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No, you don’t have to amend. The IRS won’t care about $16 either way.

But if you do decide to amend, wait for the original return to finish. If you amend too soon, your tax return will be on hold for 20 weeks, or for the amount of time it takes for an employee to work the amended. They won’t release the original refund until the amended is looked at.

Create an account at Social Security. See if the wages (W-2) is showing under your wage history. The IRS gets the W-2s from SS.

Perhaps if you can print out the SS wage history this will help along with copies of the W-2. Since you have a tax advocate, you need to work through them.

If it turns out that Social Security doesn’t have the W-2, there’s your problem.

And if I just let it go, I’d there any downside?

Not that I know of. You let the IRS keep your $7.

Leesbro63 wrote: ↑Sat Mar 25, 2023 12:08 pm There is no code next to the -$7 balance, but the last activity, dated April 12, 2021, shows code 570 "Additional account action pending".

So what should I do or avoid doing?

You need to call. The 570 will hold the refund until an employee reverses it.

I don’t recommend Mondays. Tuesday through Friday early morning.

You can try writing a letter. But generic correspondence could take weeks to get processed.

Are you viewing your account transcript? What codes do you see?

A code 570 is a refund hold. If it is not released with a 571, the credit balance will sit forever.

Either a phone call is warranted, or print out the transcript and attach a letter requesting the refund be released.

When you send a payment for no reason, the IRS will put a refund freeze code on the account. This prevents the computer from issuing an erroneous refund. The IRS thinks you may be amending and will owe $7. Therefore they freeze the credit balance waiting for you to provide paperwork or a reason for sending them a payment.

Glad to hear they started the trace over the phone. Certainly should be faster than mailing the form 3911.

I hope you get a resolution and a new check issued soon.

The OP filed 11 months ago and received a letter stating it was completed and refund issued. However, said refund was not received by taxpayer. Therefore, a call is warranted. Or as suggested, check the transcript. Either way, a call or payment trace is needed.

Create an account. https://www.irs.gov/individuals/get-transcript View your Account Transcript. Look for a code 846 for the refund. If you see it, and you did not get it, either file Form 3911 payment trace or call Customer Service.

If you need help reading the transcript, you can post the codes and we can try and help.

So codes to look for are 971 977 amended return filed. Code 290 or code 291 representing the tax adjustment. Code 766 are for credits. The code 846 is the refund.

Send the 1040x again, pages 1 and 2 with signatures. And all the forms that changed as a result of the amended. The IRS has your original return as a transcript. They don’t need the original.

https://www.irs.gov/taxtopics/tc653

You can pay the tax only when you submit the 1040X. The IRS will send you a bill for any interest and/or applicable penalties. Or you can add an extra amount to cover the interest and see what happens. If you overpay, they will refund it.

If the income is reported, the IRS will probably not flag it.

The other concern is the SE tax credits for Social Security. The SSN on the Schedule C and Schedule SE gets the credits. If the spouse is the one self employed, then the spouse should get the SS credits.

An option would be to have the schedule C report the income and back it out as an expense listed as reported under wrong SSN. Then report the income under the spouse. This will satisfy the IRS matching program and get the income reported to the correct taxpayer.

Then get the PayPal account registered to the correct SSN.

Macro wrote: ↑Sun Mar 12, 2023 5:49 pm Yes, that's exactly right. I'm just worried about what happens now, and if the IRS are waiting on a 1040 from me that will never come.

Either call and ask, or create an account and view your account transcript. https://www.irs.gov/individuals/get-transcript
Unfortunately there is system maintenance on Sundays.

Either way, you probably need to call.

Then, after my return is officially accepted, I would go to one of the 3 IRS approved payment processors and pay through them (I believe the lowest fee for a credit card payment is 1.87%). Is this correct/is there anything else to be aware of? I actually am getting a very small state tax (IL) refund. Can that separately just be deposited into my checking account? Federal and state are completely separate. You can pay federal anytime. You don’t have to wait to be processed. In fact, balance due returns are shuffled to the back of the line. They process refunds first so they don’t have to pay interest on late refunds. So don’t expect to see your account updated until after April 18. You can pay with a credit card. The IRS website has the opt...

