Results 1 to 13 of 13

Thread: IRS Notice

  1. #1
    Veteran Member
    Joined
    Apr 2011
    Location
    Philly/NYC
    Posts
    581
    Thanks
    662
    Thanked 227 Times in 129 Posts

    Default IRS Notice

    Someone please be kind to explain to me? Just received this in the mail this morning. My parents already took my SS# and birth certificate to their accountant and verified its me and got their refund checks in June. Why are they still sending me this letter? My club doesn't send 1099s out so I'm sure I'm not oweing taxes.

    ***UPDATE***
    My parents filed their taxes of March 2012 and was rejected because my SS# was ALREADY on file. I never filed my taxes which means I never 'claimed' myself. My dad doesn't work and only my mom does. They are still married and filed a joint return. I have no car title or anything in my name. Their accountant photocopied my birth certificate and SS# and sent it to the IRS and was given a refund check. So...why are the IRS sending a letter out after they send out their refund checks?

    photo-3.JPG
    Last edited by sweet_baby; 11-04-2013 at 09:34 AM.

  2. #2
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: IRS Notice

    not knowing any 'particulars' it's difficult to speculate. However, the IRS notice indicates that the IRS has reason to suspect that you do not meet the 'qualifications' for being a dependent of your parents as they claimed on their tax return.

    Some possible reasons are ...

    - you yourself filed a tax return which attempted to also claim yourself ( in order to be able to pay a lower effective tax rate )

    - some paper trail item has appeared on the expenditure side ( college bursar's office records, DMV car title records ? ) which tends to show that you spent too much money for it to have been possible for your parents to have provided 51% of your financial support

    - some paper trail item has appeared on the income side ( bank interest records, an IRS audit of your club ? ) which tends to show that you earned too much money for it to have been possible for your parents to have provided 51% of your financial support

    - the IRS was 'tipped off' ... are any fellow dancers at your club being audited ??? who might have decided to rat you out in order to 'save their own ass' in regard to back taxes ?


    Again, in purely speculative terms, it would appear that this IRS notice is preliminary ... which probably means that it was prompted by either some automatically reported financial item to the IRS ( like college or DMV or bank ), or prompted by some sort of other IRS proceeding ( like an IRS audit of your club ).

    However, if this isn't resolved quickly, the next logical step for the IRS would be to start requesting additional info through the financial system i.e. credit report based payments made to credit card companies, utility companies, loan companies, landlords - as well as bank deposits, retirement contributions, investments etc. - for both you and your parents, in an attempt to investigate the 51% financial support issue in detail. Obviously this additional financial info may also lead the IRS in other directions i.e. how was it possible for a person who only reported X amount of earnings on her tax return able to spend 2X or 5X or 10X !!!
    Last edited by Melonie; 11-01-2013 at 10:51 PM.

  3. #3
    Veteran Member RaeRae's Avatar
    Joined
    May 2013
    Location
    Midwest
    Posts
    702
    Thanks
    3,292
    Thanked 1,374 Times in 466 Posts

    Default Re: IRS Notice

    Really? That notice to me seems to state that sweet_baby and someone else both claimed another person as a dependent rather than questioning her status on her parents return as a dependent. I could be mistaken though. Just saying as I've heard of similar notices sent to divorced parents, both of whom claimed the child when only one was eligible. It's possible the letter is the same in both circumstances though.

    No matter what, instead of just wondering why they are sending the letter, she call the IRS asking why she is receiving it so she can figure out exactly where the problem is as they aren't gonna stop sending the letters.

  4. #4
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: IRS Notice

    ^^^ since sweet_baby specifically referenced her own SS#, plus the fact that her parents took her own SS# to their accountant, one has to assume that it is sweet_baby's personal exemption / dependent status that the IRS is questioning. Additionally, dsince the notice was addressed to sweet_baby by the IRS, one has to assume that the conflict isn't between two other parties, but between one other party and sweet_baby. Again it's difficult to speculate without more info.

