Adam H. Kerman <
ahk@chinet.com> wrote:
Adam H. Kerman <ahk@chinet.com> wrote:
There were a number of issues with respect to a relative's 2021 state
tax return. Base income is calculated on federal AGI, with additions and >>subtractions. Generally, retirement income isn't taxed but I forgot to >>include it on the correct line; my fault. This was addressed on an
amended return.
The return was processed quickly and a late estimated tax payment penalty >>plus interest was assessed. It took months for the amended return to be >>process. The tax was recalculated and no taxes were owed for 2021. The >>penalty remained on the account but not the interest.
How can there be a penalty based on paying taxes late with no tax owed?
The system applies the penalty automatically but it's not recalculated >>automatically as the total tax amount changes. That requires manual >>intervention.
Also, she qualified for two rebates but that required timely processing
of the tax return. The postmark date was ignored; the date the tax
return was received was entered into the system.
The state isn't disputing that the return should have been posted as of
the postmark date. Again, it requires manual intervention.
One of the letters she received had the name and phone number of someone
in tax return processing. It turns out that was a real person who
answered his own extension at the office. A month and a half ago, he
asked me to raise the issues still to be addressed in an email message
sent to his boss to be routed to him. Hearing nothing, I spoke to him >>again. He looked on the system and found the email message.
Yesterday, the penalty was abated. She should receive the remainder of
the tax refund in a few days, but nothing was said about changing the
tax return filing date on the system so she can receive the two rebates.
Though it's been like pulling teeth, I must say it's faster than dealing >>with IRS.
It's been a week since the penalty was abated. I spoke to the same tax >specialist, thanked him for dealing with the one matter. With regard to
the postmark date, he found an image of the envelope cover in the
system; they scan in all paper but still store it for years. He said it
was dated November and wasn't timely. I asked if it was the envelope
cover associated with the amended return; he said it was. He'll look for
the image of the cover from the original return.
We're getting there.
The tax specialist corrected the filing date of the original tax return
to the postmark date. The system now shows that the tax return was timely filed. A taxpayer who qualified to receive either of the two rebates
was required to file a timely tax return even if income was below the threshold.
He referred me to the woman handling rebates that hadn't yet been issued
during 2022. I decided to wait several weeks to contact her to see if
the rebate check would be issued. It wasn't.
I left her a voicemail message. She did acknowledge that the filing date
had been corrected in the system. However, the system was using the date
the amended return was filed, not the original tax return, to determine eligibility for the rebates. One of the rebates required that a schedule
be filed. Nothing requiring amendment changed her eligibility for the
rebates.
The state had to correct the system with regard to eligibility for those taxpayers who filed amended returns.
The rebate check was received in today's mail. The check was dated
today! The state postdates check!
Doesn't quite resolve all of the issues with regard to that state tax
return. Federal AGI wasn't corrected and I don't believe the correct
date was used for the payment she made with the original tax return.
However, neither of those issues change her taxes due for 2021, so
there's nothing to follow up on.
Yes. I had made a mistake, but the rest of the mistakes were made by the
state. There will be no further correspondence about this tax return.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
--- SoupGate-Win32 v1.05
* Origin: fsxNet Usenet Gateway (21:1/5)