Discussion:Making Work Pay Credit IRS mistakes

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Discussion Forum Index --> Basic Tax Questions --> Making Work Pay Credit IRS mistakes


Discussion Forum Index --> Tax Questions --> Making Work Pay Credit IRS mistakes

Sw (talk|edits) said:

2010-04-12
Is anyone have problem with the IRS figuring this credit wrong, and sending additional money to client?? Had someone call today was support to receive a refund of $ 181.00 received a check for $ 932.00. He had a w2 of $ 14107.00 and a loss of $ 13316.00 on his farm. ProSeries figure a MWP credit of $ 49.00 but IRS figured it on the $ 14107.00 w2 without regards to the loss. Giving him the entire $ 800.00. This was a new client. If makes me look bad, like I make a mistake. Just need to vent.

Jctmstx (talk|edits) said:

12 April 2010
If you did'nt already warn them, let them know if the IRS catches it later they have to repay the $751.00.

Kevinh5 (talk|edits) said:

12 April 2010
there have been several such discussions here about the IRS giving the credit to those whom we don't think are eligible. I agree with JCT, have the client send the money back with an explanation before 4/15 and there will be no problem.

Sw (talk|edits) said:

2010-04-12
I called the IRS on the first one I knew about. Talked to 4 different people, took 1 hour and they finally agreed with me. I told him it was a mistake and they would probably catch it and bill him. I don't think he wanted to sent it back. He's a new client and kinda like why would he trust me over the "IRS", they should know. But how about all the people who just didn't notice that their refund was more. There is going to be lots of letters and lots of unhappy people.

Kevinh5 (talk|edits) said:

12 April 2010
oh I hate those calls "you made a mistake and the IRS sent us more money, you don't know what you are doing"

Rgtaxservice (talk|edits) said:

12 April 2010
I had one of those. The client had a taxable portion of a scholarship and some minimal wage income. I had the SCH notation on line 7 with the amount of the taxable scholarship. Client received over $1000 more in a refund that I had properly calculated. The IRS didn't take into account a portion of line 7 was the scholarship, this added to the MWP and the EIC.

I spent an hour explaining to the client why I was right and that it was an IRS mistake. After all that she told she had already spent the $1500 and would 'take her chances'.

On a different note, this is also one reason that I think the EIC wage subsidy is out of control. The client received the refund on a Friday and it was gone by Monday. It wasn't to pay rent, utilities, or food because the state pays for that. It was just pissed away.

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