Superseding MFS Returns With UCE

Forum|Forum|4 years ago
November 28, 2021
2 replies
7 views

Clients who filed MFJ in February, qualified for unemployment exclusion on separate returns with $20,000 UC considered community income. Superseding MFS returns were filed before April 15. Still no refunds from IRS, which admits that in many cases it is taking six months to process amended returns.

Has anyone else seen results from such returns? Is anyone else still waiting?

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PATAX

Level 12

Still have at least one client waiting for the IRS to make the uce adjustment like they said they would... MFJ return filed in March and they still have not received the additional refund from the uce adjustment... There should be no issue with this as the return is straightforward... So if they can't take care of this on time then I'm not surprised about what is happening with your returns....

BobKammanAuthor

Level 15

Yes, they did say that MFJ returns would be the last ones for which they would be making the "automatic" UCE adjustments. And as you say, those without a change in filing status and not involving community income would be much easier than mine. When you wrote "I'm not surprised about....", I thought the next line would be "...how many of us predict the next tax season will be even worse than the last one."

BobKammanAuthor

Level 15

So my clients just emailed me a copy of the notice IRS sent the wife.

The good news is that it shows the same AGI, taxable income and withholding credits as those reported on her superseding return.

The bad news is that it doesn't show her half of the single $8,500 ES payment that had been made jointly in September. As a result, she is being billed for !,500 plus interest and FTP penalty, rather than receiving a refund of $2,750 plus interest. (Each return claimed half the ES payment.)

The good news is that for the husband, "Where's My Refund" is accessible using the refund amount shown on his superseding return.

The bad news is that his return is still being processed.

I told them to wait a few weeks and hope the husband's refund shows up, including all of the ES payment and not just half of it.

They're smart enough to set up an online account, so we might try further research that way.

PATAX

Level 12

Yep, I have read, and I have heard at seminars that sometimes there are issues with them splitting up those estimated tax payments between husband and wife.....

BobKammanAuthor

Level 15

I would have claimed the entire payment on the husband's return, but that would have resulted in the wife owing tax. (Which happened anyway.) On a joint return, even without the UCE, they would have received a refund. I didn't want to tell them to pay something in April, then wait until December for a refund.

IRS clerks are supposed to know how to split ES payments. They just didn't want to be bothered.

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