U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Politics and Other Controversies
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old Yesterday, 10:36 AM
 
5,690 posts, read 1,425,532 times
Reputation: 4398

Advertisements

Quote:
Originally Posted by Mistermobile View Post
I carefully prepared my federal income taxes for 2018 and received an IRS notice with a small check stating that I overpaid.



Something just did not look right so I downloaded from the IRS a transcript showing line-by-line how my taxes were calculated by the IRS. I found several errors, one of which was that one of my estimated tax payments was not included in the IRS calculation. So a month ago I wrote a letter with documentation demonstrating the IRS errors and asked for a re-calculation. No reply to date.


I noticed several things. The IRS uses a computer program to calculate personal income taxes. I tried to use one but stopped when my estimated taxes jumped from $600 to $600,000. In past years I have used others but without success. Bait and switch. You are requested to spend more and more money for a "better" program with no guaranty that the better program will work.



All things being equal, would it make more sense for both the tax payer and the IRS to use the same computer program application (i.e. the one the IRS uses)? Does the taxpayer have to spend money on an expensive tax attorney or accountant/CPA to do his/her taxes?


Besides just doing the math correctly as one total builds on another (so it would be nice to have a computer), I have found the instructions either do not say or mislead the taxpayer. Meaning the IRS is requiring one thing, but the taxpayer is not made the wiser.



I could go on, but the slow walk is what kills the taxpayer. Delay, delay, delay, until you write to your congressman as if that will help.

If you had a range like this, I would assume it's operator error. I admit some of the tax software can be confusing.


Quote:
Originally Posted by katharsis View Post
I was told -- I don't know whether or not it's true -- the the IRS already knows how much in taxes you should have paid even before they receive your completed 1040 (or whatever).

IF that is true, then why don't they just send a statement with the amount one owes or is owed, with the option of challenging it if you think it's wrong. Would save a heck of a lot of time and money.

(Yeah, I know, accounting and tax firms would have a fit.)
I doubt it. My understanding is they take your return and enter the numbers into their software.
Reply With Quote Quick reply to this message

 
Old Yesterday, 10:39 AM
 
23,936 posts, read 12,589,351 times
Reputation: 7649
Quote:
Originally Posted by Mistermobile View Post
I carefully prepared my federal income taxes for 2018 and received an IRS notice with a small check stating that I overpaid.



Something just did not look right so I downloaded from the IRS a transcript showing line-by-line how my taxes were calculated by the IRS. I found several errors, one of which was that one of my estimated tax payments was not included in the IRS calculation. So a month ago I wrote a letter with documentation demonstrating the IRS errors and asked for a re-calculation. No reply to date.


I noticed several things. The IRS uses a computer program to calculate personal income taxes. I tried to use one but stopped when my estimated taxes jumped from $600 to $600,000. In past years I have used others but without success. Bait and switch. You are requested to spend more and more money for a "better" program with no guaranty that the better program will work.



All things being equal, would it make more sense for both the tax payer and the IRS to use the same computer program application (i.e. the one the IRS uses)? Does the taxpayer have to spend money on an expensive tax attorney or accountant/CPA to do his/her taxes?


Besides just doing the math correctly as one total builds on another (so it would be nice to have a computer), I have found the instructions either do not say or mislead the taxpayer. Meaning the IRS is requiring one thing, but the taxpayer is not made the wiser.



I could go on, but the slow walk is what kills the taxpayer. Delay, delay, delay, until you write to your congressman as if that will help.
So the IRS sent you a notice saying that THEY say you paid too much and you are disputing that?

Are you saying you think your refund should be bigger?

I can't tell from your post.
Reply With Quote Quick reply to this message
 
Old Yesterday, 10:44 AM
 
7,188 posts, read 1,554,333 times
Reputation: 17631
Quote:
Originally Posted by UNC4Me View Post
How could they possibly know if you deduct things like business expenses, charitable contributions or any number of things they have no way of knowing? To claim they do makes no sense.
Yeah, I questioned it, too -- but maybe that would only apply people making less than a certain amount of income and guessing with good reason that they would take the standard deduction?

(For many years, my husband and I would only take the standard deduction because we didn't have much to itemize, and it was only myself and him.)

