(Pardon my title) DAMN STIMULUS REBATES

[lydia33]

I have a client that filed a paper return on or about April 11th. They owed a small dollar amount and sent a check for the payment. The last two numbers of thier ss are 00. I know that it says that the return has to be processed first and to give it about six weeks. The check was cashed by the way so we know that they recieved the return. They are due a rebate for $600. When I go to the IRS "where's my rebate" , it says it has no information on this taxpayer. Do we have a number that we can call?

[Lynn EA USTCP in Louisiana]

I have a client that filed a paper return on or about April 11th. They owed a small dollar amount and sent a check for the payment. The last two numbers of thier ss are 00. I know that it says that the return has to be processed first and to give it about six weeks. The check was cashed by the way so we know that they recieved the return. They are due a rebate for $600. When I go to the IRS "where's my rebate" , it says it has no information on this taxpayer. Do we have a number that we can call?

The form I received about my stimulus rebate gives the following phone number 1-866-234-2942

Lynn Jacobs, EA

Kenner, LA

[lydia33]

Found out today what the problem was or I think this is why..........Taxpayer received a letter that she did not sign the return......Then she got a letter about her rebate.

[Lion EA]

Just received an email from a client who made $135,000 and hasn't filed (owes tens of thousands and looking for more deductions!) asking why she didn't receive her $1,200 from the IRS !!! Well, it would've been $1,500 if she earned less than $75,000 but is $0 with her income and can't be calculated by the IRS until she files her return.... So, now it's my fault she's underwithheld AND missing her stimulus payment, too. I told her S-3 and CT-D, but she did S-9 and CT-B because that's what she thinks I told her. She'll go someplace else next year, no early stimulus, she'll have changed her W-2, and all will be well with the new preparer; neither she nor the preparer will understand why the poor outcome she had this year is NOT MY FAULT.

[jainen]

>>She'll go someplace else next year<<

We can't tell from your post, Lion, whether you are pleased about this or not.

[taxxcpa]

Just received an email from a client who made $135,000 and hasn't filed (owes tens of thousands and looking for more deductions!) asking why she didn't receive her $1,200 from the IRS !!! Well, it would've been $1,500 if she earned less than $75,000 but is $0 with her income and can't be calculated by the IRS until she files her return.... So, now it's my fault she's underwithheld AND missing her stimulus payment, too. I told her S-3 and CT-D, but she did S-9 and CT-B because that's what she thinks I told her. She'll go someplace else next year, no early stimulus, she'll have changed her W-2, and all will be well with the new preparer; neither she nor the preparer will understand why the poor outcome she had this year is NOT MY FAULT.

If she only made $135,000 why would she owe tens of thousands in tax?

[Lion EA]

Actually, I think I want to keep her. Last year she was a delight to work with. But, two years ago she had a nervous breakdown and was a nightmare that year, too. Anyway, she had $51,000 in alimony and some investment income without any withholding, so owes the IRS at least $12,000 and CT $4,000 in round numbers. Technically, that's only one ten thousand and a few more thousand, but I do get dramatic when stressed. And, her son had investment income, so kiddie tax comes into play taxing son at mom's rate....

[TAXBILLY]

I refer my clients to the IRS for stimulus questions.

taxbill

[kcjenkins]

Well, if you do want to keep her, spend a bit more time explaining things to her, it may be that what she really wants is someone to 'vent' about the taxes with, and that is an honest thing. Sometimes I find that just agreeing with them how lousy and unfair the system is to them is all they really need to hear. They can't call up the IRS and go off on them, so they need to talk to someone who understands, and who can agree with them, while still keeping them out of trouble. Let her know clearly that you sympathize with her, and will do all you can to keep her taxes as low as is legal, and I bet she comes back to you. And you can have sympathy, even while you know it is her responsibility to pay in on that income that does not have automatic withholding. I can sympathize with anyone who has to pay even $100, while our Congress wastes so damn much!

[Lion EA]

We've been e-mailing back and forth for a week. We've been talking about AMT hitting working people like her ($2,000 of her taxes are AMT). I've been telling her what to change her withholding to. She's been asking about paying. So, I've been explaining why dipping into her IRA will cost her on 2008 taxes, pros and cons of borrowing from her 401(k), whether her charge cards give cash back, installment plans, how CT is less businesslike than the IRS, etc. I ran a projection for 2008 taxes -- she bought a house in February, changed jobs, receives bonuses, qualified for a 401(k) plan, dependent care benefits, and a flexible spending account for health premiums and expenses, and other changes. I even calculated the change in her alimony due to her income, per her divorce decree; and will run a separate computation when she obtains her ex's info. If she takes up any more time, I will raise her price to drive her elsewhere!