For the year 2003, my dad worked two full-time jobs, with two different employeers. For one of the jobs he earned
over $88,000, and the other job he earned $80,000. On the first job he was over the yearly SS FICA limit (since he
earned over $88,000), so for the second job's earning he took a credit for the excess withheld in the "Payments" section
of Form 1040, line number 64 for the amount of about $4960.
The IRS by mistake posted this amount of $4960 into their computer system on line 63, which happens to be the Earned
Income Credit. Now, the IRS sent a notice for the payment of $4960, plus penalties and interest, which raises the
amount to over $5160.
My dad got really nervous after receiving this notice, so he called the IRS at 1-800-829-0922. The customer service representative (CSR) at first said that my dad mistakenly entered in $4960 on line 63, since this information was in their computer. My dad then explained that he has a photocopy of the original return, and it clearly shows that he wrote the amont on line 64. Then the CSR said that the IRS made a mistake in posting the data from line 64 to line 63 on form 1040. My dad pleaded with the CSR to correct the situation, but the CSR said that even though he wants to correct the error, he is unable to since the CSR is only at a calling center. However, the CSR said he made a
notation in the computer, and told my dad to send a copy of the 1040 as a proof to the IRS center, and to explain the IRS
what error they made.
The next day, my dad sent the IRS center at Andover, MA 05501-0010 a copy he had of the 1040, along with the voucher, check-marking the box next to "Correspondence Enclosed", and explaining the correspondence with the CSR. As per the CSR's instruction, he also wrote wrote "see ICP" on the Post Script of the correspondence letter, as well as writing "ATTN: account adjustment," on the lower left corner of the IRS envelope. My dad thought everything was settled since this is the IRS' own mistake. More than 3 weeks after mailing his copy of 1040 to the IRS, he was shocked to receive another notice from the IRS, saying "We previously wrote to you about your unpaid account,
but you haven't contacted us about it." Now, they have increased the interest and penalties, and hence the total amount, and said to send the money along with the payment voucher. They said "if you can't pay now, call us at the number
shown below. You may be qualified for an installment agreement or payroll deduction agreement" otherwise they will make arrangements to "proceed with steps required to collect the amount you owe."
Question: Even if hypothetically my dad made an error and instead of entering $4960 on line 63, instead of line 64, so
what? What is the significance of sending another copy of the 1040, can't the IRS fix the error instead of asking for
proof of what they already have? They have both W-2s from both employeers, can't they see that one job's W-2 is
maximum SS FICA, and the other W-2 is $4960, which is the excess amount? Couldn't they fix this right away?
How can my dad correspond with the IRS the next time, if the IRS says they never received it? How can he be assured
for further correspondences. What should my dad do? He was looking forward to his retirement, and now this is another
worry. Please guide us on what other approaches can be taken to fix this problem once and for all. Thanks and we really
appreciate.
Question: Even if hypothetically my dad made an error and instead of entering $4960 on line 63, instead of line 64, so what? What is the significance of sending another copy of the 1040, can't the IRS fix the error instead of asking for proof of what they already have? They have both W-2s from both employeers, can't they see that one job's W-2 is maximum SS FICA, and the other W-2 is $4960, which is the excess amount? Couldn't they fix this right away?
Sure the government can, but they won't until you show them that you got their threatening notice. They can fix it if you instruct them to in writing. It's bad they do this to you and to million others. Best.... don't call that phone number.... it's useless almost all the time. Write, attached copies and do the same to them....they write; you write!
How can my dad correspond with the IRS the next time, if the IRS says they never received it? How can he be assured for further correspondences. What should my dad do? He was looking forward to his retirement, and now this is another worry. Please guide us on what other approaches can be taken to fix this problem once and for all.
How, you asked? Simple, they don't call you and you don't call them. Write, write, write... letters back to them and be ready to show your copies.
After three attempts and over a month, GO GET HELP With Unresolved Tax Issues Through the Office of the Taxpayer Advocate. Keep copies of each communication and letters, along with attachments.Write To The Advocate Office < -- Just Click Here
Information You Should Be Prepared To Provide.
1. Your name, address, and social security number (or employer identification number)
2. Your telephone number and hours you can be reached
3. The type of tax return and year(s) involved
4. A detailed description of your problem
5. Your previous attempts to solve the problem and the office you contacted, and
6. Description of the hardship you are facing (if applicable)
08-22-2004 10:51 PM
