New Experience with IRS

[dwert]

Here's the story - 88 year old taxpayer self prepares his tax return for 2005. Receives a letter from IRS dated 07/10/2006 stating he made an error (of course they don't say what) and he has a refund of $800.00 coming to him. Taxpayer dies on 07/23/2006. I prepare a final 1040 for 2006 and notice that there are even MORE mistakes on the 2005 return and, with the IRS transcripts from 2005, prepare a 1040-X on 09/05/2006 asking for $12,000.00 more in refunds (the man just made up income amounts). On 01/23/2007 IRS requests additional info to complete the 1040-X. On 04/09/2007 IRS sends a letter of THANK YOU and that they are sending the return to Memphis Service Center to better serve me. About April of 2008 (a year later) I check with the PR of the estate to see if he ever received the check - answer NO. Practitioner's Hotline says the file has been closed with no change. No notice of any kind was received by PR or myself during this time. On 04/17/2008 I send a rather strongly worded letter asking why and how an amended return can just be closed with no explanation. No response. On 07/18/2008 I contacted Taxpayer Advocate Services and they took the info. On 09/15/2008 PR received a check for $13,336.53. Just wondering if new IRS policy for treatment of deceased taxpayers?

[Zee]

Here's the story - 88 year old taxpayer self prepares his tax return for 2005. Receives a letter from IRS dated 07/10/2006 stating he made an error (of course they don't say what) and he has a refund of $800.00 coming to him. Taxpayer dies on 07/23/2006. I prepare a final 1040 for 2006 and notice that there are even MORE mistakes on the 2005 return and, with the IRS transcripts from 2005, prepare a 1040-X on 09/05/2006 asking for $12,000.00 more in refunds (the man just made up income amounts). On 01/23/2007 IRS requests additional info to complete the 1040-X. On 04/09/2007 IRS sends a letter of THANK YOU and that they are sending the return to Memphis Service Center to better serve me. About April of 2008 (a year later) I check with the PR of the estate to see if he ever received the check - answer NO. Practitioner's Hotline says the file has been closed with no change. No notice of any kind was received by PR or myself during this time. On 04/17/2008 I send a rather strongly worded letter asking why and how an amended return can just be closed with no explanation. No response. On 07/18/2008 I contacted Taxpayer Advocate Services and they took the info. On 09/15/2008 PR received a check for $13,336.53. Just wondering if new IRS policy for treatment of deceased taxpayers?

Wow! Good Job!

Have you determined how/why the deceased taxpayer simply made up income for his tax return?

[erchess]

People Do Strange Things

They even sit up at night while sensible people are asleep and read tax bulletin boards. You often cannot figure out why and it may be better that way.

[taxxcpa]

Deceased taxpayer

A client sent me a letter from the IRS about a deceased taxpayer who supposedly failed to pay tax on an IRA withdrawal.
I had prepared a joint return for her and her husband and reported the withdrawal plus the penalty for early withdrawal. Her date of death was shown on the return
Apparently the IRS did a search on her SSN as the primary SSN and did not consider the possibility that it was on a joint return.