Schedule M Update

[Jesse]

This from NATP:

The IRS was made aware of several issues regarding errors in the computation of the Economic Recovery Payment on Schedule M. The IRS has told NATP that they were experiencing programming problems which caused incorrect computations and errors in some taxpayers’ refunds. The IRS has assured NATP that the errors have been corrected and the problems solved. There is no word yet on how or when taxpayers who received too much of a refund will be required to return the money to the IRS.

[David1980]

So are they talking about all the adjustment letters and refunds that went out to taxpayers with ITINS giving them the $400 even though they don't qualify?

What a mess, I bet they never get back most of that money.

[Jesse]

I had two clients that had adjustments, one for an extra $250 and the other for $100, I went over and over the returns and there was no error on the schedule M as the letter from IRS stated. At least this makes me feel better to know the error was most likely on their part not mine.

[rjholmes]

I have one couple who received more. Their credit was reduced because of low income, but the refund was almost double what we show on Sch M. I too have gone over it and cannot find anything wrong. I am sure there are many others out there with larger refunds, and I wonder if they will have to be paid back. Time will tell.

[Dusty2004]

I also had one

I was going to review and discuss with Practictioner priority hotline. What is everyone else going to do?

Thanks,

Dusty

[Burke]

Same thing happened last year with some Recovery Rebates. Had one who got a letter saying they "corrected" the return and sent her $300. There was nothing wrong with the return and she was not due the money. She had already received it in 2008.