Author Topic: old IRS letter claiming I don't get full refund  (Read 3114 times)

bradleylsmith

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old IRS letter claiming I don't get full refund
« on: March 07, 2015, 12:21:53 PM »
I got a letter last year regarding my 2013 taxes that I'm just now trying to deal with. We were entitled to a $5400 refund due to paying in too much but only received half of that. I don't have the letter anymore but the gist of it was that I claimed to have two kids and I only have one. The thing is, I have two kids, the 1st was born 9/1/2011 and the 2nd was born 3/ 3 / 2013. Any ideas of how to get the rest of my refund owed? I don't know where to begin.

Cathy

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Re: old IRS letter claiming I don't get full refund
« Reply #1 on: March 07, 2015, 12:47:26 PM »
When you get a letter adjudicating a claim against you, you should begin taking steps to respond immediately. "Taking steps" could involve some preliminary research, such as to find out any limitation periods that may apply. In any case, you certainly should not lose the letter.

In terms of just getting a copy of the letter, you can certainly do that using the IRS's Freedom of Information process: http://www.irs.gov/uac/IRS-Freedom-of-Information

Without actually seeing the letter, we can't say for sure what was really contained within, which would be relevant to any limitation periods.

That said, it looks like you could potentially still be within the limitations period to challenge the adjustment to your tax return. According to 26 USC 6511, a claim for a refund of overpaid tax must be filed by the later of (i) 3 years from the time the return was filed, and (ii) 2 years from the time the tax was paid.

Since your complaint is with the 2013 tax year, you filed your 2013 tax return no earlier than January 1, 2014. That means you have until at least January 1, 2017 to file a claim for overpaid tax in respect of that year.

In your shoes, I would do the following:

1. Obtain a copy of the letter using the FOIA process. This is mostly for your records and is probably not necessary for the next steps. You probably do not need to wait to receive it before moving on to the next steps. You can perhaps even skip this step.

2. Obtain a tax transcript for the tax year 2013. This will show you the changes that the IRS made to your return for the year 2013.

3. File an amended return for 2013 on Form 1040X where you again claim two children and request a refund based on same. Include the evidence that you have two children.
« Last Edit: March 07, 2015, 01:13:59 PM by Cathy »

Wile E. Coyote

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Re: old IRS letter claiming I don't get full refund
« Reply #2 on: March 07, 2015, 01:38:39 PM »
Did you include both children's correct SSN on the return.  I believe that is required.  Perhaps it was entered incorrectly?

bradleylsmith

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Re: old IRS letter claiming I don't get full refund
« Reply #3 on: March 08, 2015, 12:02:43 PM »
thank you you're right my older kid's SSN was wrong. I'll file 1040X and get the rest of the refund. Thanks!!

Cathy

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Re: old IRS letter claiming I don't get full refund
« Reply #4 on: March 08, 2015, 12:08:53 PM »
You probably realise this, but just to avoid any further errors, the "original amounts" you specify on Form 1040X will be the amounts as changed by the IRS as a result of their letter, not the amounts you originally specified when you filed Form 1040. That's why I recommended obtaining the tax account transcript, so that you would know what the "original amounts" actually are. (Note that you want the "tax account" transcript, not the "tax return" transcript.) However, if you think you know exactly what they changed, I suppose you don't need to obtain the transcript.
« Last Edit: March 08, 2015, 12:13:15 PM by Cathy »

bradleylsmith

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Re: old IRS letter claiming I don't get full refund
« Reply #5 on: March 09, 2015, 12:01:01 PM »
I did not know that thank you for that. I did find the letter (thankfully) so I know what my refund changed to. They don't mention specific number changes, for example to earned income credit (EIC) or exemptions. Do I have to fill out 1040X in it's entirety or can i just leave it blank with the explanation and the new SSN?

bradleylsmith

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Re: old IRS letter claiming I don't get full refund
« Reply #6 on: March 09, 2015, 12:04:36 PM »
oh nevermind I see on the letter they detail out which lines changed and the original values, they make this easy if you know what you're doing ahead of time. Thanks for all the help!

Cathy

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Re: old IRS letter claiming I don't get full refund
« Reply #7 on: March 09, 2015, 02:19:09 PM »
I was just reading the Form 1040X instructions and I noticed something else that I should draw your attention to:

  • If you are changing the value for the Earned Income Credit (EIC), you need to complete and attach the 2013 Schedule EIC to your Form 1040X.
  • If you are changing the value for the Child Tax Credit, you need to complete and attach the 2013 Schedule 8812 to your Form 1040X. Most people only need to complete Part I of Schedule 8812. If, after receiving this refund, you will have paid no tax at all in 2013, then you also should complete Parts II through IV (in that case, the 2013 Child Tax Credit Worksheet that you need to use to complete line 1 of Part II is found on page 46 of the 2013 Form 1040 instructions).

If you are changing those lines and don't include those additional completed forms, then 3.11.6.5 et seq of the Internal Revenue Manual says that the person who processes your Form 1040X is supposed to write to you and ask you to complete the additional forms. I'm guessing you probably want to avoid any delay from that. However, if you've already filed Form 1040X, then I would just wait for them to respond.
« Last Edit: March 09, 2015, 08:09:42 PM by Cathy »