California Help Please - Taxpayer Payment Mistake

[BulldogTom]

This has never happened to me, and I can't get through to the FTB to find out how to correct it.

Taxpayer had a large balance due to the IRS and a small refund from the state of CA. Somehow, they wrote a check for over 7K to the FTB instead of the IRS and mailed it to the FTB. The notice from the IRS for the balance due tipped them off that something was wrong. The client is Russian and speaks very little english. His son was my interpreter. I don't know how this got messed up, as I handed them the payment voucher for the IRS with the tax return when it was completed.

How do I get the money back from FTB? The payment is not attached to any tax return (they did not put a year on the check). I don't think I should file an ammended return, but I don't know of any other way to make a claim for the money.

Any help is appreciated.

Tom

Lodi, CA

[zeke]

Tom - Can't help with CA, but I know one of the hardest things I do is maintain my patience on April 12 as I keep others waiting as I hold Grandma Jones' hand and write her checks & seal her envelopes for her. Sometimes you just gotta.

Zeke

[jainen]

>>How do I get the money back from FTB?<<

Send 'em a letter.

[BulldogTom]

Send 'em a letter.

Just spoke to the FTB and that was what they said. It was sitting there just waiting for the letter to arrive. Fax over a letter and they will send the money back.

Tom

Lodi, CA

[jainen]

>>It was sitting there just waiting for the letter to arrive.<<

That should have been obvious to you from the start, Tom. I mean, you can't expect them to just GUESS that the taxpayer wants his refund.

[BulldogTom]

>>It was sitting there just waiting for the letter to arrive.<<

That should have been obvious to you from the start, Tom. I mean, you can't expect them to just GUESS that the taxpayer wants his refund.

I am aware of that. My real question, which was apparently not worded well, should have said: "Is there a form from the state of CA that I would need to produce for the client in order to request the refund?"

If the payment was applied to 2007 or some other year, I would assume that an amended return might be needed, and if it was not applied to any year, a specific form might be needed. I was looking for such a form and not finding it, and not knowing what year the payment might have been applied to without speaking to the FTB, I was confused. I tried calling twice but the state was busy and told me each time to call back and hung up. Hence, my poorly worded question to this board asking if someone might know the proper procedure for making the request.

Thanks for your help in pointing out that a letter would suffice.

Tom

Lodi, CA

[Margaret CPA in OH]

Please share the phone number you used to get through. I've tried several times and have sent 2 unanswered emails regarding my rental loss issue for a nonresident. Thanks in advance!

[michaelmars]

talk to the irs re: the problem and show proof that the client sent the money to CA, and did not profit by keeping it in his bank acct. He never intended to not pay his taxes and had the funds available and simply mailed it to the incorrect gov't entity. I have almost always got them to abate any late payment penalties in this situation but its best to deal with someone live @ the irs. I had 3 this season alone.

[BulldogTom]

The IRS is pretty easy to deal with on this matter. I am aware that they are usually reasonable. California, on the other hand can be a bear to deal with, but luckily, I got a very pleasant agent who was able to look up and identify the payment.

The phone number I used was the Practitioner Hotline right off the FTB website. Here it is so you don't have to look it up.

916.845.7057

Tom

Lodi, CA

[MAMalody]

Tom, your experience with the FTB and IRS reflect mine. The IRS is much easier to deal with than the FTB. I must admit that my client calling the auditor an idiot didn't really help to much and then he called his supervisor...it made the auditor get very technical and detailed. Fortunately, I had a prior experience with this auditor and was able get things reasonably calmed down for a fairly favorable resolution.

[BulldogTom]

I must admit that my client calling the auditor an idiot didn't really help to much

Don't you love it when our clients "help us out" on the audits?

Tom

Lodi, CA

[jainen]

>>I had 3 this season alone. <<

Wow. I wonder if there is something confusing about your filing instructions or the way you package client copies.

[kcjenkins]

As we, and our clientel, get older, I expect that we will see more of this sort of goof. Some clients just are a real problem with paper returns. They take them home, take them apart to "look them over", then either put them together wrong, leave something out, and/or put them in the wrong envelopes. I often try to get them to look at them in the office, then sign, and I then put them in the envelope and seal them right then. Just to be helpful, don't you know?

[Margaret CPA in OH]

Thanks, Tom, for the phone number. That's the one I've been calling but "We are experiencing a high number of calls and are unable to talk with you now" or something is the message I keep getting. I was sort of hoping you had a secret number! I'll just keep trying.