Paper returns are hand transcribed by “data transcribers”. (Not key punched). Yes they have flat screen monitors and keyboards. They are seasonal workers hired every year during crunch time. Yes paper returns can have typos and data entry errors. Neither of which translate into an audit. The low level data entry clerks are just human typing machines. They do not analyze the numbers. That is reserved for higher level tax examiners or revenue agents. After the returns are entered, either electronically or by hand, the computer runs the audit program (DIF score). So all returns are subject to the same algorithms. https://www.irs.gov/businesses/small-businesses-self-employed/irs-audits https://www.irs.gov/newsroom/irs-update-on-audits Here’s an...

Identify verification can be random. I believe a certain % of returns are pulled at random for this. I don’t think TT or HRBlock or TaxAct etc. has anything to do with it.

Try FreeTaxUSA. You can enter and not submit. It’s free. Then compare. If you get the same result, then TT is correct. It’s hard to say why it appears to be 20% tax except that the additional $5,000 of income can affect the taxable SS and have a trickle down effect. You would need to look at the return before and after the $5,000 and see which lines of the tax return actually changed.

Schedule 1 line 9/10 is the total for other income. So that appears correct.

If you can view forms, the self employment has its own schedule. Schedule SE. Also there would be a Schedule 2.

The matching program that picks up 1099-R’s doesn’t start until 8-18 months after April 15 is over. If the 1099-R is coded G for rollover, the IRS knows that also. It won’t be pursued.

Some returns just take longer.

If the large refund is from withholding, make sure you have entered all numbers correctly. The IRS does verify withholding.

Create an account, if you wish, and you can view your Account Transcript. If you need help deciphering codes, you can post back here or try google. Many of the common codes are known.

Or try calling customer service. They may be able to see something you can’t see from home. Or they may give a standard answer read from a script.

Thanks for the update.

I also heard FreeTaxUSA is free for fed and small charge for state. No income limit that I know of.

https://irs.treasury.gov/rpo/rpo.jsf Use this tool to research tax return preparers near you or to determine the type of credentials or qualifications held by a specific tax professional. All tax return preparers are not in this directory. This directory contains only those with a PTIN who hold a professional credential or have obtained an Annual Filing Season Program Record of Completion from the IRS.

While I'm on the subject of freefilefillableforms, in the past years I just end up mailing everything: The printed return, copies of W2's and such, etc. I've always wondered if I actually need to do this, since I've basically entered all the information online, and I get an email saying "Your return has been accepted by the IRS." Always seemed a bit redundant, but I would rather be safe than sorry. Anyone know what I actually need to physically mail? Yikes! You do not do both. You either submit electronically OR file by mail. Never do both. If you submit electronically, you are done. You save a copy for yourself at home. If you choose to mail, yes you print and follow the instructions on what to stuff into the envelope. Go read t...

Or is there a third way that I haven't thought of. Prepare the 8606. Keep it at home in case the IRS comes knocking. Chances are they won’t. If the correct taxable amount ended up on line 4b the computers will not find a mismatch. If by chance you hear from the IRS, the 8606 is ready to go. You also have the 8606 for future record keeping. If you do decide to amend, please wait until your original return is finished. Since there’s no tax change, there’s no rush. Amending too soon causes the first return to be delayed until an employee reviews the amended and releases the original refund. They do this to avoid an erroneous refund. I don’t think this warrants a “superseding” return. A forgotten form that doesn’t affect the income or the tax ...

If it’s in box 3 other income, make sure you identify it as other income in TT. I don’t know how TT thinks this is self employment unless you told it.

plan to call them tomorrow. Do these types of calls turn into interview where the agent asks for reasonable cause and tries to access the situation over phone? Or even worse, agent starts reviewing my return and starts asking questions about items on the return? Or would it be more like I say "hello, I owe this much, but calling to request First Time Abatement, could you please review my account and let me know whether I qualify for FTA?" And the agent will review the account and let me know either way? The reason I am asking is because I am not a lawyer, not a native English speaker, and don't want unnecessary pair of eyes on my return ( I have nothing to hide, filled tax forms with 100% honesty but my tax situation was complex,...

Don’t confuse “spousal” benefits with “survivor” benefits. Very different.

In your sample scenario….Spouse (if at least FRA) would receive survivor benefits equal to your $3100. The way it really works is they still receive their own benefit (if they have their own) and an additional amount is added to equal your benefit.

https://www.aarp.org/retirement/social- ... efits.html “If the survivor benefit is higher, Social Security pays the retirement benefit first and tops it up to match the amount of the survivor benefit.”

This is not something you would see. It’s internal accounting details by social security.

