Discussion:How Correct Incorrect Stimulus Payment
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Discussion Forum Index --> Tax Questions --> How Correct Incorrect Stimulus Payment
| 8 May 2008 | |
| Anybody know who to talk to concerning an incorrect rebate? I know that my client can wait until next year and "fix it" at that time, but would rather not wait that long. I have looked at the IRS website and cannot find any place that will take a question about the accuracy of the rebate.
Thanks! | |
| May 8, 2008 | |
| Check the FAQ sections, very helpful. Answered two off the wall questions from clients.... | |
| 9 May 2008 | |
| Thanks JR1 - I looked at those. Did not answer my specific question. This is a funny case, because the letter from IRS indicated that the couple did not have any children, yet they have one child that we have claimed on the tax return for the last five years. The child's social security number should not be a problem, because the client e-files each year and there has never been a problem with that.
I wonder how many other similar mistakes IRS will make concerning the stimulus payments. | |
Seaside CPA (talk|edits) said: | 9 May 2008 |
| Is the child a "qualified" child? Someone just came to me that filed their own return, and was not allowed the child tax credit because the IRS said the social security number they entered was for a child that was over 17. They had entered the incorrect social security number. This, in effect, also reduced the amount of the rebate they were to receive. Double check the social security number of the child on the tax return. | |
| 9 May 2008 | |
| Mig, if the child is 17 or older then there is no stimulus payment for the child. Not sure if this is the case, but the most obvious question to ask. | |
| 9 May 2008 | |
| Thanks both Seaside CPA and Fsteincpa - The child is five years old and as I noted the SSN has been accepted by IRS e-file each year. I think I will try the preparer hotline and see if someone will at least talk to me about this. | |
| 10 May 2008 | |
| Did not get a chance to call on Friday. Will let you know Monday. | |
| 12 May 2008 | |
| I got a sort of answer from the IRS Practitioner hotline concerning how to correct an incorrect stimulus payment. However, I think it is probably no answer. They told me that I should do a 2848 (Power of Attorney) and then check back and see if anything was wrong with the 2007 return or the SSN for the child. The problem is that I have checked both of these and nothing was wrong. They also said that there will be a chance to correct it on the 2008 return. I think that is what IRS will end up telling everybody with this type of problem.
Your Government Working For You!!! | |
| 12 May 2008 | |
| I just got a call from a taxpayer for the same thing (child is 14). Entitled to $761, received $461.
go figure. | |
| 14 May 2008 | |
| IRS website listed all the dates for rebate payments. Many have not received by the promised dates, anyone experience that too? Just wondering if you have any luck contacting IRS on this matter - I'm hesitant to do that right now, thought I give it another week after the promised date. | |
| 14 May 2008 | |
| I have had people complain they are behind as well.
Most glaring (so far) is SS# ended in 11 and had direct deposit so the rebate should have transmitted "no later then (and received by the end of the day of) May 2." I hope this isn't widespread because between emails and calls I already spent at least an hour on just this one client. Across the board it would be a problem. | |
| May 14, 2008 | |
| Sending an email to all clients and putting in June Newsletter, something to the effect of: There are errors and will be errors, for no good reasons other than that this was slapped together in a hurry. There is no provision for any correction. What you get is what you get. This is an ADVANCE payment on 2008 tho'. So if you got too much, you keep it. If you got too little, we sort it out on 2008 filing. Keep the IRS notice of the refund amount in the tax file, I'll need it next spring. | |
Death&Taxes (talk|edits) said: | 14 May 2008 |
| Excellent method, JR! I have yet to have a call but if this happens, this is exactly the line I will take. I wonder if Past7258 will bill for that time, or for those missing an exemption, a few inquires might mean half that $300 will go out as an additional professional fee. | |
| 15 May 2008 | |
| I think I've gotten to the bottom of the qualifying child problem. It looks like for individuals whose income caused a total phaseout on the child tax credit on the 2007 return, the IRS is ignoring the fact that they have qualifying children for the stimulus package. For example, individual has an AGI of $160K and two kids. On 2007 return, they get 0 child tax credit since income is over $149K. However, according to my understanding of the stimulus package, they should have still been eligible to get the $600 child stimulus amount--$1800 total original amount, reduced by 5% of AGI over $150K or $500 for a total of $1300. But, in actuality, this client only got $700.
Anyone else have a similar situation? | |
Death&Taxes (talk|edits) said: | 15 May 2008 |
| Mr. Smith is probably correct, and that is the point of 'reconciling' next year. The rule is rather simple: if we gave you too much, keep it; if we gave you too little, we will give you the balance now with your return.
Is this rebate a boondoggle or what? Makes the telephone refund seem like a well-oiled program. | |
| 15 May 2008 | |
| Asmith, that makes perfect sense and my client fits the scenario you describe to a T. Well, they only have one child but everything else fits. I'll bet that is it. | |
| 15 May 2008 | |
| I have received calls with the same "woe is me" comment. People spent the money before it was in their bank accounts. They had ideas of where they would spend their rebates and there is no method to the madness. Clients ask if I WILL CALL IRS and ask them...NOT....your simple 1040 I charged 100.00 for...I am NOT going to call IRS, file a POA and ask where is your rebate?
