The IRS Audit Blog

Archive for October, 2008

Question: I did not get IRS stimulus Payment. How to proceed?

I did file 2007 tax returns (Joint filing – Spouse not working). My spouse and I are having SSN. My daughter is not born here, so I also did apply for ITIN for daughter while tax filing. Tax filing was done prior to April 14th 2008. The tax filing and ITIN request form were sent to IRS, Austin office. I received generated ITIN for daughter by mid June.

I was expecting $1,200 as stimulus payment by July 4th as my SSN ends with 77. I did not receive anything so far (not even letter). I did search in IRS site (“Where is my stimulus payment” link) based on my SSN, Filing status and number of exemptions. Their system did not find any records.

My question is:

1. I know, my daughter is not eligible as she is not having SSN. However, my spouse and I are having SSN . Are we not supposed to be getting $1200 ($600 + $600)

Is there anything I can do with IRS to receive stimulus?

Thanks!

Answer: There are 2 separate issues here, the amount of your rebate and when you’ll receive it. I’ll address them separately to keep things as simple as possible.

Your rebate will be based upon the tax liability shown on your tax return. It will be between $600 and $1,200, not an automatic $1,200. If you filed Form 1040, add the amounts on lines 57 and 52. If you filed Form 1040-A, add the amounts on lines 35 and 32. That is your tax liability. If it’s $600 or less, you’ll receive $600. If it’s between $600 and $1,200, you’ll receive an amount equal to that. If it’s $1,200 or more, you’ll receive $1,200. (You are correct that you will not receive the $300 for your daughter since she has an ITIN and not an SSN.)

Although you filed your return prior to April 14th, it was not likely processed until a couple of weeks ago. It takes 6 to 8 weeks to process the ITIN application and another 6 to 8 weeks to process your return and issue any refund due, if any. This means that your rebate will not be included in the first batch that just finished up. Expect yours in a few weeks, either in late July or early to mid August.

If you’re eligible, and it appears that you are as long as your return showed at least $3,000 in Qualifying Income, you’ll get your rebate automatically. There’s nothing that you can do to speed up the process unfortunately. Check the “Where’s My Rebate” page on the IRS website every few days. Once yours has been processed, it will show up there. Don’t bother calling the IRS. You’ll just be stuck on hold for an extended period of time (and maybe get dropped before anyone comes on the line) and they can only tell you the same thing that the web page will.

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Question: Issue with IRS resulting from tax preparer omitting info?

In 2006, went to tax preparer.Now in 2008 I got a notice that my income was adjusted due to omitted 1099-R forms.
I not sure if i should seek legal assistance from a tax attorney, go back to the preparer who omitted the info or just to the IRS in my area and work it out. The sum owed is 6300.

Answer: Sorry but I must disagree with your statement: “tax preparer omitting info”.
First of all your tax preparer filed your taxes with the information you provided at time of filing.
Second you signed the return agreeing that all was true and correct.
You must now file an amended tax return if you choose to do it yourself or take it to the same tax preparer is your choice, but don’t go the preparer and tell them they “omitted” because it was not their fault.

IRS urging citizens to avoid ‘dirty dozen’ tax scams

The Internal Revenue Service recently issued its 2010 “dirty dozen” list of tax scams, including schemes involving return preparer fraud, hiding income offshore and phishing.

A Future