Tax Prep by Deb Posted January 26, 2009 Report Share Posted January 26, 2009 This was posted on the official ATX site and I was wondering if any of you have heard it or know anything about it? "Yes they are going to hold up returns that have anything other than a zero on line 70. The IRS sent us something on Friday that said they were having to many returns calculated incorrectly for the RRC. Therefore if the return has anything other than zero on line 70, they will hold the funds until they can manually calculate these returns for accuracy. The delay they said could be from 8 - 12 weeks. SBBT & Republic banks are denying all RAL's with anything on line 70 other zero also. To keep from having these delays and denials, the IRS and the banks are suggesting that you fill in the worksheet for the RRC with the maximum amounts so that line 70 will be zero. If the cllient is actually entitled to a RRC (i.e. added a dependent, etc.), the IRS will recalculate the return and send the client the RRC separately." Quote Link to comment Share on other sites More sharing options...
Janitor Bob Posted January 26, 2009 Report Share Posted January 26, 2009 This was posted on the official ATX site and I was wondering if any of you have heard it or know anything about it? "Yes they are going to hold up returns that have anything other than a zero on line 70. The IRS sent us something on Friday that said they were having to many returns calculated incorrectly for the RRC. Therefore if the return has anything other than zero on line 70, they will hold the funds until they can manually calculate these returns for accuracy. The delay they said could be from 8 - 12 weeks. SBBT & Republic banks are denying all RAL's with anything on line 70 other zero also. To keep from having these delays and denials, the IRS and the banks are suggesting that you fill in the worksheet for the RRC with the maximum amounts so that line 70 will be zero. If the cllient is actually entitled to a RRC (i.e. added a dependent, etc.), the IRS will recalculate the return and send the client the RRC separately." Are you serious?....Please tell me this is some kind of joke! Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted January 26, 2009 Report Share Posted January 26, 2009 I saw that also. I got a message on the bank tab on the software from SBBT about not giving RALs when there was a RRC on the return. It is serious. I guess there are a lot of preparers (or self preparers) who are not doing their due dilligence on the returns. Sucks. More delays and issues. Tom Lodi, CA Quote Link to comment Share on other sites More sharing options...
Janitor Bob Posted January 26, 2009 Report Share Posted January 26, 2009 I saw that also. I got a message on the bank tab on the software from SBBT about not giving RALs when there was a RRC on the return. It is serious. I guess there are a lot of preparers (or self preparers) who are not doing their due dilligence on the returns. Sucks. More delays and issues. Tom Lodi, CA I have only had one client who was entitled to the RRC, but they were expecting (and needing) their refund ASAP....direct deposit on Feb 6....Will IRS delay their entire refund or just the $300.00 RRC portion? Quote Link to comment Share on other sites More sharing options...
Ray in Ohio Posted January 26, 2009 Report Share Posted January 26, 2009 Is this going to effect anything other than bank checks? I had a client today who has $18.00 on line 70. Regular efile, paper check by mail. Will his refund be delayed also? (If it does, I'll just keep the $18.00 of line 70) Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted January 26, 2009 Report Share Posted January 26, 2009 That's not exactly what it says. It says that there MAY be a delay in processing if an incorrect amount is used. If you go to the stimulus website and get the proper amount your refund should sail through. The banks have taken it upon themselves to reject RALs with RRC, not the IRS. If you go to the IRS RRC website you will not find such a statement. taxbilly Quote Link to comment Share on other sites More sharing options...
Tax Prep by Deb Posted January 26, 2009 Author Report Share Posted January 26, 2009 For those wanting to know where the info came from it was the MYATX website under bank issues. I agree with TAXBILLY, I saw the exact same wording as he did that if it matches all is well. It's just when it doesn't match with IRS that it will be hand processed and therefore take longer. But if we use the correct info all should be ok? Deb! Quote Link to comment Share on other sites More sharing options...
JRS Posted January 26, 2009 Report Share Posted January 26, 2009 The IRS also says (paper return) you can write RRC next to line 70 (1040) and they will figure it. Efile, "the software will figure"!! Quote Link to comment Share on other sites More sharing options...
jainen Posted January 27, 2009 Report Share Posted January 27, 2009 >>the IRS and the banks are suggesting that you fill in the worksheet for the RRC with the maximum amounts so that line 70 will be zero.<< I don't know the original source of this rumor that the banks and EF intermediaries are spreading, but one thing is for sure -- the IRS has NOT notified tax preparers "suggesting" anything, certainly not that you should file an incorrect return. If anyone sees a genuine citation in any of this gossip, let us know. Frankly, I think there is an ethics problem and possibly some legal risk in signing a return that deliberately omits a credit to avoid normal IRS processing. Remember when the banks first freaked out about RALs for Earned Income Credit? Same excuse: IRS processing delays. I guess if the taxpayers are in such a hurry to get their money back, we should expect the banks to feel the same way. Quote Link to comment Share on other sites More sharing options...
tilt Posted January 27, 2009 Report Share Posted January 27, 2009 One of the ProSeries moderators on the Live Community was suggesting that you make the RRC zero and said they were working on making adjustment. That's bogus. The IRS approves all the programs and programming so it should be correct when you enter the proper numbers. I bet they won't hold up my return. I qualify for RRC, but I'm sure they'll be more than happy because I owe this year. Quote Link to comment Share on other sites More sharing options...
Tax Prep by Deb Posted January 27, 2009 Author Report Share Posted January 27, 2009 >>the IRS and the banks are suggesting that you fill in the worksheet for the RRC with the maximum amounts so that line 70 will be zero.<< I don't know the original source of this rumor that the banks and EF intermediaries are spreading, but one thing is for sure -- the IRS has NOT notified tax preparers "suggesting" anything, certainly not that you should file an incorrect return. If anyone sees a genuine citation in any of this gossip, let us know. Frankly, I think there is an ethics problem and possibly some legal risk in signing a return that deliberately omits a credit to avoid normal IRS processing. Remember when the banks first freaked out about RALs for Earned Income Credit? Same excuse: IRS processing delays. I guess if the taxpayers are in such a hurry to get their money back, we should expect the banks to feel the same way. I agree. I searched to try and find where this was coming from and the only mention was on the ATX site under bank issues. From what I read this credit is not automatic we must request it, so I was very leary of omitting it from the return per suggested! Deb! Quote Link to comment Share on other sites More sharing options...
David1980 Posted January 27, 2009 Report Share Posted January 27, 2009 The initial source was the advisory board who had a conference with IRS. The advisory board members of course leaked out that information. Or misinformation as it's gotten all twisted. All they really know is if you put an incorrect amount on line 70 it'll be delayed, and sounds like a substantial delay. If you put a right amount it might not have any delay. Quote Link to comment Share on other sites More sharing options...
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