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Help! I received a letter from the IRS last night claiming that I under-reported my income by $12,830 in 2011. They're now demanding that I pay a significant amount in taxes, interest, and penalties against that $12,830. The problem is, I didn't under report. I have my W-2s showing that the income I claimed is the income I received, and I have deposit records for all of my payroll checks (but those, of course, would not necessarily PROVE anything, as they are less taxes and insurance payments). What I do NOT have is a complete record of pay stubs. Somewhere in the move to the new house those documents got lost in the shuffle.
The paperwork says that the discrepancy is specific to income from one of the two employers I had that year. Would a notarized letter from my payroll department listing my total gross income and tax deductions for 2011 suffice to prove that any additional reporting submitted to the IRS is false? My assumption is that the payroll department either applied somebody else's payments to my SSN or the payroll company that processes our checks screwed up.
I bet someone is reporting income under your social security number.
I bet someone is reporting income under your social security number.
That was my first thought, but the paperwork lists my current employer as the source of the unclaimed income. So if that IS the case (somebody using my SSN), then it was processed by the girl in our payroll department either intentionally or in error.
Help! I received a letter from the IRS last night claiming that I under-reported my income by $12,830 in 2011. They're now demanding that I pay a significant amount in taxes, interest, and penalties against that $12,830. The problem is, I didn't under report. I have my W-2s showing that the income I claimed is the income I received, and I have deposit records for all of my payroll checks (but those, of course, would not necessarily PROVE anything, as they are less taxes and insurance payments). What I do NOT have is a complete record of pay stubs. Somewhere in the move to the new house those documents got lost in the shuffle.
The paperwork says that the discrepancy is specific to income from one of the two employers I had that year. Would a notarized letter from my payroll department listing my total gross income and tax deductions for 2011 suffice to prove that any additional reporting submitted to the IRS is false? My assumption is that the payroll department either applied somebody else's payments to my SSN or the payroll company that processes our checks screwed up.
It sounds like what you got was a letter called a CP2000 (should show in the top right corner of the front page). This letter is electronically generated and reports a discrepancy between what the IRS picked up from the return you filed and what was electronically reported to them from other sources.
Back a few pages in the letter you should find a table looking section that shows "amount reported" and "amount reported to the IRS" (I forget what the exact phrasing is and I'm not in the office right now). Compare the amounts under "amounts reported" to what you put on your tax return. If they all match you're good to go, if not you need to figure out why there is a discrepancy. Don't start sweating quite yet because, in my experience, about half of these notices are wrong or easily taken care of.
I talked to somebody at the IRS and she confirmed that they received two W-2 forms from my employer. Best guess is that the original payroll company and the replacement payroll company both submitted W-2s to the IRS. In either case, my company said they're going to get a revised W-2 or draft a notarized document from the company legal department that provides the IRS with payroll information confirming that I do not, in fact, have $12,830 in unreported income for 2011. According to the lady on the phone, that should suffice if a W-2 cannot be generated.
Well, good to know that you ended up in the "easy to take care of" half!:lol:
The best one I've had recently was some poor soul who got a 1099-Misc for a little temp work in the amount of $400.00. The IRS managed to misplace the decimal and they got a letter that they had underreported by $39,600.00.
If it had been me, it would've been an underreport by 40K, since 400 dollars you don't have to report...just barely.
It's good to be your own accountant.
Actually, that's not quite right. You are still required to report the income but it isn't subject to SE tax.....that's one of the problems people often have when they are their own accountant
I bet someone is reporting income under your social security number.
Okay, Mr. Picky...you don't have to file.
You tryin' to out-beancount me? Huh? Huh?
OK...I'll give you that one...if it's your only income you don't have to file.
So this is what happens when accountants fight. My pocket protector can beat up your pocket protector.
Careful, my pocket protector is made by Colt:lamo
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