Explain this letter from the IRS

Sep 30, 2012 5 Replies

On our 2011 tax return, as filed, we had payments of $17000, tax of $9391, and an overpayment of $7609 to be credited to our 2012 tax return.



Today, we received a letter from the IRS that says, "We changed your



2011 form 1040 to match our records of your estimated tax payments, credits applied from another year, and/or payments received with an extension to file. As a result, you are due a refund of $0.00"

It then shows a summary of : Payments of $17000, tax of $9391, and amount applied to 2012 estimated taxes of $7609, and Refund due of $0.00.



Their figures agree with my tax return, as filed, to the penny.


they need to keep the Post Office busy?

I had several clients who received similar letters this year. There appeared to be circumstances where my software (or the idiot using it [me]) entered either payments with extension applications or payments with the filed returns on the wrong line. The IRS letters moved the amounts to the correct line with no change in balance due/refund.

Ira Smilovitz

well, they have gotten better then. When I made a similar mistake a couple years ago, they sent me a six figure check. I had to return it . . .

to be circumstances where my software (or the idiot using it [me]) entered either payments with extension applications or payments with the filed returns on the wrong line. The IRS letters moved the amounts to the correct line with no change in balance due/refund.

That might explain it.

I'm too lazy to go to the Post Office for certified mail, so I enclose a check for $25. If the check clears, I know they've received my tax return.

With nothing else to go on, I add it to estimated tax payments (line

63). They musta moved it to another line.

On a related topic: My wife has a very old bank account for which they don't have her SS number. She is subject to backup withholding on that account. Each year, the backup withholding amounts to about $18, which I add to taxes withheld (line 62). How the IRS reconciles that is their problem, but they must as I never receive a letter questioning why the W2 withholding doesn't match line 62. Maybe because the amount is so trivial.

Or maybe because that's exactly where it belongs on your return.

Just to make sure you know, if she sends the bank a W-9 backup withholding will eventually go away.

Phil Marti VITA/TCE Volunteer Clarksburg, MD

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