MsElui

Hi - ive posted before about the rubbish tax advisers we have (very well known multinational accountants provided by the L1A company).

They have managed to stuff up our ITIN applications 2-3 times now as well as put in our returns rather late! The tax due has been calculated and paid and all we are trying to sort out is the ITINS.

so yesterday we recieved a revised tax calc from the IRS - which as far as I can work out has demanded a bunch of tax off us because the ITINS still are not sorted out so its removing the amount we claimed for the kids.

My question is: should we pay the new amount of tax requested (over 3k$) now, continue to try and sort the ITINS out and then claim the overpayment back

or

should we not pay the extra demanded until we successfully sort out the ITINS when the amount should no longer be demanded?

best suggestions please! Dont want to piss off the IRS at all but equally dont want to pay money we dont really owe.

dbj1000

Personally, I'd pay now, and claim in back in next year's return if you can afford to. As you say, don't want to piss of the IRS.

In your situation I'd also apply for the ITINs myself, rather than go through this saga of repeated screw-ups by your accountants. As I remember, it was trivially easy when I applied for ITINs for my family members who weren't entitled to SSNs.

md95065

I have been through several exchanges with the IRS over the years.

Generally I would say that if you are *sure* that you really do not owe the extra money then don't pay it - just continue to send letters to the IRS explaining the situation. The one exception to this would be if the whole thing ends out dragging out so long that they start threatening you with a tax lien - at that point it is better to just pay the money and try to get it back later.

Rete

Do you have an IRS office in Columbus? If so, go in person and apply there for the ITIN in person. Lots easier than doing it by mail. Bring your tax returns with you and any correspondence you have from them.

Also are you 100% sure that you and the kids are not eligible for a social security number? Because if you are, then the IRS will not give you an ITIN.

MsElui

ive got the ssn number but dont think i can get them for the kids on L2's.

Ive sent off the ITIN forms again this morning. With notarised copies of the passport bio page and Visa and I94. I think the document the accountants were sending in stated as 'authorised agents' they had seen the passport but it didnt mention the visa and or I94 so hopefully this will do it. If it doesnt I will certainly look into visiting the local office.

sambapink

Do you know the ITIN's didn't come through?? We didn't get our full refund this year because one of my daughters ITIN's didn't come through. Infact got a letter to say it been rejected - have to wait for another letter to say 'why' its been rejected!! - For us it just means that we didn't get certain credits.. Education Credit being one of them.. and her personal exemption.. Its very frustrating! Even my tutor at my Tax class says ITIN's are a confusing subject.. I personally think HR Block confused matters when they applied for my childrens ITIN's.. For some reason they entered a number (SSN) for my one daughter.. which isn't even an approriate number!! ANyway I can't do anything until I get the explanation letter.. Either way its HR Block's mistake - and they will have to fix it!!!

MsElui

well i do think the accountants loused up - but seeing as we have had 2-3 attempts by them im going to apply direct to see if i can fix this now before the cretins waste another few months going backwards and forwards.

Pennywell

To be honest we had this until the kids had GCs. Try the IRS tax advocate we found them helpful because at least you could talk to the same person and it puts the scares on the accountants!

rew1000

I agree with everything that's been said so far - you don't want to piss off the IRS, but if you've paid the correct amount of tax for your situation then the consequences of not paying them extra can't be too bad.

I think what happens is that large numbers of automated processes are run to pick up usual errors. If you're an unusual case of the usual error, the proposed amendment to your tax filing is not one you'd want to accept. I had this the first year that I filed where they sent me a check for a refund because they said I should have claimed the standard deduction when actually I wasn't entitled to it. It turned out there was some box I should have checked - the "correct" correction would have checked that box rather than sending me a check for loads of $ that I wasn't entitled to.

If you dragged your feet over paying, I'd hope that at some point a sentient human being would get involved and straighten it out. I would second the suggestion of going in in person if you can - they can't wriggle as much once there's an IRS "accepted" stamp on the ITIN forms.

What I'm not clear on is how you've managed to file the return without the ITINs - I thought that that ITIN application process consisted of stapling the ITIN application form to the 1040, which is processed once the ITINs have been assigned? Did the IRS reject your ITIN application then process the 1040 anyway? If so, that seems daft, but not surprising.

Rete

You're correct. L2 is not eligible to work, therefore, not eligible for a social security number.

MsElui

yes - itin forms went in with tax return so it looks like the precessed it anyway now.

A week ago we got a letter saying my husband will get the stimulus payment. This morning (after i sent in the latest itin apps) we got a new letter saying the stimulus payment will be deducted from the 'supposed' amount we owe. Not suprised - just hope we can get the itin sorted asap and get it all cleared up.

meauxna

Just to clarify.. L-2 spouse may work and have SS#, L-2 children not.

Pennywell

I asked my husband about this. Like you we had a major firm doing our tax returns and like you we had problems. Take all documentation to your local tax office, visas, marriage and birth certificates, pay advice etc. and look pathetic. I really can't remember this stage as I was so far into my own pity party.