But I now have an even better reason. Those xxxxx just sent me a letter. Sorry I didn't capitalize Bxxxxxx. This cycle I have a good reason. Better than them taking all my hard earned cash.

So this letter says they "misapplied" the payment sent with our 1040, and they're asking for another check. Really. For less than the first cycle. I don't care, they're still bxxxs. OK, and they suck. So they say they Misapplied my payment, and want me to send another check. Not gonna happen.

OK, did I say I hate them? Asking me for another check (this cycle for less than they got the first time. MY wife, as always is nicer than I am, but she says she isn't sending them any more. So I guess my best course of action is to ignore their letter(s). They did send one to both of us. Gawd I hate them.

This message has been edited. Last edited by: parabellum,

What in the heck do they mean they misapplied?

Have you checked their website to insure this is legit? Misapplied is setting off alarm scammer bells for me.

Rings the scam bell for me as well. How did the letter say payment was to be made?

Don't worry, there will soon be a new simplified 1040:

---

Write down how much you made: $______________

Send it in!

---

I sent in my paperwork and a payment for $2220 earlier this month. They sent me a letter yesterday saying they re-did my taxes and I owe $45 more. If they're going to do my taxes for me and charge me what they say, why don't they just do my taxes and send me a bill every year??????

I have nothing nice to say about the IRS! We've been screwed over several times in the last few years. As the tax lawyer warned us, don't expect them to apply discretion in our favor. They didn't even though we were well within the boundaries of the rules.

Ignoring their letters might not be the best idea though. Maybe give them a call or talk to a tax pro for help.

Sounds like a scam. you paid what was owed.
Internal accounting is not your problem.

quote:

So this letter says they "misapplied" the payment sent with our 1040, and they're asking for another check.

Has that checked cleared your bank?

Could be legit, there is such a thing as a misapplied payment letter - CP60 Notice

Their advice is for you to call them, 800 829 8374 to discuss and if they cashed your check, have a copy of that ready to send.

Link

Both you and your wife got letters?
Did you file separately? If not, that raises a red flag for a scam.

More on the IRS:
I Messed Up My Taxes. How Long Does the IRS Have to Find Me?
You’ve filed your taxes, but you’re feeling anxious.

What about that income you forgot, or “forgot”? The deduction you shouldn’t have taken, or past returns you never filed at all?

Now you’re worried about the long arm of the Internal Revenue Service. How much time does the agency have to find you before the statute of limitations expires?

The short answer is: three years, six years, 10 years or forever. Depending on the circumstances, you may have less time to sweat than you think—or much more. For example, the statute of limitations doesn’t start to run until a taxpayer actually files a return, so non-filers are never off the hook.

You’ll also need to decide how to deal with your error. Frank Agostino, a former IRS senior trial attorney now in private practice, has advice on this score that may seem surprising: Often the best approach is not to correct past mistakes, but instead to stop making them in the future.

“If the IRS hasn’t found you for a long time, the odds are they won’t. But correcting a past error can bring unwelcome attention, so I often tell people just to correct things going forward,” he says.

To help chart your course, here’s information about statutes of limitations—the amount of time that has to pass before you are in the clear—for individual tax filers. Also check laws for state taxes, which vary greatly.

Three years
Three years is the normal period the IRS has to question information on individual returns. The statute begins to run on the April due date—typically April 15—for taxpayers who filed by then and from the October due date—typically Oct. 15—for taxpayers with a six-month filing extension.

These dates apply even if someone files before the deadlines. For a taxpayer who filed on March 1 of this year, for example, the clock starts ticking on April 15.

The IRS has until the three-year deadline to query and audit, and often the taxpayer can appeal results within the agency.



Many IRS queries during this three-year period are generated by computer matching of taxpayer returns with data on W-2 or 1099 forms filed by employers, financial firms and others. These letters typically go out a year to 18 months after the return was filed, says Agostino.

Other queries arise when IRS computers spot deviations from norms, such as a return with unusually large business losses on Schedules C or E. Often these issues are more complicated and the agency needs time to investigate them, so it may ask the filer to consent to extend the deadline. If the filer refuses, the IRS often issues a deficiency notice assuming the worst case for the filer.

E. Martin Davidoff, who heads the tax controversy practices at Prager Metis CPAs and Davidoff Tax Law, frequently advises clients not to consent to an extension, especially if the auditor is aggressive or nonresponsive.

