komtax

Michael ...I mean typical box 2, 4, 6 withholding plus NY states / NYC. TOM...I tried to extrapolate ...based on the deposits; I am not confident of the result , because of it assumes proper withholding on the part of the company. Pacun...my first action was calling practitioner hotline...unfortunately I got a person who was probably too stressed for the day; got very impatient with taxpayer whose English is well...needs improvement; got disconnected; when I tried again with other client waiting ( I do taxes on the spot---I have HRB and JH not far from me ) Jainem...this a third year client, I don't want to abandon him. I fully believe him, once I sent him to get bank printout which he brought. MsTabbyKats .... your approach seems more appropriate, more defensible for this case, as the taxpayer has bank deposits to show actual payments received, and the company seems sleazy, more likely reported no payments; hence the 1099-MISC with box 7 income. Hadn't occurred to me. I'll follow your take... Thanks everybody!

Taxed...I left out something. The company is out of business. ; taxpayer unable to reach any contact. I tried to reach them on his behalf too, no result. The address has another company in the line of business--but they say no relation to the previous business. I've reached a road block

Taxpayer worked for Taxi and Limousine company. Was paid by non-payroll checks accompanied with taxes witholding statements. Taxpayer received 1099-Misc with almost double the amount of payment he actually received. From bank records the amounts he deposited ( received ) is much less than stated on 1099-misc. Also, in two of the "deductions statement" that accompanied his pays for Feb2012 ( the only two he could find), the company was witholding payroll taxes; thus the company seems to have considered him an employee. At issue: do I file sch C with corrected amount of income ( the actual as per client records ) or a regular return with forms 4852 and SS-8 and paper file? or .... ? Anyone with experience with this issue? Thanks for any suggestion.

first did you calculate the pa credit for taxes paid to other locality?

Taxtrio thanks I'll explain your take to her. JohnH thanks for the input.

Former H&RB client's audit resulted in additional payments due to IRS. Client had paid for audit "peace of mind" protection, so H&RB paid part of the additional owed taxes, and issued client a 1099-misc ( box 3 other income) for amount they paid IRS. Client is furious when told by me it had to reported as income and paid taxes on it. Is there any other way to report it other than on line 21 ( i am filing 1040 )? P.S. in case you may be wondering, by looking at prior return it appears that the error was HR&B ). Thanks for your feeback.

export the file to flash drive then try to open the one in the flashdrive. worked once for me in a similar situation. good luck.

I feel your pain about loosing out by trying to do the right thing. My practice has been steadily declining as a result. For the past two years i've looking at income sources other than taxation.

Thanks everybody for a quick feedback. You guys/gals are great! I took miss Tabbykats advice and called IRS and requested a manual review. IRS acknowledged it's error ( computer error ). It was prompted when their computer recalculated the additional tax credit on the return ( supposedly ATX software calculated it wrong--- there was no itin on the 8812, if you re wondering ). How to resolve for future reference per IRS instructions: 1) alert IRS of the discrepancy so they can manually track the issue 2) if taxpayer receives a paper check---write void on the back of the check and return to IRS ( preferably nearest office 3) if its a direct deposit, cut IRS a check for the overpayment, with a letter explaining the discrepancy. That way the tax payer is covered from interest issues. Note: if IRS is not alerted to manually monitor this overpayment return process, its computer may spit out the returned payment to the taxpayer again! Thanks again Jen.

Did client's return, and client was supposed to receive about $7K+ federal refund. About almost a month later "where is my refund" was showing the vague " being processed." After what seems tens of phone calls from client basically harassing about her refund, I gave her an appointment to come and call the IRS ( she had received her state's refund). When she came in, just before calling, I looked once more at "where is my refund". This times it says that that there was an adjustment made to her return, that she would receive 30K+ ( thirty thousand +) dollars, and get a letter in mail... I assumed that the data entry technician for IRS made a typo and told client to expect less money than expected that she would get a letter, to bring to me etc.... TODAY imagine my surpise when she actually had over thirty thousands deposited to her account. Anybody has seen something like this before? I know it's error on IRS part. Client is low income and has many rent arrears. lots of temptation there. How would you handle this. JEN.