Today TaxMama® hears from Jack in the TaxQuips Forum, who is frustrated. Let me summarize. After not filing for a while, he got caught up. Now, the IRS has sent his wife a notice saying she didn’t report the sales of her stock. Jack says all that information was right there on their joint return. Why is he getting a threatening, registered letter now?
Dear Jack,
Mike Reed, EA explains what is probably going on.
As you are finding out, the world operates much simpler when things are filed on time and refunds are timely refunded. Late filings result in more “looks” and more “questions” causing more time and stress – as you said, above.
I seriously doubt the IRS “lost your records” – in the end I bet you’ll find the “mistakes” are right there in black & white – the wrong forms, the wrong entries, the wrong expectations. The IRS is pretty efficient – over 124 Mil returns filed last year.
Make yourself a promise to be prompt in the future. If necessary enlist an EA to help with your taxes – in the end you’ll pay less, sleep better and enjoy life more.
Rita Lewis, EA points out that the notice may be a result of a Substitute for Return that the IRS filed on your behalf when you didn’t originally file a tax return.
TaxMama® adds this. After not filing for years, the IRS doesn’t really have a record of your wife’s tax return. Believe it or not, even in the 21st century, the IRS computers only look at the first Social Security Number on the tax return – unless you have a history of filing jointly. That’s why the IRS computers never saw a tax return filed under your wife’s SSN. You may well be able to resolve this with a phone call. Be sure to follow up in writing – after getting the IRS agent’s name and employee ID# – to confirm your conversation.
And remember, you can find answers to all kinds of questions about IRS procedures and other tax and business issues, free. Where? Where else? At www.TaxMama.com.
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