“Such auditors often miss critical issues, and it will be to the client’s advantage to fight the case in Tax Court,” he says. This requires filing a Tax Court petition, but doing so often bounces the case to an IRS appeals office or lawyers who will conclude it fairly, says Davidoff—and few cases go to trial.

Six years
The IRS has up to six years to find taxpayers who omitted more than 25% of their income. As with the three-year statute, it typically begins with either the April due date or the October due date.

The 25% threshold applies to gross income from all sources. If a filer neglects to report income from a capital gain and a side hustle but the total comes to 20% of gross income, then the agency likely has three years instead of six to find it.

How does the IRS discover this income? Perhaps there’s an information report from a third party, or an agent analyzes bank deposits. Agostino says many cases arise when agents check Suspicious Activity Reports filed by banks that track large cash deposits and withdrawals by customers.

10 years—or more
When it’s established that a taxpayer owes the IRS money, the agency has 10 years to collect it, including through seizures of wages or bank accounts, or the debt effectively ceases to exist. But the clock can pause for several reasons, such as if the taxpayer asks for an “offer in compromise” to reduce the amount owed.

Warning: Not hearing from the IRS for years doesn’t mean you won’t; the agency sometimes writes taxpayers in year 8 or later after a long silence. Both Davidoff and Agostino often advise taxpayers in this position not to take actions that could “wake up” the agency, such as asking for an offer in compromise.

The IRS can also pursue a federal court order extending the 10-year limit by 20 years from the date of the order. Such requests are rarely for amounts less than $150,000, says Agostino.

Forever
In three areas, there’s no statute of limitations. As noted above, the statute doesn’t begin to run until a return is filed. In addition, there’s no deadline for many foreign-income items, in part because securing cooperation from foreign authorities is often difficult or slow.

Finally and most dire, there’s no statute of limitations for civil tax fraud. However, proving fraud can be hard because the IRS must show the taxpayer’s evasion was willful.

SHARE YOUR THOUGHTS
Have you had a tax problem? How did you resolve it? Join the conversation below.

What’s proof of willfulness? If a filer lies to his tax preparer and the preparer gives evidence, that could be proof. So could testimony by an ex-spouse or disgruntled employee who knew details of the fraud.

The IRS is also constrained. It expects more than 160 million individual returns for 2023, yet it has been able to bring fewer than 2,000 criminal tax cases a year recently. In practice, say specialists, the agency seldom goes back more than six years when pursuing fraud cases.

But not always: Agostino was involved in a case about a taxpayer’s non-filing of gift-tax returns for transfers to family members that concluded in 2015. He says the IRS pursued the non-filing back to 1968.


link; https://www.wsj.com/personal-f...ns-6c3ab7f5?mod=hp_l

I paid my 2023 Oregon state tax via a check in early April last year. Later in the summer I got a letter from the state DOR saying I owed them the full amount. I called them and a gal there looked it up. Turns out they somehow applied my payment to the 2024 taxes. Clerical error. I wouldn't have thought that was even possible, but I guess it is.

quote:

Originally posted by WaterburyBob:
Both you and your wife got letters?
Did you file separately? If not, that raises a red flag for a scam.

This isn’t all that uncommon actually. Depending esoteric internal rules that I haven’t figured out, the IRS will send certain letters to both people on a joint return individually, even if they both have the same address in record. It has happened to a couple people I know this season. It also happened to confuse the crap out of all of them as well.

The IRS has never been perfect, but they have definitely been off their game since COVID. The number of letters I’ve seen because they screwed up or lost something internally is notably higher than I remember in the past. That could just be my perception though.

- Bret

quote:

Their advice is for you to call them, 800 829 8374 to discuss and if they cashed your check, have a copy of that ready to send.

^^^^^^^^^^^
Two or three hour hold and then answered by someone who suggests submitting your question in writing.

Two words: Fair Tax

quote:

Originally posted by rainmaker5505:

Two words: Fair Tax

Yes, please.

quote:

If they're going to do my taxes for me and charge me what they say, why don't they just do my taxes and send me a bill every year??????

You do know that is an option right?

Our system could be much better. I wouldn't ignore them, though. Would be nice if they automated the whole system and just sent a bill or a check at the end of the year.