Reduced Refund

[spencer]

Has anyone encountered the situation where there's a computer glitch "out there" somewhere whereby taxpayers with unemployment income get reduced refunds?
Supposedly it's an error and the rest of the refund will come only of you call the IRS. You have to wait to call until the tp gets a CP 2000. So far, no refund for my client and no letter. Client being exceptionally nice about it.

[taxea]

Has anyone encountered the situation where there's a computer glitch "out there" somewhere whereby taxpayers with unemployment income get reduced refunds?
Supposedly it's an error and the rest of the refund will come only of you call the IRS. You have to wait to call until the tp gets a CP 2000. So far, no refund for my client and no letter. Client being exceptionally nice about it.

Are you saying the client did not get a refund yet or got a reduced refund? irs doesn't send a different amount more or less without a letter of explanation.

There is a number the client can call or they can check on line for information on their refund. Why would IRS send CP2000 unless there was understated income.

[David1980]

Sounds like you might be referring to the TaxWorks software issue this year. For some period of time they weren't transmitting the correct amounts. So for example if the taxpayer had $5,000 of unemployment the printed return would correctly print $3600 and the calculations were all based on $3600 of taxable benefits, but the $5000 got sent in the efile. So the IRS then would adjust the rest of the return as if the taxpayer had $5000 of taxable benefits instead of $3600 of taxable benefits.

If that's your issue, try calling TaxWorks. I think they were trying to work out a better solution than amending to get the refund.

[spencer]

I have just received

a memo with IRS procedures to correct the "software problem with unemployment compensation". Client will get partial refund. Client will receive CP-2000. Provision is made for "oral statement authority". Third Party Designee calls IRS. Need copy of the 1099-G and CP-2000. Answer their questions, I guess, and the balance of the refund will arrive eventually.

[Jiggers]

Reimbursement

a memo with IRS procedures to correct the "software problem with unemployment compensation". Client will get partial refund. Client will receive CP-2000. Provision is made for "oral statement authority". Third Party Designee calls IRS. Need copy of the 1099-G and CP-2000. Answer their questions, I guess, and the balance of the refund will arrive eventually.

Is your software going to reimburse you for this extra time that you are spending to correct their mistake?