The bank will reject. And IRS will issue a paper check. It could take 3-5 weeks for the paper check to be generated.

The IRS redesigned the W-4 about 2 years ago. No more allowances. They also changed the withholding tables to align better with the TCJA. If your company still has an old version W-4, it doesn’t translate well. You should submit a new W-4. Use the IRS withholding calculator to double check.

Actually a $500 refund is great. The goal is to break even. Right now you have $41 a month extra going to the feds. If you want that $41 in your take home, you can tweak the W-4.

The basis is the basis in traditional IRA. So if you contribute only, then the basis is carried forward. After you convert, the Roth basis is not entered anywhere.

Please clarify what you did in 2021 and on the 8606. Contribution only? Or both contribution and convert in the same year?

Publication 525 Repayments. Follow the instructions.

They can’t amend. The repayment occurred in a different tax year.

The taxpayer advocate is for situations where the individual has tried to get help from the IRS without out success.

The IRS is being uncooperative. If they wanted to help with any and all refund inquiries they wouldn’t put up road blocks in their phone tree.

Your place to complain about IRS customer service is through congress.

Edit to add…if taxpayer advocate can’t take your case they will let you know. They may even have a better phone number to use or can transfer you and bypass the “tree”. The congressional way may take longer.

My second concern is whether or not a notice from the IRS is all but guaranteed in this situation since my basis/income will not match

You are allowed to adjust the basis on the 8949. There’s a column and a code specifically for this. Column (f) and (g).

See adjustments to basis https://www.irs.gov/instructions/i8949

The chance of an audit or notice over $50 of tax is zero. The IRS has bigger fish to fry.

Contact Taxpayer Advocate or your local congressional rep.

The IRS knows the G is a direct rollover. They won’t pursue this. They have real taxes to go after. A “non taxable rollover” is not worth their time. IMO it’s a waste of the IRS’s time, and money to submit a 1040x for no change.

My opinion only. You can do what you want.

The Underreporter program will not pursue this. From the IRM

https://www.irs.gov/irm/part4/irm_04-019-003r

4.19.3.8.10.3 (7)

Do not pursue 1099R IRs with COD codes of:
Note: The system will delete (mark with "X" ) all elements of the 1099R IR:
6
G
H
N
P
Q
R
T
W

https://faq.ssa.gov/en-us/Topic/article/KA-01921

See this https://www.ssa.gov/pubs/EN-05-10069.pdf

We adjust the amount of your Social Security benefits in 2023 based on what you told us you would earn in 2023. If you think your earnings for 2023 will be different from what you originally told us, let us know right away,

Apparently you must tell them at the time of application?

If the 1099-R had withholding, it gets “attached”. The software knows what the IRS rules are and attaches the required documents.

https://www.irs.gov/pub/irs-prior/f1040s1--2021.pdf

Schedule 1 Part II line 18. Early withdrawal penalty is an adjustment to income. You enter the amount from box 2 on the 1099-INT.

The 1099-INT box 1 for interest and box 2 for the penalty https://www.irs.gov/pub/irs-pdf/f1099int.pdf

The IRS will be happy to have your Form 5329. It’s an electronic version just like your efiled 1040. Remember many of these instructions are for paper filing. The IRS doesn’t want extra papers they don’t need because they get sent to storage buildings for archiving. The less paper the better. But efile is a blip on the radar.

Do you meet the requirement to have a Schedule B with the breakdown? If not, the total interest goes on the interest line of the 1040 and there’s no breakdown listed anyway. As long as the total interest reported matches the 1099s the IRS computer matching will be happy.

Does the 1099-B say “covered”? In other words, was the cost basis reported to the IRS? If yes, don’t worry. The IRS will get both the sale and cost basis and do the math. They know you lost $2 and won’t pursue if you don’t report it.

If the 1099-B is “non covered” then the IRS did not get your basis and can assume zero and try and tax the whole thing. So it’s your call.

Interest paid on a late refund. Yes, the IRS pays interest if the refund is issued later than 45 days after the due date. So if the return is filed by April 15, the IRS has 45 administrative days to process the refund. If the refund is delayed beyond 45 days, the IRS pays interest. Being poor or rich has nothing to do with it. She can go back and check her actual refund and see if it was $24 higher than she was expecting. The interest income is determined by the “year” it is paid. Not by the tax year it belongs to. So if her 2019 refund was delayed and actually paid in 2021, that interest goes on her 2021 return. The IRS was pretty bad last year in processing refunds. Pandemic leftovers, stimulus payments, other odd rules for 2021 causing e...

