Nuts... IRS sent me a CP2000 letter this week.

[Sonikku]

why should we care?

Because we're Jedi.

We care.

 

[SketchMaster]

Update: Got all my forms together and amended my return. I need to return $493 of the $919 I got that year from my Federal return, but I discovered CO owes me $110!

Everything's coming up Milhouse!

 

[JEDIYoda]

Nuts I received an unexpected return from the IRS...........what to do?????

 

[Spacehead]

They'll be the first to tell you that you owe them money. A mistake the other way goes completely unnoticed.

Not necessarily. A few years ago i received a letter from the IRS stating that i had made a mistake on my 1040 & my refund would be more than i had figured.

 

[dud]

The amount they are asking is $720, which is crazy for $3,600.

Question, how is 20% crazy when added to your other income for the tax year? I get a very small RMD from an inherited IRA each year and even though my ETR is about 10% I typically have T Rowe take 20% out as anything over my regular income is usually taxed at a higher rate. Depending upon your net income that year ... you might owe even more.

Good luck ...

 

[SketchMaster]

Question, how is 20% crazy when added to your other income for the tax year?

Honestly, I really hadn't even bothered doing the math in my head since all I was thinking was, "This sucks, I better not have to shell out all that money for a few weeks of work, and where is that damn W-2!?".

I had to split time between looking for the W-2 and hosting a party over the weekend. When I posted the OP it was late, it's the first time I've gotten a letter from the IRS, and I was annoyed I could not find that W-2. Heat of the moment complaint really.

 

[MongGrel]

We got rammed in the butt for about $800 bucks last year over a screw up from one of my wife's former bosses from several years ago.

They were claiming we owed a lot more than that initially, we had to take the time to sort it out.

 

[Gardener]

They'll be the first to tell you that you owe them money. A mistake the other way goes completely unnoticed.

Not true, they corrected my mistake several years ago which resulted in a refund.

 

[dullard]

Update: Got all my forms together and amended my return. I need to return $493 of the $919 I got that year from my Federal return, but I discovered CO owes me $110!

Everything's coming up Milhouse!

Glad that the total damage isn't as bad as you thought. The W-2 probably said that you had paid some of that tax, so your total bill is less.

I honestly think this is part of what makes our tax system fairly good. The employer and employee both separately claim how much money was made; the IRS checks that they match.

While one could argue that our taxes are bad for other reasons, our method of independent employee/employer reporting really makes illegal cheating and careless mistakes quite difficult. This is as opposed to much of the rest of the world where the employee tells the government the amount they made and there is no way to verify it. (Although, we do still have a lack of verification problem for certain types of business owners though).

 

[deadlyapp]

I had to pay over $1k to California this year because apparently they went back to my 2010 tax return and didn't like the fact that I called myself a non-resident and didn't claim income. That year I made about 25k through an internship in another state and was out of California for > 6 mo, but they didn't accept that I was a non-resident because I ultimately returned to California.

What a bunch of bullshit.