5th Annual Tax Thread - 2007

[ShotgunSteven]

How accurate does the estimated date for a directly deposited refund tend to be?

 

[EagleKeeper]

2-3 Fridays unless something happens from processing has always been on target.

For those that are outside of CONUS, electronic deposit may take an extra second or two because of the distance.

 

[kranky]

I would like to thank EagleKeeper and CPA for their impressive work in the tax thread again this year. I can't think of what could be more "Elite" than this service to the AT community.

Thank you both.

 

[Qacer]

I got a Form 8009 from the IRS saying that I have to put my signature on my amended return. My question is: where do I send the signed copy?

My original amended return was sent to a Atlanta, GA address. The only return address I see is on the envelope, and it's addressed to the IRS in Bensalem, PA. Do I send it there?

Thanks!

 

[EagleKeeper]

Send it to Atlanta

 

[yelo333]

I received a refund check for 100x what it should have been. Here is what happened:

Assume my withholding was $10. (it wasn't) Assume my tax liability is $0.

I mistakenly put "10.00" on the dollar side of my withholding, instead of 10|00, like it should have been. I also did this for every line after that, so the math worked out that the computer read that I wanted a refund of $1000 because I put "10.00" in the dollar side.

So I got a check for $1000 a couple weeks ago. It should have been $10.

I have currently received two recommendations:
1) Cash the check, but don't spend it. Wait to get a letter from them, then write them a check for $990.
2) Send the check back with an amended return and request a $10 check.

Ideas? Is one of these two options preferable? Is there a better (third) option? Thanks!

 

[Ns1]

Originally posted by: yelo333
I received a refund check for 100x what it should have been. Here is what happened:

Assume my withholding was $10. (it wasn't) My tax liability is $0.

I mistakenly put "10.00" on the dollar side of my withholding, instead of 10|00, like it should have been. I also did this for every line after that, so the math worked out that the computer read that I wanted a refund of $1000 because I put "10.00" in the dollar side.

So I got a check for $1000 a couple weeks ago. It should have been $10.

I have currently received two recommendations:
1) Cash the check, but don't spend it. Wait to get a letter from them, then write them a check for $990.
2) Send the check back with an amended return and request a $10 check.

Ideas? Is one of these two options preferable? Is there a better (third) option? Thanks!

I would advise you to call the IRS hotline and see what they would want you to do. Remember to write down names and ID's

Tax Assistance: 1-800-829-1040 - Tax assistance for Taxpayers.


But don't cash the check.

 

[EagleKeeper]

Originally posted by: Ns1

Originally posted by: yelo333
I received a refund check for 100x what it should have been. Here is what happened:

Assume my withholding was $10. (it wasn't) My tax liability is $0.

I mistakenly put "10.00" on the dollar side of my withholding, instead of 10|00, like it should have been. I also did this for every line after that, so the math worked out that the computer read that I wanted a refund of $1000 because I put "10.00" in the dollar side.

So I got a check for $1000 a couple weeks ago. It should have been $10.

I have currently received two recommendations:
1) Cash the check, but don't spend it. Wait to get a letter from them, then write them a check for $990.
2) Send the check back with an amended return and request a $10 check.

Ideas? Is one of these two options preferable? Is there a better (third) option? Thanks!

I would advise you to call the IRS hotline and see what they would want you to do. Remember to write down names and ID's

Tax Assistance: 1-800-829-1040 - Tax assistance for Taxpayers.


But don't cash the check.

Seconded

 

[yelo333]

Originally posted by: Ns1
I would advise you to call the IRS hotline and see what they would want you to do. Remember to write down names and ID's

Tax Assistance: 1-800-829-1040 - Tax assistance for Taxpayers.


But don't cash the check.

Thanks for the advice, Ns1!

One more related question: When I call, is it in my best interest to give them my SSN when/if they ask for it?

 

[EagleKeeper]

Originally posted by: yelo333

Originally posted by: Ns1
I would advise you to call the IRS hotline and see what they would want you to do. Remember to write down names and ID's

Tax Assistance: 1-800-829-1040 - Tax assistance for Taxpayers.


But don't cash the check.

Thanks for the advice, Ns1!

One more related question: When I call, is it in my best interest to give them my SSN when/if they ask for it?

If you do not, they can not check their records and provide you the proper advice.
With the SS they can check if their system has issue any type of correction/flags/warning/warrants, etc has been done if the system has detected the error.

 

[Turin39789]

can I get in an easy 2008 tax question?

I'm working a few events for a caterer this year, what do I need to keep my reported earnings under in order to avoid the deadly 1099-misc. 600?

 

[EagleKeeper]

Originally posted by: Turin39789
can I get in an easy 2008 tax question?

I'm working a few events for a caterer this year, what do I need to keep my reported earnings under in order to avoid the deadly 1099-misc. 600?

First is to keep track of all direct expenses
Second, identify what indirect expenses are applicable.

If you want to avoid the 1099 then do not work.
You will have to pay taxes on the income wheter or not you get a 1099 or not.

It is up to the caterer if they generate a 1099 to you.

 

[slsmnaz]

Embarrassing question but I'm going to put it out there anyway:

I filed my taxes this year and I'm due a rebate. It was delayed and I received a letter from the IRS saying I did not file in 2002 or 2003 (I know why and I just had some personal crap going on. Stupid I know) and they were holding my refund until I filed those years. I talked to them, got all the info I needed and just completed the 02 & 03 returns. I came up with a refund of $228 in 2002 and I owed $109 in 2003.

My question is am I going to get screwed even though I should have come out ahead by $119 between the 2 years. I think the limit is 2 yrs on filing to collect a refund and there is no limit on money due the gov't.

I'm willing to let the $119 slide if they are

 

[CPA]

Originally posted by: slsmnaz
Embarrassing question but I'm going to put it out there anyway:

I filed my taxes this year and I'm due a rebate. It was delayed and I received a letter from the IRS saying I did not file in 2002 or 2003 (I know why and I just had some personal crap going on. Stupid I know) and they were holding my refund until I filed those years. I talked to them, got all the info I needed and just completed the 02 & 03 returns. I came up with a refund of $228 in 2002 and I owed $109 in 2003.

My question is am I going to get screwed even though I should have come out ahead by $119 between the 2 years. I think the limit is 2 yrs on filing to collect a refund and there is no limit on money due the gov't.

I'm willing to let the $119 slide if they are

It's 3 years on the refund. Penalties and interest will probably be assessed on the 2003 filing. $50 Penalty at least. You may be able to get the interest abated by asking them.

 

[EagleKeeper]

Take your 2002 and 2003 paperwork to the local IRS office and see what can be worked out with an investigator.

It is best to call in advance and schedule an appointment.

If you have a simple return and a courteous attitude, you may get off lightly.

Otherwise all bets are off and you go into the fight with one hand tied behind your back.

 

[Mermaidman]

Why are the 2nd and 3rd quarterly tax payments due on Jun 15 and Sep 15? I would think that a calendar quarter ends Jun 30 and again on Sep 30, so the taxes should be due in July and October. Anyway, I'm mailing a payment today. Anyone know if the "due date" is the postmark date or the date that the IRS receives a payment?

edit: Thanks for your response below

 

[EagleKeeper]

Postmark will work