IRS Frustrations (a rant)

[TAX GUY]

Welcome to my world


I was going to suggest having the tax department look into it, since they prepared it, but seeing your follow up, sounds like they didn't? Only gave you the amounts for the estimated payments?

Anyway, while it does happen, the IRS processed your payment. Assuming you have proof the check was cashed or the EFT was confirmed, now you have confirm it was applied correctly and to the right tax year. Did you include a 1040ES with the check? If payment was done electronically, can you see that the correct tax year was selected? Get your proof in hand first, then call and present your case. The agent *should* be able to have you send them the proof, at that moment (fax or email). Until you can prove the payment was made, to the correct period, they can only go by what their system shows.

And for the record, we don't have the Bat phone to call the commissioner directly, like many often think. We have the same 800 number as everyone else. The wait times are equally as long for us.

 

[soccerdad72]

I was going to suggest having the tax department look into it, since they prepared it, but seeing your follow up, sounds like they didn't? Only gave you the amounts for the estimated payments?

Anyway, while it does happen, the IRS processed your payment. Assuming you have proof the check was cashed or the EFT was confirmed, now you have confirm it was applied correctly and to the right tax year. Did you include a 1040ES with the check? If payment was done electronically, can you see that the correct tax year was selected? Get your proof in hand first, then call and present your case. The agent *should* be able to have you send them the proof, at that moment (fax or email). Until you can prove the payment was made, to the correct period, they can only go by what their system shows.

And for the record, we don't have the Bat phone to call the commissioner directly, like many often think. We have the same 800 number as everyone else. The wait times are equally as long for us.

Her tax department did prepare the taxes (she's an audit partner for a Big 4 firm), but it's not an issue with the return (e.g. the IRS isn't claiming we did anything wrong with the return).

The payments were all done electronically and we have the confirmation of the EFT being processed. I'll have to have my wife check her ID.me account to verify that she chose the correct tax year. As I mentioned upthread, I used to do all the quarterly tax payments online, but once the government moved to ID.me, it suddenly wasn't recognizing payments made through my account on our joint returns (different issue from a different year).

Hopefully, the letter we're supposed to be receiving next week will clear up all the payment allocation issues and remove any penalties and interest.

 

[TAX GUY]

Her tax department did prepare the taxes (she's an audit partner for a Big 4 firm), but it's not an issue with the return (e.g. the IRS isn't claiming we did anything wrong with the return).

The payments were all done electronically and we have the confirmation of the EFT being processed. I'll have to have my wife check her ID.me account to verify that she chose the correct tax year. As I mentioned upthread, I used to do all the quarterly tax payments online, but once the government moved to ID.me, it suddenly wasn't recognizing payments made through my account on our joint returns (different issue from a different year).

Hopefully, the letter we're supposed to be receiving next week will clear up all the payment allocation issues and remove any penalties and interest.

Got it.

I've seen issues when one spouse makes a deposit with their account and the other is listed first on the return. The IRS system will see the first listed ID number, and sync to that. Even though it's a joint filed return, they can't or don't see beyond that. Once you actually get an agent on the phone, and show them the proof of payment, and that is paid from one spouse for the joint return, they should be able to allocate it properly.

This ties into comments I've had here in the past, listing the husband first (taxpayer) then the wife (spouse). It simply just keeps things uniform and the same for all. We explain this to our clients so when things like happen, it's "clear" where the payments need to be posted. We had one client that made estimated payments to their joint account, but then they divorced and the payments were HERS, but they posted to his (SS number was listed first). She was able to get it properly credited once she spoke with a live agent, and was able to show proof of payment and from her account. Linking of ID numbers is what typically causes these issues.

And the new log in credential portals are a bit of a PIA, but I understand why they have them. But from my experience with it, it's just an additional step to confirm identity to access the same account that was previously set up.

 

[soccerdad72]

Got it.

I've seen issues when one spouse makes a deposit with their account and the other is listed first on the return. The IRS system will see the first listed ID number, and sync to that. Even though it's a joint filed return, they can't or don't see beyond that. Once you actually get an agent on the phone, and show them the proof of payment, and that is paid from one spouse for the joint return, they should be able to allocate it properly.

Yeah, that issue (last year, IIRC) was solved quickly (relatively speaking ) with one phone call.