IRS Notices & Form 3800 credits

[SFA]

We now have several 1040 clients who have received denial of credits from pass-through entities that were submitted using Form 3800 and the related form specific to the tax credit such as F8941 Credit for Small Employer Health Insurance Premiums.

The returns were all e-filed near the end of March 2013 or later. One client first received notice in April and we responded by sending copies of all the forms and copies of the federal K-1.

On 6-10-13 another collection notice was sent to the same client for the balance due (because of denial of credit). When I called the IRS, I was told that they had no record of our original response, and that the original return did not even include Form 3800. We were advised to submit a 1040X and include Forms 3800 & F8941, so that the return could be processed correctly!?

Interesting, because our ATX report shows that F3800 & F8941 were both included in the e-file transmission. So, is this an ATX problem or an IRS problem?

[Jack from Ohio]

It is an easy excuse by the IRS.

[SFA]

Sorry folks. After posting this topic, I searched the forums for 3800 and found that this subject has already been covered in May. However, in checking our inputs, and comparing to the advice from the prior forum, looks like our input was correct.

What still doesn't sit well, is that they have no record of our April correspondence and suggest that we use 1040X to secure the credit.

So much busy work and wasted time.

[kcjenkins]

It's the fact that they claim not to have your additional correspondence that makes me think the problem was THEIRS, and they just don't want to admit that. We've all, or at least most of us, had such situations over some form that we knew we sent, they they claimed to have not received. Efiling was supposed to reduce those problems, and it has, but it has clearly not eliminated it. And there is not a thing you can do except to send it all again. They almost never admit a problem on their end, in my experience. Even one time a few years back when they were wanting to make an adjustment over an item that they could only have gotten the amount of from the very form they CLAIMED to have never received.

[SFA]

Even one time a few years back when they were wanting to make an adjustment over an item that they could only have gotten the amount of from the very form they CLAIMED to have never received.

Well now, that's too funny. Thanks for the perspective.

[jainen]

>>is this an ATX problem or an IRS problem?<<

Start by pulling the return transcript through e-services or 1-800-908-9946. Client can get it for you immediately if you haven't filed P.O.A. yet.