Unexpected refund

[Jack from Ohio]

I have had IRS major confusion when sending back a check, even WITH explainations, documentation etc. For 2011, I have a client that received more than he should, we amended to correct the mistake and he sent the excess refund back. This was in March. 6 weeks later, IRS sends him a check for the exact amount that was sent with the amended return with interest.

Immediately, resubmitted the amended return with a 3 paragraph explaination and same documentation and a check for the amount the IRS sent to him. 6 weeks later, the IRS sends him a check for the amount he sent with the 2nd amended return. No letters of explaination about either of the two checks sent back to the client.

First week of July, client receives a notice saying he owes the amount of the second check sent to him. Submitted full page letter of explaination and copies of both previously amended returns and client sent a check for the proper amount. 10 days ago, he receives a letter acknowledging his letter and they cashed his check.

Waiting to see what is next.

This is the same kind of confusion that I have experienced when sending uncashed IRS checks back, even with documentation. It takes VERY LITTLE to confuse the people processing amended returns, or responses to notices. I no longer expect the IRS to understand any discourse at greater than a 3rd grade level. We write response letters with this in mind.

Pathetic, to say the least!!

[Margaret CPA in OH]

Wow....

[Pacun]

I have had IRS major confusion when sending back a check, even WITH explainations, documentation etc. For 2011, I have a client that received more than he should, we amended to correct the mistake and he sent the excess refund back. This was in March. 6 weeks later, IRS sends him a check for the exact amount that was sent with the amended return with interest.

I think it is better to send a second 1040 instead of a 1040X when done prior to April 16th.

[Jack from Ohio]

I think it is better to send a second 1040 instead of a 1040X when done prior to April 16th.

I have had no experiences or any information that would prove that sending a second 1040 would result in any different kind of results. All paper returns are scanned now, and that alone is a huge source of problems.

The IRS has been deluged with new responsibilities, and at the same time, their budget has been cut. The quality of the people is suffering. Not only in training and experience, but attitude about their job. There are shining examples of exceptions, but they are definitely the minority. This is my experience.

[OldJack]

I no longer expect the IRS to understand any discourse at greater than a 3rd grade level. We write response letters with this in mind.

LOL ............ I agree and have always written my correspondence to the IRS on that level.

One case I had was that a client had to prove they had made a payroll tax payment, so they copied their canceled check front and back, cut to check size gluing back to front to make it look like a check so a 3rd grader would recognize what it was. You guessed it..... the IRS cashed it and the bank processed it leaving the client with paying the tax twice. It took a lot of correspondence over a year from me to get it cleared up. LOL

[Jack from Ohio]

LOL ............ I agree and have always written my correspondence to the IRS on that level.

One case I had was that a client had to prove they had made a payroll tax payment, so they copied their canceled check front and back, cut to check size gluing back to front to make it look like a check so a 3rd grader would recognize what it was. You guessed it..... the IRS cashed it and the bank processed it leaving the client with paying the tax twice. It took a lot of correspondence over a year from me to get it cleared up. LOL

I believe it!! There may be some intelligent people working at the IRS, but they are the minority!! I will post the results from my client when it is finally settled!!

[Catherine]

LOL ............ I agree and have always written my correspondence to the IRS on that level.

One case I had was that a client had to prove they had made a payroll tax payment, so they copied their canceled check front and back, cut to check size gluing back to front to make it look like a check so a 3rd grader would recognize what it was. You guessed it..... the IRS cashed it and the bank processed it leaving the client with paying the tax twice. It took a lot of correspondence over a year from me to get it cleared up. LOL

Some real "shining lights" at the bank that processed the "check," as well.

[Pacun]

Banks don't see or touch the checks anymore. You can even deposit a picture of a check these days!!!

[Jack from Ohio]

Banks don't see or touch the checks anymore. You can even deposit a picture of a check these days!!!

Some human had to touch it. A photocopy will not have MICR ink for the machine to read. A human would attach a small strip to the bottom with the RTN and ACT # in MICR ink so the machines can process it.

[OldJack]

>>the IRS cashed it and the bank processed it leaving the client with paying the tax twice. <<

I must clarify that the copy machine check was "canceled and returned with the statement" to the client as this was before banks quit serving their customer with not returning checks!

[joanmcq]

Of course, the act of cutting it out and gluing the back to the front is dumb. Why not just a photocopy of front and back on the same piece of paper like everyone else does?

As someone who ran proof for a bank back in her school days (did the MICR encoding on the checks), we did NOT look at the back of the damn checks. And often one that had bounced was redeposited for processing.

[OldJack]

Of course, the act of cutting it out and gluing the back to the front is dumb. Why not just a photocopy of front and back on the same piece of paper like everyone else does?

You are to young to know that banks cleared check before the days of MICR encoding, this was probably around the time you were born. The client's employee that copied and pasted was a 17 year old school girl, the daughter of the owner. Yes... I'm the dumb old fart for not calling her dumb.

[joanmcq]

I worked for a bank clearing checks; what do you think running proof is? Funny thing is, later on I found out that was the job my grandmother had for most of her life.

Are you saying this happened in 1960?

[OldJack]

Are you saying this happened in 1960?

Sorry... didn't mean to cause you to show your age! I get carried away sometimes.