This is a new one for me

[Patti in Upstate NY]

One of my clients called earlier today.  Her Mom passed away in 2017 and  she (daughter)  was the one who gathered all the tax info to deliver to their preparer because her Dad never did paperwork and at 85,  wasn't about to start.     She said there were a few questions she was able to answer and all was well.    Until the refund check came payable to "Karen Smith" which is her first name but not her last name.    For the record?  Neither name is even real.  Confidentiality and all that. 

She called the preparer who said "we'll fix the file going forward but just cash the check and give the money to your Dad."

He's not her Dad.  He's her stepfather and the name on the check is not a name she's ever been known by.  It's her first name and her stepfather's surname.   She wasn't willing to endorse.  Thank you - I have a client with integrity...........Who knew?

The preparer is asking for a POA to be able to discuss with IRS which I told her was okay for Dad (Stepdad) to sign.  I also vented and told her how useless it was to check the box to allow the preparer to discuss the return.

But my software is relentless.  If not a surviving spouse claiming the refund then I have to jump through all kinds of hoops to make it happen.  Not ATX.  I use Lacerte.

How and why did IRS issue a refund to a person who isn't real?  I mean.....she's real.  She's been his "daughter" for 50 years but they never shared a name.  The preparer never asked for her SSN.  I can't continue without it.

I told her to review the copy of the return and specifically, the 1310.

 

Just venting..................:)

 

 

 

[Evan S. Golar]

This scenario doesn't make sense.

What names were used on the head of the tax return, and who signed the e-file authorization forms for the preparer to e-file, if the return was e-filed?

So what I'm asking is HOW did the IRS know to issue a refund to a fake name?

[Jack from Ohio]

This does not sound like your problem to correct.  DON'T get in the middle of this.  Send her to the "professional" that did the return.  RUN AWAY.  There is more here than she is telling you.

RUN FAST!!

[JohnH]

Jack is right on target.  There's more to this, and you're buying a problem by getting involved at any level. Keep pushing her back to the original preparer to explain and correct. That's what they were paid to do. Speculation is just adding to the confusion.   

[Catherine]

I'll chime in too - there is something else going on.  Think LONG and HARD before getting involved.  If you decide yes, get a retainer up front.

[grandmabee]

I am leaning the other direction.  She needs your help.  Tell her to run from the OTHER preparer.  Who tells someone to sign a IRS check if it is not your refund or name.

Also I would not give the other preparer a POA.

[SaraEA]

Instead of a shady relative or careless preparer, it could actually be an IRS error.  I've seen several in the cases of decedents.  In the last couple of weeks a widower came in with a refund check made out to his deceased spouse.  I told him to call the IRS, which told him it was the preparer's error.  Um, the return is clearly marked with the correct spouse's date of death, and since the return was efiled I doubt the computer mixed up the names.  Maybe these returns have to be handled by real people, who no longer seem to have adequate training.

If a joint return was filed, the surviving spouse does not need a 1310.  If there was one, then I'd be suspicious.  In that case, maybe the preparer never did this before and not only filed one but filled it out wrong.  It definitely requires a SS#, though, and one would think IRS matches name and number with the SSA just like they do with any return before accepting it.  Best thing to do is for the client to call IRS and see what happened and how it can be corrected.

[jklcpa]

This is a reach - Does the daughter have a POA for the dad?  Is it possible that the preparer entered the daughter's name and address on dad's return as the mailing address and the check came through with % for "in care of"?

[Evan S. Golar]

That can't be possible if a MFJ return was filed. Even if that did occur, the check should still be made payable to the taxpayers named on the return.

[Jack from Ohio]

On 4/23/2018 at 10:00 PM, Jack from Ohio said:

This does not sound like your problem to correct.  DON'T get in the middle of this.  Send her to the "professional" that did the return.  RUN AWAY.  There is more here than she is telling you.

RUN FAST!!

My advice is still the same.

[Abby Normal]

This is why I always push for direct deposit.

[Roberts]

If mom died in 2017, they would have filed a joint return this year. Why were they in any way attempting to generate a check in the name of the daughter?

None of this makes any sense - sorry.

I agree that the Authorization check box needs to be for multiple years. Limiting it to one calendar year is idiotic IMO and just adds to the burden.

[Patti in Upstate NY]

You guys are the best.  

It is not my problem and my client knows that.  I haven't been asked to solve it nor will I offer to.  Not unless I'm hired.

She called because her stepdad received a paper check at his address with the wrong name on it (not "in care of") and the preparer was rather rude to her.   He said "I've done your parent's taxes for 25 years and never had a problem until now.  Just cash the damn check and give him the money.  It's not like it's income to you."   She was offended.  So was I.   That's not how I do business.

I've known the family for a very long time, long enough that I went to the Mom's funeral last year.  There may be snakes  but not the stepdad.  And not the daughter.

One of the reasons I follow this board is to see what you all see in your offices.   It's always helped me to read about some crazy thing you've never had happen.  I learn from that.  From you.   For me - this was one of those things.

Take a break but don't go away.    I appreciate all of you. 

 

[Max W]

Just for curiosity, I would ask to see a copy of the return in question.  The preparer could of put in "Karen's" name instead of her mom's. He could also have entered the father as the deceased.   The combination of the two errors would have produced the check. 

Another possibility, Karen signed the return as a fiduciary on form 56.

[Abby Normal]

The IRS only checks that last name on the return (only the first 4 letters actually) so you can put any first name on a return that you want. I'm guessing return was filed under mom's Social Security number and last name but daughters first name. Sounds like a horrible preparer.