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This is a $207 error in "estimated taxes paid" when filing vs the sum of the checks actually sent. The error was for the Q4 (in 2011) payment which is why it came to light while reviewing taxes for 2011.

In fact, they are requesting documentation for a tax credit for insulation installed during a 2011 remodel, so the tax filing is under review as I write, as far as I can tell.

My guess is that I owe them the $207 and $7.25 (3% for 14 months) and a corrected 1040 (1040X) and that it would make sense to include it with the documentation for the tax credit. Am I way of base?

You're so far off base even I could pick you off, and I throw like my late Aunt Minnie. Today.

I can't figure out whether we're talking about tax year 2010, which you filed in 2011, or tax year 2011, which you may have already filed, but I doubt that they'd be questioning a nonrefundable credit at this point of processing a 2011 return.

I suspect we're talking about tax year 2010. If you go back and check your records you'll find that the overstatement of estimated tax payments on your return has long-ago been resolved.

If I'm wrong and we really are talking about tax year 2011, your return has not yet been fully processed. When it is the estimated tax discrepancy will be discovered, and they'll bill you. As long as you pay it by 4/17/2012 there will be no penalty or interest.

In either event, don't even think about filing an amended return at this point. Let the dust settle from the current inquiry, and then see where you are.

Rule Your Retirement Home Fool
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