CP - Interesting notice

[JG EA]

My client's return was emailed in a couple of months ago. They paid their balance due of about 2K about 3 days before the deadline. However, on the 19th they received a CP notice saying that they owed about 1K. They thought that meant they owed more on top of the payment they sent in. But that would amount to a refund.

Well, I examined and couldn't figure out what they did, but apparently they thought the client didn't take all of their SE HI off Sch SE! Wow, are they helping out people this way - I was amazed. But actually the full amount was taken off and about 1/2 more was taken off by them.

Very confusing. But I think they were trying to find something wrong, came up with a balance due and fulfilled some quota by sending out a balance due CP. Incidently last year they also examined this client's return and found something "wrong" that was also not wrong.

A nice IRS agent spent nearly an hour figuring out what they did, and then putting it back the way it was supposed to be.

So, my clients think well of me - that it came out the same, but it did take an hour of my time, and a few scared moments thinking I had made a mistake - which does occasionally happen .

[S T]

Payment Due Date 4-18-11

IRS is really jumping at sending out these notices - Their system can't even find payments yet - or one dept doesn't know what the other dept is doing

Had sev eral in the past where some one at IRS decided to make corrections that were in error, but most of those were having to do with a Schedule D.

As reported by a few others, the SE and health insurance is obviously going to give us some notices or corrections

A client on installment agreement already had a notice of delinquency sent to them prior to 4/18/11 for the non payment of tax due on their 2010 tax return. Client actually made the payment around 4/12/11 for 2010 -

Installment dept said it is not posted and you are delinquent! It will take 2 weeks before postings will take effect. IRS even went so far as to notify the employer for wage garnishment. Go figure!

So much for the "friendlier, more courteous IRS"

Sandy

[JG EA]

OK, I'm getting a little worried now. I've had two more CP notices that the IRS overlooked what was on the return. But in their notice to the client they say "There has been an error...." One imposed a tax on a 1099C when the 1099C was on line 21 and subtracted (so I wouldn't get a notice) AND on Form 982.
The other one was nonpassive losses from a K-1 that the IRS ignored when doing the client's EIC. But as in the first one I got last week I couldn't duplicate how they came up with the amount they did. They took some of the loss but not all?
Anyway these three have taken approximately 5 hours of telephone and letter writting time and the last two no one offered to change it when I pointed the whole thing out. They just said I must send a letter.

[joanmcq]

I've gotten my first letter saying they can't process a same-sex community property return because only one persons income should be on there. Must write a letter. Her wife's return was processed and they gave her $248 more refund. I still need to see the letter on that one to figure out what they did. I can't come up with $248 from anywhere.

I did hear that a bunch of letters went out erroneously wanting payments that wouldn't have had time to process. Check the IRS website.