1040x

[RLymanC]

Client prepared his own 2002 taxes and entered $17,376 of Social Security Income on line 7 of 1040 form plus $6,470 of 1099R income in the proper place. Filed a 1040X this year changing line 7 to line 14a SS Income.

IRS disallowed his 1040X filed based on the 3 year rule. Pub 556 sort of confims this. Is there any way out of his $5,000 tax liability plus interest?

[JG EA]

Read the letter and see if it is just saying that he cannot get a refund.

What page are you reading in pub? Page 13 just says you can't get a credit or a refund, But the balance due should go away or be reduced to the proper amount and interest charged only on what is owed on the corrected return.

I would call the TPH and see what the status of the return is now since it seems it was processed.

[erchess]

Just to be clear

He filed the erroneous return but did not pay and the IRS never breathed a word about the missing Social Security nor until the last few months attempted to collect?

[RLymanC]

2002 1040 mistake

Taxpayer included his SS income on 1040 line 7, the IRS has no documented wages that belong on that line except taxpayers entry, only other income was the 1099R.

So what did they do, they left the SS income on line 7 and also included the SS amount in the proper place on the transcript thereby generating a taxable SS amount.

As far as I know he has not received any notification of the balance due untill last July.

[Kram BergGold]

Question

Who filed the amended return?
If the client, have you seen it?

[Bucky]

Get POA and call the IRS after you review 1040x client filed. Seems like any easy fix once you contact IRS. He won't get a refund or credit but should not owe anything if his facts are correct.