IRS frustration: Dependent SSN mistake caused major tax issues

General
1

My accountant made a mistake on multiple years of tax returns by not fully typing out my dependent’s SSN. The IRS recalculated the returns, sent me nasty letters, and claimed I now owe a hefty amount.

The accountant then prepared a batch of 1040C returns, which I filed in September. This should have fixed the issue and put me back in the refund bracket. However, a few days ago, I received a certified letter threatening property seizure and wage garnishment.

Dealing with the IRS has been a nightmare.

2

1040C is for non-US citizens leaving the country to report income. Are you sure the IRS didn’t ask for a 1040X?

3

Sky said:
1040C is for non-US citizens leaving the country to report income. Are you sure the IRS didn’t ask for a 1040X?

The IRS rep specifically said 1040C was needed to fix it. If they meant 1040X, they weren’t clear about it.

4

@Paz
It’s worth double-checking. 1040X is the form for amended returns, not 1040C.

5

The IRS letters usually say to respond directly, not to file amended returns. Sounds like your accountant dropped the ball.

6

Micah said:
The IRS letters usually say to respond directly, not to file amended returns. Sounds like your accountant dropped the ball.

Agreed. If the IRS recalculates, you’re supposed to respond to their notice, not file a whole new return.

7

Set up a payment agreement online:

Choose a 180-day Full Payment Agreement to buy time while they process your returns. This can prevent further collection actions.

8

Send the IRS letter to your accountant and let them handle it. How long ago did you file the amended returns? It’s possible the letter was sent before they were processed.

9

Blair said:
Send the IRS letter to your accountant and let them handle it. How long ago did you file the amended returns? It’s possible the letter was sent before they were processed.

I filed them in September. My accountant did his part, but now I’m stuck with hours of phone calls to resolve this.

10

@Paz
Mailing your response might be faster than waiting on the phone.

11

@Paz
But did he really do his part? Missing the full SSN on a dependent is a basic requirement that’s been standard for decades.

12

Are you sure the full SSN wasn’t entered? Often, accountants redact parts of the SSN on copies provided to clients for security.

13

Farrell said:
Are you sure the full SSN wasn’t entered? Often, accountants redact parts of the SSN on copies provided to clients for security.

Usually, only the last four digits are visible on client copies.