Eli Posted March 28, 2008 Report Share Posted March 28, 2008 I received a call from a client who received a letter from the IRS saying they did not report their unemployment compensation on the 2006 return. The letter was requesting they pay $1808 in additional taxes. After looking at the return the IRS stance was correct. There was no unemployment compensation reported. I went back and checked their file. I found attached to the return their form 1099G. I then thought I forgot to enter it, but noticed there was a 1099G tab on the return. After checking it again I noticed I had entered the correct amount on the worksheet, but it did not carry over to the 1040. Wondering if anyone has had this problem before?? I offered to pay the interest, but they said they were not being charged interest yet. I then offered to reimburse them what I had charged them for doing their return, but they politely declined. They finally agreed on a free return for next year. Quote Link to comment Share on other sites More sharing options...
jmallard Posted March 28, 2008 Report Share Posted March 28, 2008 Hi Eli, Yes, I've had this happen to me before. Client has a state refund from 2006. Do a client rollover for 2007. The 1099-G tab is present in the return. Take a look at the 1040, page 1 after entering all other tax info and the state refund is not present. Check the 1099G tab and the payer information is present, but no numbers. It should rollover automatically. I've had some returns that do rollover and some that don't On those that don't, I have gone to the 1099G input sheet and entered the info. Then check the 1040 and the amount is doubled. So, I go in and delete one of the 1099G input sheets. The second one usually does not have all the payer information. This is something to watch our for on a regular basis. I always double check now. Jerry Quote Link to comment Share on other sites More sharing options...
Cathy Posted March 28, 2008 Report Share Posted March 28, 2008 Eli, I've never had a return corrected for any income info omitted and I've been preparing returns for 32 years now. I'm a one person office so I first prepare a pen or pencil sheet....three columns...I (Income) F (Federal) S (State). All income and withholding recorded and totaled and then I enter info into program from the w-2's, etc.. Takes just a couple of minutes extra...most of the time under a minute, but sure beats having another employee to check my work. I check total of AGI, itemized deductions, Sch C, LT or ST cap. gains etc... after I've entered figures to the program. I never trust ANY program to properly transfer figures to proper lines on the 1040...or any form for that matter. You are too good of a preparer to find yourself in the predicament you are now in. Back to your original question...has it ever happened that the unemployment didn't get properly transferred to the 1040...probably so, but I caught it before the return was released. I hope you don't take my response the wrong way...I've been very impressed with you over the years and just hate it that you have this situation. Cathy Quote Link to comment Share on other sites More sharing options...
Eli Posted March 28, 2008 Author Report Share Posted March 28, 2008 Eli, I've never had a return corrected for any income info omitted and I've been preparing returns for 32 years now. I'm a one person office so I first prepare a pen or pencil sheet....three columns...I (Income) F (Federal) S (State). All income and withholding recorded and totaled and then I enter info into program from the w-2's, etc.. Takes just a couple of minutes extra...most of the time under a minute, but sure beats having another employee to check my work. I check total of AGI, itemized deductions, Sch C, LT or ST cap. gains etc... after I've entered figures to the program. I never trust ANY program to properly transfer figures to proper lines on the 1040...or any form for that matter. You are too good of a preparer to find yourself in the predicament you are now in. Back to your original question...has it ever happened that the unemployment didn't get properly transferred to the 1040...probably so, but I caught it before the return was released. I hope you don't take my response the wrong way...I've been very impressed with you over the years and just hate it that you have this situation. Cathy Cathy, definitely did not take it the wrong way. I appreciate the constructive criticism offered. That was why I offered to pay the interest & reimburse their fee. I knew part of it was my mistake for for not double checking that return. At the same time I was curious to see if this has happened before on this specific year. Again I always appreciate yours & everyone else's input on this forum. Eli Quote Link to comment Share on other sites More sharing options...
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