agent has passed a tough IRS exam, and can help people with tax issues.  Their rates are going to be a fraction of what a CPA or attorney charges per hour.  You want a third party expert to take a look for two reasons: to see if you misunderstood something, and to see what to do next.

If you don't want to pay someone for help at this point, a letter to the IRS might help.. but it could get ignored for a significant amount of time as well.  It's probably a good idea to use the USPS mail that documents that you sent the letter, while keeping a copy of your letters to the IRS.  When it's dragged on a bit without much progress, you might switch to the Taxpayer Advocate Office ("TAO").  That's part of the IRS (sort of), but they're basically a taxpayer problem solving branch.

But I'd suggest finding an enrolled agent to save you time and frustration.

With This Herring

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Re: Did the IRS commit a typo and how do I get it fixed??
« Reply #7 on: May 13, 2016, 09:05:36 PM »
We really can't help you with the small amount of info you have given.  If you really want us to look at it, it might be easiest if you put white paper scraps over ALL identifying info (your name, address, SSN, etc.) on the notice AND your 1040, then scan them to a PDF file for us to see.  (Or, if you have a nice PDF editor program, black out stuff on the scan and then re-PDF it.)

Check to make sure that you have all pages of your notice.  Sometimes a later page will have information that helps explain what happened on the first page.

Check your files for other notices from the IRS.  The IRS will apply your overpayment to any amounts owed for personal income tax from last year, other prior years, old penalties and interest from prior years, FICA owed (may be an issue if your are self-employed), and possibly other federal taxes owed, even if they are not income taxes.  It is very likely that your refund was reduced for valid reasons, and it is not very likely (though possible) that the IRS has a math error.  There is a chance that there is information missing from the notice as to how the "missing" money has been applied.

If you owed money from last year, remember that you would have interest AND PENALTIES.  Also, those interest and penalty numbers keep adding up until you pay.  If the last notice you got about them was old, the interest and penalties will have increased.  If you owed money from last year and didn't set up a payment plan with the IRS, your interest and penalties will be pretty high.

What you have written is confusing, as you keep mentioning both state and federal amounts.
Just to clarify:
If you overpay one government entity and underpay another, the overpaid one doesn't send the overpayment to the underpaid one.  So, if you overpaid the state, the state will return your money to you or apply it against other taxes for the state, but it will NOT send the money to the IRS.

If, after going through all your notices, you don't find the answer and still need to call the IRS, make sure you have all your notices in front of you.  Having the notice numbers/your case number at hand, as well as all the calculations, will make it easier to know you are looking at the same thing as the IRS rep.  I would suggest you make photocopies of your notices before you make the call.  Then you can write all over the photocopies and take notes on what the rep says and still have the clean originals.  You can also run through the list of notices for your SSN with the IRS and make sure that you are not missing any (through postal service error or a member of your family tossing the wrong envelope).