Message Font: Serif | Sans-Serif
No. of Recommendations: 2
I put my wife's SS# on line 31b of the 1040 instead of my ex-wife's SS# for court ordered alimony. The IRS picked this up and sent me a letter June 11, 2007 disallowing the alimony payment. I called the IRS about how to correct this error and was told to send a complete copy of our tax return to the Richmond IRS office with a letter of explanation. We did this and the return card says it was received June 21st.

Now we have received a second IRS letter dated June 24th stating that (a) We failed to pay our taxes on time (though the return was mailed by certified mail on April 11 and received by them on April 14th), and (be) we owed for the entire additional tax on the IRA plus penalty and interest. There was no acknowledgment of our letter or the Waver Explanation or that what we paid wasn't enough or that the additional tax owed was in fact listed on line 60 of the 1040 so included in the calculations. They said we owed the whole thing, apparently again!

So I called the IRS again. After considerable consideration, the man I was talking to said he thought we should wait to hear a reply to our SS# dis-allowance correction, i.e. we should do nothing now. He thought the SS# error was the cause of the problem. He confirmed that our check to the Treasury had, indeed, been received.

Question: Is this last advice sound that we should wait for a response to the SS# screwup?

It's hard to say without seeing the notices.

The SSN problem, if uncorrected, would result in recalculated tax (without the alimony deduction), and you'd get a notice showing the tax as reported and as corrected, the payments credited, and the balance due. Ignore P&I. It would be coincidence to the nth degree if that amount was exactly the same as the line 60 penalty.

I'm unclear as to whether you sent a separate request for abatement of the 50% penalty or attached it to the return. If you sent it with the return there's a good chance nobody's ever going to look at it. If you sent it separately it's too soon to expect a response.

To keep yourself from going totally bonkers, keep the two issues totally separate in your mind. You really have two separate cases going on the one return, and they will have separate dispositions.

So, all that said, I'd wait for the next communication. In the meantime, look at the back of the canceled check to make sure it was properly credited.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.