IRS bill - Shared responsibility payment for 2016

[ILLMAS]

I am confused, TP owed $1,593 of SRP + $5,000 of SE Tax totaling $6,593, he had withholdings of $1K and made $4K in estimated tax payment leaving him with a balance of $593 which was paid by April 15, 2017, today he received a SRP bill for $1,593 which has been paid already, I am miss learning something?  Basically my client is paying twice  he send the payment, anyone else believe the letter was sent in error?

[mriina]

No, he still owes $1,593.  Tax = 6,593, less 5,000 in tax payments would still be $1,593.

[Roberts]

I hope that's a joke.

 

Was the $593 check cashed by the IRS?

[jklcpa]

32 minutes ago, ILLMAS said:

leaving him with a balance of $593 which was paid by April 15, 2017, today he received a SRP bill for $1,593 which has been paid already

I haven't seen anything like that. I think you have a typo in that balance due. Didn't the return show a balance due of $1,593 that was paid in April?  It sounds like that April payment of the balance due wasn't applied properly. If you e-filed the return and sent the client off with the 1040-V, are you absolutely sure that the client paid it?  Have him get a copy of the cancelled check as proof of payment when you or he answers the letter.  

[ILLMAS]

Yes, typo $5k, not $4K, sorry.

[Jack from Ohio]

Ask him to provide copies of the front and back of all payments (including estimates) that he made for tax year 2016.  My gut tells me he is leaving out very relevant facts.

[ILLMAS]

I am going to call the IRS tomorrow.

[jklcpa]

Agree with Jack that something doesn't make sense with this and that you're probably going to need proof of all the payments made. 

[Tax Prep by Deb]

Everyone of my clients who owed the penalty and paid it by the due date have received a bill.  You have to call and have them move the payment over.  A royal mess!

[ILLMAS]

39 minutes ago, Tax Prep by Deb said:

Everyone of my clients who owed the penalty and paid it by the due date have received a bill.  You have to call and have them move the payment over.  A royal mess!

That's what I figured, thanks

[jklcpa]

2 hours ago, Tax Prep by Deb said:

Everyone of my clients who owed the penalty and paid it by the due date have received a bill.  You have to call and have them move the payment over.  A royal mess! 

Does this include clients that ended up with returns showing a net refund too?   I only had one client this season that actually owed the penalty (penalty was $290), and that return had a net refund of about $1000 that was refunded by direct deposit 9 days later.  I haven't heard from him about receiving any notice of balance due. 

[Tax Prep by Deb]

Only ones seem to be those who owed.  I have not heard from anyone with a refund.

[ILLMAS]

Just got of the phone with the IRS, everything is fine, agent said notices are generated automatically etc....