IRS Generosity

[BobKamman]

Client received a letter that they had made a mistake on “taxes” part of last year’s Schedule A. This is what they filed:

This is what the IRS notice said:

What they did, was allow $10,000 for total taxes, because that’s what most people claimed, and didn’t look at the numbers that added up to less. They reduced taxable income by exactly $2,803, resulting in a refund of $766 including interest.

This return has everything – Schedules A, B, C, D, and donation of publicly traded stock. This year’s fee came out to $750. But basically it’s free, because paper filing last year resulted in an unexpected refund.

[dkh]

So does this mean all clients should paper file to increase the chance of receiving an unexpected "bonus" refund ????

[IRonMaN]

Jim isn't going to go that route.  That extra time with assembly would cost him 4.3 returns a day.

[sjrcpa]

That's bizarre. Do you think IRS will catch their mistake and ask for the money back?

[abctax55]

Ten years ago... I would have said the IRS would catch the mistake & want the money back.

Now - I doubt it.

Make the client split it with you???