ILLMAS Posted August 24, 2017 Report Share Posted August 24, 2017 I am confused, TP owed $1,593 of SRP + $5,000 of SE Tax totaling $6,593, he had withholdings of $1K and made $4K in estimated tax payment leaving him with a balance of $593 which was paid by April 15, 2017, today he received a SRP bill for $1,593 which has been paid already, I am miss learning something? Basically my client is paying twice he send the payment, anyone else believe the letter was sent in error? Quote Link to comment Share on other sites More sharing options...
mriina Posted August 24, 2017 Report Share Posted August 24, 2017 No, he still owes $1,593. Tax = 6,593, less 5,000 in tax payments would still be $1,593. Quote Link to comment Share on other sites More sharing options...
Roberts Posted August 24, 2017 Report Share Posted August 24, 2017 I hope that's a joke. Was the $593 check cashed by the IRS? Quote Link to comment Share on other sites More sharing options...
jklcpa Posted August 24, 2017 Report Share Posted August 24, 2017 32 minutes ago, ILLMAS said: leaving him with a balance of $593 which was paid by April 15, 2017, today he received a SRP bill for $1,593 which has been paid already I haven't seen anything like that. I think you have a typo in that balance due. Didn't the return show a balance due of $1,593 that was paid in April? It sounds like that April payment of the balance due wasn't applied properly. If you e-filed the return and sent the client off with the 1040-V, are you absolutely sure that the client paid it? Have him get a copy of the cancelled check as proof of payment when you or he answers the letter. 1 Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted August 24, 2017 Author Report Share Posted August 24, 2017 Yes, typo $5k, not $4K, sorry. Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted August 24, 2017 Report Share Posted August 24, 2017 Ask him to provide copies of the front and back of all payments (including estimates) that he made for tax year 2016. My gut tells me he is leaving out very relevant facts. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted August 24, 2017 Author Report Share Posted August 24, 2017 I am going to call the IRS tomorrow. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted August 24, 2017 Report Share Posted August 24, 2017 Agree with Jack that something doesn't make sense with this and that you're probably going to need proof of all the payments made. 1 Quote Link to comment Share on other sites More sharing options...
Tax Prep by Deb Posted August 25, 2017 Report Share Posted August 25, 2017 Everyone of my clients who owed the penalty and paid it by the due date have received a bill. You have to call and have them move the payment over. A royal mess! 3 Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted August 25, 2017 Author Report Share Posted August 25, 2017 39 minutes ago, Tax Prep by Deb said: Everyone of my clients who owed the penalty and paid it by the due date have received a bill. You have to call and have them move the payment over. A royal mess! That's what I figured, thanks Quote Link to comment Share on other sites More sharing options...
jklcpa Posted August 25, 2017 Report Share Posted August 25, 2017 2 hours ago, Tax Prep by Deb said: Everyone of my clients who owed the penalty and paid it by the due date have received a bill. You have to call and have them move the payment over. A royal mess! Does this include clients that ended up with returns showing a net refund too? I only had one client this season that actually owed the penalty (penalty was $290), and that return had a net refund of about $1000 that was refunded by direct deposit 9 days later. I haven't heard from him about receiving any notice of balance due. Quote Link to comment Share on other sites More sharing options...
Tax Prep by Deb Posted August 25, 2017 Report Share Posted August 25, 2017 Only ones seem to be those who owed. I have not heard from anyone with a refund. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted August 25, 2017 Author Report Share Posted August 25, 2017 Just got of the phone with the IRS, everything is fine, agent said notices are generated automatically etc.... 2 Quote Link to comment Share on other sites More sharing options...
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