When are those new IRS hires starting?

[IRonMaN]

So a client comes in with a letter from the IRS stating that the amended return that was submitted a year ago is all jacked up. 

"  Tax period Dec 31, 2019

There are errors on your 1040-X that need to be corrected and a new form 104X submitted.  Line 1, column A is incorrect.  Your original return also has your filing status as head of household but your amended return has you listed as single.  These items throw off all subsequent figures and schedule D tax computation"

Dear folks at the IRS, did happen to look at the actual 1040X and notice that the return was to amend his 2020 1040?  You would be amazed at what a difference a year makes 😬

[Just-Lisa-Now-]

I had a 2019 1040X that IRS processed as a 2020 1040X, we finally got them to acknowledge that they screwed up and they fixed 2019, but they still seem to think theres a 2020 1040X also and are asking for money.

Im honestly not sure where to go with this anymore except for sending a letter with the order of events and the bottom lines of each return that was actually filed.

[IRonMaN]

"Im honestly not sure where to go with this anymore"

Retirement sounds like a popular option for a lot of folks these days😁

[dkh]

The new hires will be trained by the current staff.......... yikes!

[IRonMaN]

Now I’m really scared😱

[rbynaker]

Just curious, were these paper filed or were you helping the IRS work out the bugs in the new 1040X efile system?

[IRonMaN]

Paper filed - balance due - no rush😁

[BobKamman]

I have a similar problem with clients who filed a 2020 amended return, because they received a corrected 1099-G for unemployment compensation.  The additional income was $2,151, and they are in the 24% tax bracket.  Standard deduction, no credits.   $2,151 x 24% equals $516, right?  Which is what they paid.  Ten months later, they receive a Notice CP22A showing increase in tax of $949 (that comes out to 44% tax rate) and a balance due of $423 plus interest.  

Where would you start?  This isn't even a math-error notice, for which you can demand a notice of deficiency.  I had one of those that results in a refund, not a notice, about ten months after we brought it to IRS attention.  Or maybe it is.  So wait another ten months?  Or maybe we could call the CP22A a notice of deficiency because, after all, what else would it be?  I'm tempted to invest $60 to find out what would happen.  At least it would bring the case to the attention of someone higher than a GS-4 new hire.  

[The-Tax-Lady]

Try the Taxpayer's Advocate office. If they accept the case, which they should, they will get the prevailing case of "terminal dumb ass" resolved for you and the taxpayer. I've worked with them on a few hopelessly, fuc*ed up returns and they are great, at least in my experience.

[IRonMaN]

”Terminal dumb ass” - is that a technical term?😉

[The-Tax-Lady]

I ended up with an actual Field Audit of a 2014 return, back in 2018. IRS initially determined the taxpayer owed $247.00, instead of processing it correctly as a refund of the $247.00 due to the taxpayer. I could not get thru to anyone that understood it should have been the refund.

WTF? $247.00, a field audit? I laughed when I got the notice that they would like to do this in May 2018. I called and said "sure stop by whenever you want". I LMAO until I found out about all the documentation, bank statements and everything else the taxpayer was required to provide. My client was terrified, even though I assured them they would not have to be there, as per the Field Agent, and that we would be successful when it was done. 

A very nice Field Agent came in, spent the entire day pouring over this simple little return and all the documents, and the only question she asked was "why I depreciated a bobcat used in the operation of their small farm for 7 years instead of 5 years" I got out my handy dandy, Deluxe Edition of the Tax Book for 2014 and showed her the 7-year property, Asset Class, 01.1, Agriculture and that resolved that major issue.

It took about 6 months for my clients to get their refund of $247.00, which almost covered the charges from their bank for reproducing all the old bank statements, which they couldn't find. Of course, the couple each had 2 individual accounts, checking and savings, at two separate banks, in addition to their joint account at a 3rd bank.

When I received the notice that the correction was made and a refund would be issued, I called the wife to let her know and then, she mistakenly text me, instead of the husband "It's OK, no jail time". I could not believe they were that scared over nothing, but they didn't believe me, I guess, when I reassured them over and over that it would be OK.

Every time I hear on the news that the IRS is unable to audit taxpayers, due to staff shortages, I laugh and yell at the TV, "I know where one of them wasted an entire day" It was so ridiculous, I couldn't even bring myself to charge the clients anything for my wasted day. It was my first and last audit, "Knock on wood"😂

[The-Tax-Lady]

Absolutely! 😂

[BobKamman]

My local TA office doesn't like me because I have made them look useless too many times.  They either ignore the cases I send them, or reject them.  When that happens I send the case to a member of Congress, who sends it to IRS, who assigns it to the Taxpayer Advocate.  That really annoys them.  

[IRonMaN]

How could anybody possibly not like Bob😁