    In regard to directly contacting the IRS, obviously if sweet_baby or her parents don't want to file amended tax returns ( and pay back the IRS for the additional amount of taxes due without her personal exemption / dependent status ), then additional contact with the IRS will be unavoidable. However, taking the path of contacting the IRS ( versus filing amended tax returns and paying additional taxes ) will also potentially open up 'Pandora's Box' in regard to further IRS investigation. Not knowing any 'particulars', it's difficult to speculate which option may wind up being more 'expensive' in the long run.

  5. #5
    Veteran Member RaeRae's Avatar
    Joined
    May 2013
    Location
    Midwest
    Posts
    702
    Thanks
    3,292
    Thanked 1,374 Times in 466 Posts

    Default Re: IRS Notice

    Ahh fair enough. More information would definitely be helpful. Well, no matter what, since her parent's accountant handled her parents' taxes and this would concern them as well, one would think that she could take the letter to them and ask for help/information.

  6. #6
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Arrow Re: IRS Notice

    ^^^ yeah, obviously true !!!

    The key question at this stage appears to be who actually provided 51% of sweet_baby's financial support. At this preliminary point, it would appear that the IRS is providing sweet_baby or her parents the option of making this 'decision' for themselves ... via filing an amended tax return which drops sweet_baby's personal exemption / dependent claim ( and paying the IRS the amount of tax money 'saved' via that dependent claim ).

    If the matter is allowed to progress to a higher level, odds are that the IRS will investigate the matter themselves i.e. pulling all sorts of financial system records which compare the parents' reported income and actual expenditures, and sweet_baby's reported income and actual expenditures, in an attempt to nail down the 51% question. However, as I said earlier, if a subsequent IRS expenditure investigation appears to indicate that more money was actually spent than was reported as having been earned in the first place, the IRS could indeed start moving in a new direction. And THAT is the risk involved if sweet_baby and/or her parents don't opt to simply file an amended tax return ( and pay back the IRS the cash value of the personal exemption / dependent claim ).

    On the other hand, it's not impossible that this IRS notice is actually totally unrelated to sweet_baby or her parents ... for example, that sweet_baby was unlucky enough to have an illegal immigrant 'invent' a social security number out of thin air in an attempt to ( bogusly ) claim a child tax credit on their own TIN based tax return that just happened to match sweet_baby's social security number. Unfortunately, if this is in fact the case, then an IRS investigation cannot be avoided. However, the odds of this scenario ( and other bizarre scenarios ) actually being the case are microscopic in comparison to a paper trail based 'yellow flag'.

    Allow me to throw out an analogy. In many ways, the situation of filing an amended tax return ( and paying back the cash value of the personal exemption/ dependent ) is like accepting a plea bargain and paying a fine. Yes it costs money, but by going this route the matter is 'dropped'. On the flip side, contacting the IRS and attempting to dispute the issue is like pleading innocent and going to court. Yes there is a chance that you could have the matter 'dropped' without it costing you anything, but there is also the possibility that ... after reviewing the facts in detail ... you'll wind up with an even harsher judgement that costs even more money. Again not knowing any particulars of what might be turned up if the IRS reviews the facts in detail ( other than Sweet_baby's comment that her club doesn't issue 1099's thus she thinks that she doesn't owe taxes ), it's hard to assess the relative risk.
    Last edited by Melonie; 11-01-2013 at 11:48 PM.

  7. #7
    Banned
    Joined
    Aug 2011
    Location
    Aboard The Spaceship
    Posts
    4,787
    Thanks
    3,183
    Thanked 10,142 Times in 3,290 Posts
    My Mood
    Breezy

    Default Re: IRS Notice

    Quote Originally Posted by sweet_baby View Post
    Someone please be kind to explain to me? Just received this in the mail this morning. My parents already took my SS# and birth certificate to their accountant and verified its me and got their refund checks in June. Why are they still sending me this letter? My club doesn't send 1099s out so I'm sure I'm not oweing taxes.

    photo-3.JPG
    That's the letter I got when my mom claimed me on her taxes and she wasn't allowed to. I (obviously) also claimed myself. One of you has to re-do their taxes. Someone else obviously claimed you and you claimed yourself, or you claimed someone else (like a child) who was also claimed by someone else. A SSN can only be claimed by one person.

