How to trigger a refund.

[TaxmannEA]

Our office has a client that died in late 2010. One of our preparers did the final return and the daughter(executor) filed it. Daughter then proceeded to pay a little over $10K in estimated payments for 2011. (She gets a bit confused.) We've been trying to get the IRS to refund the estimated tax that was paid in error. Calls and letters produced no result. A 2011 return was filed showing -0- income and the estimated payments asking for the refund along with a 1310. Still no result. Now the daughter comes in with a notice claiming that a 2014 return was filed and declined due to the TP being deceased and that the account has beeen locked. We're wondering if someone tried to process the 2011 return as a 2014. 

I guess I'm asking if there is anything that can be done to straighten out this mess. The preparer is going to our local field office with a 2848 again, but with a fraud indicator on the account, I don't know how much she will be able to accomplish. Suggestions?

[Max W]

I would try the taxpayer advocate service 877-777-4778.  They will be able to access all the records and find out what happened.

It may take some time, but I wouldn't hesitate requesting a status update, every two or three months, from the person assigned to your case.

 

[Gail in Virginia]

Another option might be available if you plan to attend one of the IRS tax forums.  They will have a case resolution program there where you can talk to someone from TAS face to face.   If you don't resolve this before then, and you plan to attend the forum, that might be an option.

[Jack from Ohio]

Our office has a client that died in late 2010. One of our preparers did the final return and the daughter(executor) filed it. Daughter then proceeded to pay a little over $10K in estimated payments for 2011. (She gets a bit confused.) We've been trying to get the IRS to refund the estimated tax that was paid in error. Calls and letters produced no result. A 2011 return was filed showing -0- income and the estimated payments asking for the refund along with a 1310. Still no result. Now the daughter comes in with a notice claiming that a 2014 return was filed and declined due to the TP being deceased and that the account has beeen locked. We're wondering if someone tried to process the 2011 return as a 2014. 

I guess I'm asking if there is anything that can be done to straighten out this mess. The preparer is going to our local field office with a 2848 again, but with a fraud indicator on the account, I don't know how much she will be able to accomplish. Suggestions?

​Where did she get a notice that a return was rejected for 2014? 

The other possibility is that someone filed a fraudulent return using the decedent's SS# for 2014.

Edited June 4, 2015 by Jack from Ohio

[Max W]

There is another possibility. The ES payments were earmarked for the wrong year, or no year was even indicated.

I don't usually use or recommend the Taxpayer Advocate, but I would in this case as there are too many unknowns and too much red tape

to cut through.

Going to the field office? That would be the last place to go. They would just pass it up the chain, if they don't misplace it, and cause more delay.

I have too many horror stories of clients coming to us after going to a field office and having returns lost, payments misplaced, returns prepared incorrectly, etc.