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    #1

    Cp 25

    Client received notice that all his withholding claimed on his self prepared 2008 1040A is being disallowed. I am in the process of getting with him to gather evidence of his withholding. He says he had withholding from only one job but he claimed a lot more than his final pay stub for that job shows so I am having him get the W-2. Then as the notice instructs we will call the number given on the notice. (I was already helping him get caught up on the filings for his nonprofits and corporations and he had already promised to bring me all his future tax work when he got this notice and brought it to me.)

    Is there any conceivable way that the withholding on his paper W-2 from a large public school system is due to some glitch different from what is in the IRS computer or that simply his W2 is not in the IRS computer at all?

    Are there any pitfalls anyone would like to warn me about?
    Last edited by erchess; 06-29-2009, 07:16 PM.
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    #2
    Originally posted by erchess View Post
    Client received notice that all his withholding claimed on his self prepared 2008 1040A is being disallowed. .... He says he had withholding from only one job but he claimed a lot more than his final pay stub for that job shows ....

    Are there any pitfalls anyone would like to warn me about?
    "He says he had withholding from only one job but he claimed a lot more than his final pay stub for that job shows.........."

    That is the pitfall to be worried about. He filed using made up numbers? And didn't use a W-2?
    Jiggers, EA

    Comment

      #3
      Originally posted by erchess View Post
      Are there any pitfalls anyone would like to warn me about?

      I'd say the biggest pitfall would be failure to collect a big retainer on this one. He's going to require a lot of your time and will likely not be happy with the end result.
      "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

      Comment

        #4
        More Info

        He filed using a W-2 that he subsequently lost. He might have made an honest mistake but he didn't claim more than he thought he had. He just would not have done that in my opinion. He does careless and reckless things with his taxes but when he is confronted by me or the government he pays up and is committed to letting me see that in the future things are done properly.

        All my big mess clients pay up front and never owe me money for work I have already done.

        I realize that when I get the W-2 the situation may clarify but what is bugging me about this case is that they totally disallowed his withholding when I already have pretty strong evidence that there was withholding. I persist in thinking that when a taxing agency claims that a taxpayer owes more tax than he or she actually owes, the consequences should be devastating for the taxing agency and life changing for the taxpayer.
        Last edited by erchess; 06-30-2009, 02:18 AM.

        Comment

          #5
          Cp 25

          Did you try to obtain copy of W-2 form IRS either thru e-services telephone?

          Comment

            #6
            Got the W2

            in a fax this morning from the employer. I don't go to a lot of trouble getting these forms because I think it is my client's job to get them for me.

            I never got an answer to my question of whether it is CERTAIN that the W2 as provided by a school system is EXACTLY the same in the IRS computer.

            The W2 agrees with the final check stub. He seems to have claimed way too much Federal Withholding and not claimed his State Withholding.

            Am going to meet with him this afternoon. We shall see how it goes.

            Comment

              #7
              The only things certain in life are Death & Taxes.

              Comment

                #8
                Explanation

                Ok I met with him. The reason he claimed so much withholding was that he could not get the software he was using to give him the EIC or the Child Tax Credit.. (He is entitled to both of these but he greatly over estimated the amount.) So we have everything straightened out now.

                Comment

                  #9
                  ????

                  It's bad enough going behind DIY taxpayers as it is. Let alone one who tries to fool the software into compensating for a perceived EIC miscalculation by overstating withholding.

                  Remember the old 1980s show "That's Incredible!!"? This one belongs on that show except the viewers would never grasp it.

                  This guy is certifiable. Get up front money before ever fooling with him again...

                  Comment

                    #10
                    So what does this client do when his checkbook won't balance - just add more deposits in the check register?
                    "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

                    Comment

                      #11
                      [QUOTE=erchess;83955]He filed using a W-2 that he subsequently lost. He might have made an honest mistake but he didn't claim more than he thought he had. He just would not have done that in my opinion.

                      Ok I met with him. The reason he claimed so much withholding was that he could not get the software he was using to give him the EIC or the Child Tax Credit..
                      QUOTE]

                      Obviously he did!

                      He knew he did something wrong.

                      Yet he wanted you to spend a lot of useless time trying to get this straightened out.
                      Jiggers, EA

                      Comment

                        #12
                        I had a friend of mine in college whom I was helping prepare her return. She went into TurboTax after I was done but before I filed it and "just kept changing things until that number on the left stopped going up." The number on the left was, of course, her total refund amount. Caught it all before we filed. DIY has its moments.
                        "Congress has spoken to this issue through its audible silence."
                        Anyone ever notice they beat the daylights out of the definition of a child, but they don't spend much time at all defining "parent"?

                        Comment

                          #13
                          In His Defense three points

                          1. He has paid me up front without complaint.

                          2. When I have told him to pay the government he has paid the government without complaint.

                          3. He has said that going forward he will give me all his tax work.

                          Conclusion - I think he plans to start doing right from now on.

                          One other observation - I take responsibility for some of the miscommunication in the case. I interviewed him on three different occasions and we must have exchanged 50 emails but until today I did not ask him to give me the entire picture of his financial life because I didn't think I needed that to do the returns for his two absolutely idle and one almost idle S Corps. I didn't keep notes because I know that any notes I keep can be used against my client. If I had this case to do over again I would start by getting a complete picture of his financial life due to the fact that I knew I was eventually going to be doing his individual returns and I would have kept good notes. Live and learn.
                          Last edited by erchess; 06-30-2009, 04:51 PM.

                          Comment

                            #14
                            I've seen people screw up withholding every which way, but this one is a new one!

                            Comment

                              #15
                              Keep in mind that the notes you don't keep can be used against you.

                              Comment

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