Error Letter From Irs Re Sch M

[dyne]

A client brought a letter from IRS which stated that the schedule M prepared was wrong.
He DID receive the $250 economic recovery payment therefore schedule M did NOT
allow him the Certain Government Retiree credit of $250. IRS allowed him the $250
Certain Government Retiree Credit in ADDITION to him having received the
$250 economic recovery payment. TTB 1-16 right column says:
"The (government retiree) credit is NOT allowed if the eligible taxpayer received
a $250 economic recovery payment during 2009".
After reading the letter from IRS more closely I noticed that it says:
"The amount used on line 10, schedule M when computing the total amount for Making
Work Pay and Government Retiree Credit is NOT the amount received as an economic payment
in 2009 from the Social Security Administration, Rail Road Retirement Board, or Veterans
Administration." But the taxpayer advised that he DID receive the $250 economic benefit
payment entered on line 10 AND I called the IRS telephone number to verify that he did
receive this $250 and was advised that he DID receive this payment.

[ChEAr$]

yes, other EA's across the country have reported letters just like this one. One EA in CA
received an extra $ 200 Obama money even though he and wife had received their $ 500
already.

All a client can do is hold onto the check, and have you write a letter after April 15th returning
it. Hmmm, maybe we need a form letter for this situation. Whoever writes one first,
please post it.