Got a lovely client that did NOT want to give me POA, wanted to get his 1040 transcript by himself for 2005 to close on a home. Gave him the form and the fax number for IRS. I prepared his 2006 and 2007 returns, he now wants me to find out why he hasn't received his transcript for 2005 in the mail yet and why his stimulus payment has not arrived yet. He looked at IRS website and it should have been DD last week, still no $$$$. Now, for a client I charge 100.00 a year to file a 1040 with a Sch A wants me to stay on the phone with him sitting in the office to find out where a stinking 300.00 or 600.00 rebate is and why it has not arrived yet and why on earth he has not received in the mail yet a transcript is beyond me. Anyone charging for these people who want additional services to find out why the govt messed up? 3 calls this week alone!!! | |
| 15 May 2008 | |
| Why not tell them, it will cost more for you to find out where the stimulus payment is, than what they would receive. The best bet is to wait unitl they file their 2008 tax return. | |
| 15 May 2008 | |
| Makes sense to REASONABLE people...thanks!!
To these who think they are somehow ENTITLED to this money and have spent it they don't understand any logic at all.... Why can't we all just fix it on the 2008 return and forget the b**s*it. Cause they think we have nothing better to do than hold their hands and fix their money problems? Wow I am getting cranky...where is my blender? hehehehehehehe | |
| May 15, 2008 | |
| Just don't play. Tell them there is NO provision for corrections other than filing the 08 return, and they'll get all that they're entitled to. Nothing more to say. | |
| 15 May 2008 | |
| From the IRS website: "Phase Out: The stimulus payment –– both the basic component and the additional funds for qualifying children –– begins to phase out for individuals with adjusted gross incomes (AGI) over $75,000 and married couples who file a joint return with AGI over $150,000. The combined payment is reduced by 5 percent of the income above the AGI thresholds."
So if the AGI is too high to get a stimulus for working, it's too high to get it for the children too. | |
| 15 May 2008 | |
| Just got an e-mail from my tax software provider. Seems there will be a fix on the qualifying child issue:
Electronically filed returns with Stimulus Rebates As you may be aware, there are several issues that taxpayers nationwide are experiencing related to the economic stimulus rebate. A very small percentage of electronically filed returns transmitted by ProSystem fx tax software have resulted in an initial stimulus rebate check being issued for an amount less than the calculated rebate. We estimate that less than one-half of one percent of returns using our software were affected. Neither you nor your clients need to take any action. The IRS will address this issue, and will automatically send to taxpayers the remainder of the rebate they are due. Again, issue resolution is automatic and the IRS will send the remainder of the rebate by check directly to any taxpayers affected. Only electronically filed returns were impacted. This occurred in some circumstances when qualified dependents were claimed on Form 1040 or Form 1040A but no Child Tax Credit or Additional Child Tax Credit was claimed in the return. | |
Death&Taxes (talk|edits) said: | 15 May 2008 |
| Proves that when big money, like CCH etc, complains, IRS acts.
Personally I agree with everything Sandy says; now maybe JR will join her on the ticket this year. | |
| 16 May 2008 | |
| It appears IRS is finally "fessing up". A couple of articles this morning about incorrect stimulus payments for those with qualifying children who were not eligible for the child tax credit due to income limitations. The NATP TAXPRO Weekly indicated that IRS was blaming a programming error, which is consistent with comments above about putting the program together very quickly. Another report by the Associated Press indicated that corrections would be made this year and the additional checks would be mailed in July. Another round of client phone calls coming up! | |
Death&Taxes (talk|edits) said: | 16 May 2008 |
| Kathyt gives the IRS reference in the other thread on this page: http://www.irs.gov/newsroom/article/0,,id=182735,00.html
Seems to have affected only certain software according to them. | |
| 16 May 2008 | |
| article this morning said child credit error was from two programs.
From above it looks like one was prosystem fx. any idea what the other was? | |
| 16 May 2008 | |
| To advise....Sandy is NOT nekkid at the blender....hehehehe
Front page of our paper today; IRS and tax preparer CONFUSION.... I don't think I WAS CONFUSED....this was Congress acting too late and then IRS having to act too quickly. I am screening my phone calls at my office...hmph!!! :) | |
| 16 May 2008 | |
| maybe not at the blender ms sandy, but has natalie told you about my mind? <VEG> | |
| 16 May 2008 | |
| HEHEHEHEHE; well what can I say?
Mr. Fred is indeed in rare form but he makes me laugh and some days it is great to laugh!!!!
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| 26 May 2008 | |
| Bean, you asked about the deadline for the stimulus payments. I know that alot of people that were expecting it to be direct deposit are going to have to wait for a paper check due to the fact that their original refund was split into to different accounts. IRS is not sure where it should go so they send a check. If that's the case they will have to wait for the mailed check. | |
| 26 May 2008 | |
| Mig999, not sure that it is really a programming error. If your software did not check the box on page one of the 1040 indicating that the child was eligible for the child tax credit, the Service's computers were programmed to automatically supress the rebate for that child. | |
