You only get this kind of thing with the DIY crowd. TP had balance due, and paid 'with the vouchers printed out by TurboTax'. In other words, he used the 2008 1040-ES vouchers to pay his tax due. So now he has a notice requesting the payment of the 2007 taxes due. Has anyone had any luck in getting estimates applied to a balance for the previous year? He didn't write the tax year on the checks since he had those handy vouchers, so I've got no proof of intent.
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You can forget it. They will not apply 2008 estimated taxes retroactively to a prior (or later) year. He will have to cough it up. He can apply for installment payments, and forego any further 2008 estimates but he probably does not usually make them anyway, I am guessing. Just used the wrong form. -
At least client is ahead for 2008
I agree with Burke - that's why the payment forms have those large numbers (tax year) printed on them. And then the instructions also say to write "2007 Form 1040" or "2008 Form 1040-ES" on the check, either of which might have helped at the time of IRS processing, although I doubt it would have when using a printed payment voucher.
De minimis the client is looking at some interest from April 15th, and of course there might be some 2210 stuff rattling around also to make matters worse.
Sometimes a little knowledge, especially for the DIY crowd, is a very dangerous thing!
FEComment
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Well, on these, thank god for the stimulus, because snatching his $1200 cut down what he owes. And if he doesn't adjust his withholding, he'll need the estimates. Thanks folks.Comment
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Silver lining
Originally posted by joanmcq View Post
Very astute tax planning for 2008!!
(Falls into that general category: "Even a blind chicken can pick up a piece of corn every now and then" )
FEComment
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Here in NC the principle is the same, but the phrase is different:
"Even a blind hog will turn up an acorn if you let him root around long enough.""The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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I happened to me!
The IRS doesn't only mess up the DIY crowd, sometimes it even gets us!You only get this kind of thing with the DIY crowd.
I owed (big time) for 2007 and paid via EFTPS. I also (in a separate transaction) paid my April 2008 Estimated Taxes. In late May I received a CP-14 dunning me for my past due taxes, penalty and interest. Sure enough, they had credited both payments to my 2008 estimated tax account. A simply phone call to the number on the CP-14 cleared it up.Comment
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Don't forget
This whole scenario also works in reverse, i.e, if there is a refund on the 2007 taxes, and you indicate to apply the refund to the 2008 tax return, there is no going back. It is already applied! IRS will not move it back to the prior year. Tried several times when we had to file 1040X returns, nope, no way!
Moral of the story (refunds or payments): Once applied they stay there, there is no moving them from one tax year to another tax year!
so Joan, if your DIY t/p made the error of filing the 1040ES for 2008, I would be most certain, that is exactly where their payment will be allocated and remain.
Guess they can look forward to a refund for 2008 or maybe a smaller amount due or even maybe a breakeven situation, IF they don't change their withholdings.
SandyComment
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Don, at first I was hoping it was an IRS error, but if you send the payments with the wrong forms, its square on your lap. I had to grill him on just what kind of vouchers he had...since he paper filed, he didn't even get a 1040-V printed up with the return, just the ES for 2008. In your case, it was an IRS error, so you could fix it.Comment
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