Dependent Name Misspelled on Paper Return

Technical topics regarding tax preparation.
#1
Posts:
1
Joined:
13-Dec-2017 3:58pm
Location:
Tulsa, Oklahoma, USA!!!
Greetings!

We filed a 2017 tax return for a personal client, and did so on paper because efile was not available for them. For one of their dependents, an additional letter was added to the child's last name in error. The child was the only one on the return with that last name, being the progeny of a union several marriages ago. IRS issued a notice disallowing the exemption because of the name spelling (according to the taxpayer). Instead of the taxpayer receiving their anticipated refund, they received a bill.

What is the best way to remedy this situation with IRS? Is an amended return required, or can it be done with a letter of explanation accompanied by supporting documentation?
 

#2
Skatter  
Posts:
319
Joined:
15-Dec-2014 7:47pm
Location:
Boston area
More likely an explanation for the disallowance of the deduction is either an incorrect SSN or some other person having already claimed that dependent.
 

#3
ATSMAN  
Posts:
2094
Joined:
31-May-2014 8:34pm
Location:
MA
One big advantage of e-file is that if there is a SSN/Name mismatch or if a dependent has already been claimed, or a return already filed there is an immediate rejection and it can be rectified. You don't say why e-file was not available?

Every year I must have half a dozen of these situations with separated parents or teenagers filing their own return incorrectly.
 

#4
MEMCPA  
Posts:
58
Joined:
6-May-2014 11:50am
Location:
Tennessee
WekiwaCPA wrote: IRS issued a notice disallowing the exemption because of the name spelling (according to the taxpayer).


Personally, I never act on what a client tells me an IRS notice says. My clients' reading comprehension goes down when a letter is on IRS letterhead.
 

#5
Posts:
6043
Joined:
22-Apr-2014 3:06pm
Location:
WA State
MEMCPA wrote:
WekiwaCPA wrote: IRS issued a notice disallowing the exemption because of the name spelling (according to the taxpayer).


Personally, I never act on what a client tells me an IRS notice says. My clients' reading comprehension goes down when a letter is on IRS letterhead.


Exactly...
My conversation with clients is: Please send me a copy of the notice. If I made an error, I will happily do what needs to be done to resolve it at no cost to you. Without reading exactly what the IRS has provided you, I'm not going to guess as to the proper method of resolving the issue.
~Captcook
 

#6
Frankly  
Moderator
Posts:
2455
Joined:
21-Apr-2014 9:08am
Location:
California
CaptCook wrote:My conversation with clients is: Please send me a copy of the notice.

I think all IRS letters have a line or two about how to provide the missing info, or how to challenge the IRS position - usually provides an address and phone number too.

Without the letter there's really nothing that can be done.
 

#7
makbo  
Posts:
6840
Joined:
23-Apr-2014 3:44pm
Location:
In The Counting House
WekiwaCPA wrote:an additional letter was added to the child's last name in error.

Was it in the initial four characters (assuming name was at least that long?) Most if not all the time, IRS name control only tries to match first four chars of last name.
 


Return to Taxation



Who is online

Users browsing this forum: AlexCPA, Google [Bot], Google Adsense [Bot], Miami88 and 126 guests