In 2004, my husband and I didn't file one W2, and his unemployment that he was on for a few months. Dont ask why, I dont know. Anyway, we got a letter from the IRS stating we owed 1800.00. I went to Jackson Hewitt today (that's who did our taxes back in 2004) and had them look over everything. They put everything in, and it came out that we were owed an additional 850.00.
Now my question is, are we actually going to get this money back, or does this get deducted from the supposed 1800.00 we owe the IRS?
I am going to the local federal office tomorrow to find out for sure, but I would like to know now, if anyone has any ideas.
2007-01-02 11:11:38 · 5 answers · asked by Coltsgal 5 in Business & Finance ➔ Taxes ➔ United States
no other additional details that i didn't mention, so i'm hoping for the extra money!
hehe the IRS shouldnt have audited me! now they have to pay me more money...hopefully
2007-01-02 11:20:18 · update #1
All the IRS has to go off of is what was reported to them; W-2s and 1099s. If your tax guy took that info, factored in your deductions, then the refund amount is the correct answer.
Strongly recommend someone answer the IRS' letter. Since I do not know what they wrote I can not suggest the responses content other than saying you will or have filed and that filing shows a net refund. Do answer the letter!
2007-01-02 11:42:50 · answer #1 · answered by zudmelrose 4 · 0⤊ 0⤋
I also got a notice for the 2004 tax year this past summer since I'd accidentally omitted something from my return. It showed we owed several hundred dollars. I refigured everything including the omitted amount, and came up with that we were owed an additional refund.
And yes, since I'm a tax preparer, I was really embarrassed to have messed up my own by leaving something out.
I called the IRS twice, talked to two different people, and neither could see how the figures on the notice saying how much we supposedly owed were calculated. I think it was something to do with the capital gains tax rate limitation, but even if they did that wrong on the notice, I couldn't match their figures. Neither could the two IRS people who tried to refigure it - they agreed with me.
Long story short - the notice has a page to send back that either says something like (1) I agree, here's the money (2) I agree, but don't have the money, please set up a payment plan, or (3) I don't agree, and here's why. I sent back the notice saying I agree that I omitted the item, but don't agree with the tax calculation. I included a copy of my redone forms showing the proper calculations. Several weeks later, I got a check for the additional refund.
So at least in my case, something was wrong with the figuring of tax due on the notice I got from the IRS. Since it's computer generated, there had to be a bug somewhere in the program. You might have fallen into the same bug. The IRS, like all the rest of us, isn't always right.
From what you describe, you might not owe the $1800 at all, but have a refund coming instead.
Good luck.
2007-01-02 14:18:59 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
You should have a CPA respond to the letter from IRS. In the letter, the CPA should explain the correct calculation and how the IRS calculation is incorrect. It will take some time for IRS to get this straightened out though. The correspondence with IRS usually takes some time. You should sign a Power of Attorney (POA) that gives the IRS permission to discuss your 2004 tax return with the CPA. Don't worry about the POA as the CPA will only be able to discuss the tax year and tax form that you give permission to on the form.
2007-01-02 14:31:23 · answer #3 · answered by raindrop 4 · 0⤊ 0⤋
No It will not... If your tax man did it correctly... by filing a 1040X for that yr to include the additional income and with/holdings you should get the $850.00 refund. Be happy you answered IRS's additional tax adjustment. Unless, however, there are other issues you did not mention which prompted the audit (Assuming it was an audit) Good luck.....
2007-01-02 11:18:42 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Yes if you forgot to file one of your w2's you have 5 years to correct the problem. I have that happen with couples every year. I have come to figure out they just could not wait on a w2 from one employer or did not want to report the unemployment. So spend your additional 850.00 wisely.
Drac
2007-01-02 15:36:28 · answer #5 · answered by Drac1 2 · 0⤊ 0⤋