The IRS is Evil

Discussion in 'Politics, Religion, Social Issues' started by squeeks, Sep 23, 2010.

  1. squeeks macrumors 68040

    squeeks

    Joined:
    Jun 19, 2007
    Location:
    Florida
    #1
    I bought my first home in March, so i qualified for the First Time Home Buyer program credit. I had a CPA file my taxes and i received my refund. In July i got a letter from the IRS saying that they needed additional information to confirm my new address was the house I claimed to have bought.

    I sent them a copy of my new Drivers License and my bank statement with my new address on it. Which was 2 of the 4 items they wanted, they also requested my auto registration, which didn’t have my new address on it, and a pay stub which my employer hadn’t changed yet. I tried faxing these items which is what they requested but the fax wouldn’t go though, so i mailed them.

    About 3 weeks later i got a letter saying they were reviewing my documents. about 3 weeks later i was told they were still reviewing my documents and would receive a reply in 30 days.

    Today

    I get a letter saying they are modifying my tax return and I need to pay $8161 dollars (the $8000 dollar credit and $161 in interest) WTF???

    Anyway now that i have all 4 things they said i could possibly use (only 2 were required) I will send them all 4 along with a copy of my HUD statement for the purchase.

    I will also be contacting my CPA tomorrow to see if they can help me figure out why it was denied. The only thing i can think of is my name is the same as my fathers and we both lived in the same house prior to my moving out in March and they think I owned that house...

    This is quite frustrating.
     
  2. LethalWolfe macrumors G3

    LethalWolfe

    Joined:
    Jan 11, 2002
    Location:
    Los Angeles
    #2
    Are you sure the letter says that's what your owe, or that's what you are getting as the credit plus interest?


    Lethal
     
  3. squeeks thread starter macrumors 68040

    squeeks

    Joined:
    Jun 19, 2007
    Location:
    Florida
    #3
    I'm sure. It says "The amount you owe is $8161.00. This amount may include tax, intrest, blah blah blah..."

    I got the $8k home buyer credit with my tax return.

    But I believe after talking to them, they think I own my parents house because my dad and I have the same name. You would think they would go by SSN but apparently not.
     
  4. Rodimus Prime macrumors G4

    Rodimus Prime

    Joined:
    Oct 9, 2006
    #4
    It sounds like the system is glitching because of the same name. More than likely with a few phone calls you can get them to over ride it and correct it.

    They go by both but remember the items you sent copies in of do not contain your SSN so they go by name. From my understanding of data bases it sounds like it is using a combination key to match things up. The combo key happens to be your name and address.
    As you pointed out your dad and you shared them for a while so it messed up the system. So when it runs the check it see your dad and you do not qualify.

    Got to love computer errors. It was a system that was design to handle the fact that a lot of supporting documentation does not have SSN on it but it fails in your case.

    Hope that helps. You CPA should be able to help you as they would know the right people to contact to get them to fix the glitch.
     
  5. squeeks thread starter macrumors 68040

    squeeks

    Joined:
    Jun 19, 2007
    Location:
    Florida
    #5
    IDK, cause right on top of the letter i got it has "Tax Id Number" and has my SSN listed. Still i'm going to have to track down the paperwork from closing on my house and send them the final signed copies of the contract.
     
  6. Tomorrow macrumors 604

    Tomorrow

    Joined:
    Mar 2, 2008
    Location:
    Always a day away
    #6
    I read a news story a couple of weeks ago that thousands of people who took the credit were going to have to pay it back. Hopefully in your case it's just mistaken identification and they don't stick it to you.
     
  7. obeygiant macrumors 68040

    obeygiant

    Joined:
    Jan 14, 2002
    Location:
    totally cool
    #7
    Get a Tax Attorney. You may have to pay him $2000, but at least you can stick it to the IRS for $8100.


    Where is Mcrain?
     
  8. Shivetya macrumors 65816

    Joined:
    Jan 16, 2008
  9. scottness macrumors 65816

    scottness

    Joined:
    Mar 18, 2009
    Location:
    Room 101
    #9
    Yeah, get a better CPA or hire a tax attorney. You should be ok.
     
  10. Sdashiki macrumors 68040

    Sdashiki

    Joined:
    Aug 11, 2005
    Location:
    Behind the lens
    #10
    Were you ELIGIBLE for the $8k?

    THOSE are the people having to pay it back. Whether scammers exist, and they do, some people didn't actually qualify but everyone in the process (of making money off your home sale) said you did.
     
  11. mcrain macrumors 68000

    mcrain

    Joined:
    Feb 8, 2002
    Location:
    Illinois
    #11
    You probably don't need a tax attorney yet. Just be patient, be nice, and provide the information they request in a timely manner. The IRS is not being evil for requiring you to document and support your claim for an $8k credit. They are doing what they can to minimize fraud so your taxes don't up down the road.

    If you have specific questions, feel free to PM me.
     
  12. squeeks thread starter macrumors 68040

    squeeks

    Joined:
    Jun 19, 2007
    Location:
    Florida
    #12
    The girl i talked to at the IRS office was very nice and very helpful.

    The reason i call them evil, is, I already sent them all of this information they asked for several weeks ago. They still choose to deny my tax credit. Which yes i was eligible for and did file it on my 2009 taxes. Like i said i had my taxes done by a CPA firm who we've used for years.

    What they requested was proof that I sold my previous home...being that this is the first home ive ever owned, that is going to be a little hard to provide.

    I provided them with the property apraiser records for both my property and my parents property to clearly show them that i do not own both houses.

    Hopefully that will take care of this.
     

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