    Call the IRS and talk to them.

  8. #8
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re: IRS Notice

    The bad news is a lot of solid citizens have to wait , refile everything and then wait some more until it all gets straightened out.
    ... with part of the IRS 'straightening out' process being a de-facto IRS audit of the person whose SS# was 'borrowed' !!!

  9. #9
    Banned Eric Stoner's Avatar
    Joined
    Oct 2006
    Location
    NYC
    Posts
    5,150
    Thanks
    1,261
    Thanked 1,430 Times in 888 Posts

    Default Re: IRS Notice

    Quote Originally Posted by Melonie View Post
    ... with part of the IRS 'straightening out' process being a de-facto IRS audit of the person whose SS# was 'borrowed' !!!
    True. That was the really fun part but I'm trying not to scare anyone with a delicate constitution.

  10. #10
    Veteran Member
    Joined
    Apr 2011
    Location
    Philly/NYC
    Posts
    581
    Thanks
    662
    Thanked 227 Times in 129 Posts

    Default Re: IRS Notice

    ..............

  11. #11
    Featured Member
    Joined
    Feb 2005
    Location
    Puritanical New England
    Posts
    1,003
    Thanks
    1,798
    Thanked 929 Times in 495 Posts

    Default Re: IRS Notice

    Just be careful when calling them not to divulge any incriminating info. The IRS agents are trained to ask questions. This is one time when it is worth it to have your accountant make that call for you.

    Quote Originally Posted by GlamourRouge View Post
    That's the letter I got when my mom claimed me on her taxes and she wasn't allowed to. I (obviously) also claimed myself. One of you has to re-do their taxes. Someone else obviously claimed you and you claimed yourself, or you claimed someone else (like a child) who was also claimed by someone else. A SSN can only be claimed by one person.

    Call the IRS and talk to them.
    Originally Posted by
    I don't know what it is about me that says "wife me up." Everyone wants to choke me or date me. Or both. This job is weird.


    Originally Posted by Nocturnelle
    ... Kittens are assholes but they're just so darn cute.

  12. #12
    Banned
    Joined
    Aug 2011
    Location
    Aboard The Spaceship
    Posts
    4,787
    Thanks
    3,183
    Thanked 10,142 Times in 3,290 Posts
    My Mood
    Breezy

    Default Re: IRS Notice

    Quote Originally Posted by CFMNH44 View Post
    Just be careful when calling them not to divulge any incriminating info. The IRS agents are trained to ask questions. This is one time when it is worth it to have your accountant make that call for you.
    This was more than 5 years ago. And I didn't do anything wrong. Only my mom did. And I told her both before AND after that she couldn't claim me. IRS told me it was her issue not mine. She had to refile and owed much more.

  13. #13
    Moderator
    Joined
    Jun 2013
    Posts
    901
    Thanks
    635
    Thanked 1,519 Times in 585 Posts

    Default Re: IRS Notice

    per your update they filed in march of 2012 for 2011 taxes, the notice is for 2012 taxes

    There is probably something they are not doing correctly that the computer spits out.

    I got notices about an incorrect SSN for an employee for several years. Finally figured out that I had his name spelled wrong in one part of my computer..........details details

Similar Threads

  1. Anyone else notice....
    By Alysa in forum The Lounge
    Replies: 2
    Last Post: 01-11-2011, 10:36 PM
  2. Notice to all employees.
    By aussiepunkshocker in forum The Lounge
    Replies: 1
    Last Post: 10-08-2006, 06:35 AM
  3. Please take notice
    By Tart in forum The Lounge
    Replies: 18
    Last Post: 04-23-2006, 07:59 AM
  4. Anyone else notice this?
    By TJAndDani in forum The Lounge
    Replies: 12
    Last Post: 09-03-2005, 07:47 PM

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •