Did you get a check from the IRS

[wdfifteen]

Last week we got a nice check from the IRS. This week we got a letter.

"We made a mistake on your 2018 Form 1040. To correct our mistake we adjusted your Schedule D."

Sounds like this a basic error they made on the schedule D form. I doubt they did our taxes for us and found an error. By the wording of the letter it sounds like the IRS made the mistake.

[masraum]

Wow, weird, and congrats.

[Sooner or later]

A few months ago I received a similar type deal of about 500 bucks.

A month later I received a notice that I owed 250.

Gotta love it.

[Arizona_928]

Originally Posted by Sooner or later

A few months ago I received a similar type deal of about 500 bucks.

A month later I received a notice that I owed 250.

Gotta love it.

I got something along the same lines...
However, I have not received a notice saying I owed any money... Yet

[asphaltgambler]

Why yes.......yes we did receive a check!

[bkreigsr]

I wasn't aware that they had authority to 'adjust' your schedule D.
I would assume that action would require some sort of authorization/signature from the filer.
Bill K

[GH85Carrera]

Yea, they called me the other day. They said my SSN has suspicious activity, and they suspended my number. Whoo hooo, I don't have to pay taxes anymore, my number is suspended. I did not call the nice man back to straighten it all out.

[ossiblue]

I have received many adjustments to my tax returns over the years, but never with such a letter. Yes, they do check the math and check how the return was filled out, but I always received the adjustment reflected in the return check with a letter following later explaining why the amount would be different that what I had calculated. I must say, however, that my returns were always very simple and straight forward with no schedules ever added except Schedule A.

In your case, Schedule D is for capital gains/losses. It's quite possible that the IRS reviewed that as it's an area of potential abuse and error. Apparently, you included something as a capital gain that the IRS figured was not qualified, and made an adjustment in your favor. I have had several adjustments "in my favor" over the years, but none from capital gains, but as I stated, my returns were very basic.

[wdfifteen]

I got some time this morning and turned on the Google machine to see if I could get more info.

It was an IRS error, explained here. If you fit a fairly narrow set of circumstances you may be able to get some money back.

https://www.irs.gov/forms-pubs/error-in-tax-calculation-in-schedule-d-tax-worksheet-form-1040

[stomachmonkey]

I overpaid my ESTIMATED taxes by $10.00

They fined me $150.00 and credited me the $10.00 I overpaid.

WTF, I thought that's why they call them estimated.

So rather than raise a stink that could make things worse I paid it.

Two months later get two more fines, one for me and one for the wife, same issue, $150.00 each with a $10.00 credit for a balance due of $290.00

Again, figured $450.00 is cheap to keep them from wanting to look deeper so I paid the $290.00.

A month later I got a refund for $290.00.

I cashed it.

[biosurfer1]

Originally Posted by stomachmonkey

I overpaid my ESTIMATED taxes by $10.00

They fined me $150.00 and credited me the $10.00 I overpaid.

WTF, I thought that's why they call them estimated.

So rather than raise a stink that could make things worse I paid it.

Two months later get two more fines, one for me and one for the wife, same issue, $150.00 each with a $10.00 credit for a balance due of $290.00

Again, figured $450.00 is cheap to keep them from wanting to look deeper so I paid the $290.00.

A month later I got a refund for $290.00.

I cashed it.

If that isn't a perfect indication of government work, IDK what is.

[ckelly78z]

Separate departments under the same roof not working with each other (Government in a nutshell).

[masraum]

Originally Posted by stomachmonkey

I overpaid my ESTIMATED taxes by $10.00

They fined me $150.00 and credited me the $10.00 I overpaid.

WTF, I thought that's why they call them estimated.

So rather than raise a stink that could make things worse I paid it.

Two months later get two more fines, one for me and one for the wife, same issue, $150.00 each with a $10.00 credit for a balance due of $290.00

Again, figured $450.00 is cheap to keep them from wanting to look deeper so I paid the $290.00.

A month later I got a refund for $290.00.

I cashed it.

You should have sent them a bill for your fines.

[GH85Carrera]

Well our state tax commission is not much better. I received a letter that I underpaid my recent estimated taxes by 47 CENTS! I always thought all fractions were rounded to the nearest dollar. Anyway I was to get a small refund for the tax year 2018, that I just had applied to my 2019 taxes.

So they made an adjustment to the refund of 47 cents, and mailed me a letter. So at least one employee, and likely several worked on this, and then the printed it, and mailed it. I bet it cost the taxpayers of the state 20 bucks or more for them to bother with the 47 pennies.

Now I get to pay my CPA to adjust the tax payments and that will cost me real money. All for less than half a buck.

[CurtEgerer]

Originally Posted by stomachmonkey

I overpaid my ESTIMATED taxes by $10.00

They fined me $150.00 and credited me the $10.00 I overpaid.

WTF, I thought that's why they call them estimated.

So rather than raise a stink that could make things worse I paid it.

Two months later get two more fines, one for me and one for the wife, same issue, $150.00 each with a $10.00 credit for a balance due of $290.00

Again, figured $450.00 is cheap to keep them from wanting to look deeper so I paid the $290.00.

A month later I got a refund for $290.00.

I cashed it.

Sounds very typical. The IRS is an absolute bureaucratic nightmare with the power to do anything they want, strike fear into anyone, and ultimately kill you if you don't pay up (why else would they have 5 million rounds of ammo ready to go ...). The withholding tax must be eliminated and EVERYONE should write a check each quarter,just like business owners. This is the only way the majority of citizens will comprehend the amount of tax they pay and rebel. Better yet, eliminate the IRS and replace it with a department that issues a simple Steve Forbes-like postcard flat tax.

[GH85Carrera]

Originally Posted by CurtEgerer

Sounds very typical. The IRS is an absolute bureaucratic nightmare with the power to do anything they want, strike fear into anyone, and ultimately kill you if you don't pay up (why else would they have 5 million rounds of ammo ready to go ...). The withholding tax must be eliminated and EVERYONE should write a check each quarter,just like business owners. This is the only way the majority of citizens will comprehend the amount of tax they pay and rebel. Better yet, eliminate the IRS and replace it with a department that issues a simple Steve Forbes-like postcard flat tax.

I agree. I am a business owner. The IRS makes it hard. ONLY the IRS could figure 1/4 of a 12 month year can be first 3 months, then two months, then 4 months and finally 3 months in the same year! WTF?

[wdfifteen]

Originally Posted by CurtEgerer

The withholding tax must be eliminated and EVERYONE should write a check each quarter,just like business owners. This is the only way the majority of citizens will comprehend the amount of tax they pay and rebel.

I agree, but as an employer I agree for a different reason. It costs businesses a lot of money to collect taxes properly or pay the fines if you don’t collect it properly. If you are an employer, your employee’s taxes are none of your business (along with health insurance- but that’s a different subject). We provide slave labor for the governments and are never compensated for doing it right, but always punished for doing it wrong.

[Chocaholic]

Yes, we received a small check ($93) yesterday from the IRS, but no explanation as of now. This is a first for us.