Last edited by katharsis; Yesterday at 11:21 AM..
Reply With Quote Quick reply to this message
 
Old Yesterday, 10:49 AM
 
Location: Avery Co., NC
1,000 posts, read 853,880 times
Reputation: 671
Google ...the law that never was. The Federal Reserve is not part of Gov't....read The Creature from Jekyll Island....
Reply With Quote Quick reply to this message
 
Old Yesterday, 10:50 AM
 
Location: Bran's tree
11,241 posts, read 4,970,758 times
Reputation: 12544
Quote:
Originally Posted by moneill View Post
So the IRS sent you a notice saying that THEY say you paid too much and you are disputing that?

Are you saying you think your refund should be bigger?

I can't tell from your post.
If there's any errors at all, he'd be wise to get them corrected, because if the IRS finds out themselves and realizes OP never said anything, it's off to the Big House with him.
Reply With Quote Quick reply to this message
 
Old Yesterday, 11:00 AM
 
Location: Haiku
4,613 posts, read 2,716,987 times
Reputation: 6711
Quote:
Originally Posted by katharsis View Post
I was told by a co-worker -- I don't know whether or not it's true -- the the IRS already knows how much in taxes you should have paid even before they receive your completed 1040 (or whatever).

IF that is true, then why don't they just send a statement with the amount one owes or is owed, with the option of challenging it if you think it's wrong? Would save a heck of a lot of time and money.

(Yeah, I know, accounting and tax firms would have a fit.)
They have most of the same numbers you do but not all of them, for instance dependents. For people who have losses there are a variety of ways those can be accounted for when filing taxes. The IRS won't be able to itemize deductions. And for some bizarre reason the IRS does not seem to know about tax prepayments other than those through payroll. I make quarterly tax prepayments to the Dept of Treasury but those are inaccessible to the IRS near as I can tell - I got audited once by the IRS and had to send them proof of tax-prepayments!
Reply With Quote Quick reply to this message
 
Old Yesterday, 11:14 AM
Status: "Proud American, Always and Forever" (set 24 days ago)
 
Location: DMV Area/NYC/Honolulu
12,699 posts, read 6,564,295 times
Reputation: 12236
Quote:
Originally Posted by notnamed View Post
Last time I used TurboTax state was a separate purchase. My father managed to use it while in a state with state taxes but maintaining permanent residency in Florida no problem.

Also aren't the in house HR Block folks just using the same program and they just hired someone off the street to fill it out for you?
They seem to have override codes to manually input things/take things out from what I could tell. If that option is available to the rank and file, I couldn't figure it out myself.
Reply With Quote Quick reply to this message
 
Old Yesterday, 11:51 AM
 
1,563 posts, read 1,381,420 times
Reputation: 1289
Default Since you asked. No.

Quote:
Originally Posted by notnamed View Post
Last time I used TurboTax state was a separate purchase. My father managed to use it while in a state with state taxes but maintaining permanent residency in Florida no problem.

Also aren't the in house HR Block folks just using the same program and they just hired someone off the street to fill it out for you?



HR Block was the seller of the tax software that was "free" on-line but it stopped and "recommended" because I had a tough return, to buy their boxed package of a more powerful application, which I did, and found it did not do the job. So I went to the seasonal HR Block office in the strip mall and asked for help.



I was told that for $300 they would take a stab at my return but that their HR Block "office" software was not compatible with the national retail sold stuff. At this stage, I wondered if I was being taken. Goofy old me.
Reply With Quote Quick reply to this message
 
Old Yesterday, 12:06 PM
 
1,563 posts, read 1,381,420 times
Reputation: 1289
Default Tax prepayments = estimated quarterly tax payments

Quote:
Originally Posted by TwoByFour View Post
They have most of the same numbers you do but not all of them, for instance dependents. For people who have losses there are a variety of ways those can be accounted for when filing taxes. The IRS won't be able to itemize deductions. And for some bizarre reason the IRS does not seem to know about tax prepayments other than those through payroll. I make quarterly tax prepayments to the Dept of Treasury but those are inaccessible to the IRS near as I can tell - I got audited once by the IRS and had to send them proof of tax-prepayments!



Quarterly tax prepayments payable to the IRS are also called estimated quarterly tax payments.


Publication 505, Tax Withholding and Estimated Tax. You can find out if you paid them on the IRS website under personal income taxes. So yes. They know about them.
Reply With Quote Quick reply to this message
 
Old Yesterday, 12:25 PM
 
Location: Buckeye, AZ
27,661 posts, read 16,013,094 times
Reputation: 9967
I use FreeTax USA because I have a simple two W-2 return. I only pay for my state processing.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Politics and Other Controversies
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top