2 returns for same taxpayer in same year ...

Technical topics regarding tax preparation.
#1
Andrew  
Posts:
806
Joined:
21-Nov-2018 5:00pm
Location:
CA
I've never encountered this. By the end of 2020, my clients, a longtime married couple, received an IRS notice that about 3K of their 2019 overpayment had been applied to ... a 2018 tax return. Their 2018 tax return was filed MFJ in April of 2019 and had no balance due. IRS told me that In June of 2019, another 2018 return was filed under the husband's name only and filed as single. The IRS accepted this new 2018 return with single filing status which had a 3K balance due, processed it and took the 3K in overpayment from my clients' 2019 joint return, and applied it to the 2018 return with single filing status.

In January 2021, I filed an identity theft affidavit. As of today, an IRS agent told me that there has been no development except that the affidavit was processed.

I can't even begin to understand how the IRS can accept 2 returns with the same soc sec number for the same year. The husband is the spouse on MFJ return. I'm sure you've had returns rejected because a kid claimed themselves ... So how can the 2nd 2018 return pass the IRS system?

This is outright scary that the IRS took the overpayment from a 2019 MFS return and applied it a second 2018 return which had a different filing status. I'm hesitant to tell me client to pay their 2021 estimates. Is this a case for the taxpayer advocate?
 

Return to Taxation



Who is online

Users browsing this forum: AlexCPA, Google [Bot] and 56 guests

cron