You save your home purchase paperwork when you buy. I lived in the same house for 38 years. Always had a “house” folder with important papers.

As others said, the mortgage and refinance are irrelevant. The IRS only needs Selling price, Cost Basis, Net proceeds. The Publication can provide the details on adjusted cost basis calculation.

Details are not attached to a tax return. Yes, in an audit you may be asked to provide documentation. Just like any audit.

what is the point of reporting partial expenses to the IRS? Surely that results in bad data.

It’s better than no data? As with any “refundable” credit there’s always the cheaters and fraudsters that will try and claim these refunds any way they can. If the IRS had no 1098-T accountability, it’s too easy to cheat.

From Publication 970 and for the purpose of the education credit, room and board is not a qualified expense. “For purposes of the American opportunity credit, qualified education expenses are tuition and certain related expenses required for enrollment or attendance at an eligible educational institution.”

Bal Due/ over pmt using TP Fig per computer: $ -####.## [The "#" symbols represent digits I haven't reproduced here] [The "-" appears to mean that I'm due a refund.]

The next line reads:
Bal Due/ over pmt using Computer Figures: [same number as above]

Yes it appears you are due a refund. Usually the last codes will be the latest activity. A 971 indicates a notice was mailed. Without seeing the whole transcript, it’s hard to know why the refund is not being released.

Definitely a call is needed. Or involve the taxpayer advocate service or even your state representatives.

Wait for the 1099. January 31 is the legal due date for them to mail it. My bank says the online version won’t be available until after February 1. To be safe, wait until February 15. Especially if there is other interest earned. The amount might not be an exact $700.

Social Security has no idea when you retire, quit, get fired, get laid off, etc. You can quit, retire, whatever at 49 years old if you want and live off savings until age 62.

If you meet the requirements, at age 62 (this is the earliest age) you can apply for benefits. They have your earnings history. So they know if you qualify or not.

My husband lost his job at 59 1/2. He waited until age 66 to apply. He had no problems.

but the child that would need to file Form 709 is not a happy camper.

No. No. The child (receiver of the gift) does nothing but says thank you. They do not file any forms. Even if the gift was more than the annual limit, the receiver gets the GIFT free and clear.

The parent giving the gift will need to file a 709 form IF they give more than the annual limit in one tax year.

The reason is irrelevant. Pick any reason you want. Mortgage etc. You need to get to the page where there are four boxes. The bottom left box should say Account Transcript. Within that box should be several tax years. 2021 2020 2019 for example. Each year should be clickable.

The elderly couple can give $34k to each child ($17k x 2) before even considering spouses. The plan was for the mother to give $17,000 to each child of their three children plus $17,000 to the two spouses. Are you saying that the father can also give $17,000 to the unmarried child? If so, this solves the problem. Is there a link addressing this than I can pass on? Yes. This is true. There are multiple ways to accomplish it. Mom = $34,000 to each married child (split $17,000 to child and $17,000 to spouse) edit: separate checks Mom = $17,000 to unmarried child and Dad = $17,000 to unmarried child for total $34,000 edit: separate checks Or Mom gives $17,000 to married child and Dad gives $17,000 to spouse total…..$34,000 edit: again separate...

The only tip is not call on Mondays. Try Tuesday through Friday. And when you do call, try at 7 AM. Or maybe 6 PM. Very early or very late. The hours for customer service are 7-7. You can also use Form 3911 by mail to open a refund trace request.

Can you create an account? Then view your account transcript. Look for code 846 refund issued with the date.

If you don’t have a code 846, you have no refund. If you have the 846 but never got a check in the mail, you need to request a payment trace. Either call or fill out Form 3911. But it will help to see the exact date of the 846 refund code.

Namashkar wrote: ↑Sat Jan 14, 2023 3:26 pm I made an estimated tax payment on Dec 29, 2022 and it is still not processed. When I sign on to my account and view payment activities, it shows that it is being processed. It has been about 15 days. Is this normal? I tried to see if I can contact IRS, but there is no phone number that I can use to call IRS. Anybody experienced this issue?

Regards,

The first three weeks of January are the dead cycle. So payments will not post. Check again after January 23. Even IRS employees might not be able to see them pending. After the dead cycle, the system posts all the holding transactions.