I know this is long, but I have weaved a web that I now need help getting out of. I wanted to provide all the information I could.
In April, 2012, I filed my clients 2011 1040 return using her ex-husband's social security number IN ERROR. The return had an amount due of $2K that was direct drafted from my clients individual (not joint) bank account. However, because I used the wrong SS# the $2K was credited to her ex-husbands account. This was a hostile divorce, and asking the ex-husband to give the money back is out of the question.
I did not know anything was wrong with the filed return until October 15 when the ex-husband's Attorney/CPA called and told me he could not e-file the ex-husband's return because the IRS said that SS number was already used.
I called the IRS and asked for direction. They suggested I file a 1040X with the correct SS# and a letter of explanation attaching a copy of the originally filed erroneous 1040. They also suggested I send copies of the bank statement showing the IRS debited $2K from my client's bank account and ask they transfer the payment from the ex-husband's account to my client's account.
I complied all of this and sent it to the IRS, who received it on October 22,
2012. However, yesterday (3 month later) when I looked at the client's transcripts in e-services, there is no information at all.....As if the return was never filed.I called the practioner's priority line and she told me I had done all wrong. That I filed an amended return for a return that was never filed. She told me the account had been "assigned" to account management on 01/14/2013. She told me to file an original 2011 1040 with copies of the W-2, but could not tell me what to do about the fact the $2K due on the return had already been paid, but credited to the wrong account.
It would be easy enough to file another 1040 using the correct SS#, however, by looking at the Wages and Income Transcript, I have found that some income and expenses were omitted on the originally filed (bad SS#) and amended return (good SS#). In addition one of my clients W-2's does not show on the transcript. That W-2 had $30K in income and $6K in withholding. The W-2 does have the correct SS# on it.....so I have no idea why the W-2 is not showing on her account, but the IRS says she owes the extra $6K because they have no record of that W-2...but that may be worked out when they see copies of the W-2s.
I have not refiled anything....I am wanting some opinions on how to correct this mess. Any advise is appreciated.
--Marie