IRS rejected my $2500 PIP credit.

Well I didn't file for a credit since I bought a standard hybrid. However, if it makes you all feel any better, I received a nasty gram in regards to my 2011 taxes. They want me to pay something I already paid to them and they say I didn't complete the necessary forms for it. So I had to mail them a copy of the cashed check, copy of my copy of the tax return which has the form, a copy of my nice person from the xerox machine, a blood sample, hair sample, and finger prints.

I knew how much I was going to have to pay them for some money I moved and sent in MORE than what was required when I did the transaction and got some back at tax filing time. They want me to pay again for the penalty and taxes on the transaction. I don't quite get it since I had verification they cashed my check and received a document stating they received it (which I called and asked for a month after my check cleared) and applied it to my 2011 tax year. So, yeah, they can be a little bit messed up. I still haven't heard anything back from them and it's been two months. So I'm going to have to call them soon and ask them whats up.

Be diligent and cross every 'T' and dot every 'I'. I also have a word of advise; Be NICE to them. Be courteous in any form of communication to them. Don't be mean or rude. Unless you want to be audited for the next 20 years.

 

Yes, on (form 1040) line 53 there is an "X" in the box "C" next to that is a line filled in with "8936" then the amount of 2,500 in the right column of line 53.
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Yeah- neither did the IRS phone agent this morning- but he still couldn't understand why the $2500 was denied

 

The part that humors me is the 'You'll just have to wait 3 weeks until the letter arrives' part I mean seriously? Did the IRS type the letter up on a old school typewritter rendering there zero digital records in there system explaining what the letter says?

I've learned over the year the service you get from a phone center (be it DirecTV, IRS, Wells Fargo, whatever) is directly tied to the level of access they have. I feel as if the first people you speak to have the power to literally do nothing but pickup a phone and hang up a phone.

 

Well, I'm open to suggestions for an earlier resolution?

 

And this from the folks who want to manage your healthcare?

 

And use your taxes wisely.

 

I just checked and the IRS will be depositing the full amount into my bank account in a few days.

 

I did the paper return with the 8936 form. It was mailed the last week of Jan and I received my full amount on 3-27 last week. The status site was updated 2 weeks before with an approval then a week later posted a return date.

 

Well... I got a response from the IRS. I have to complete and send them a form which I've already completed and sent to the twice? The HELL? I'm calling to ask why I have to fill it out again AND send it to them a THIRD time? It's going to be the same thing as before!

 

Which form? Never mind- just remembered you don't have a PIP....

 

Just looked at "where's my refund" again last night- it's been updated with the following new info:
We made changes to your tax return that changed the amount of your refund.
You will receive a notice that explains the changes we made to your tax return. You should receive your notice and the balance of your refund, $xxxx, by April 8, 2013.

It also now says my refund will be deposited by tomorrow- of course less the $2500 from the PIP credit.
Hopefully the explanation letter with a resolution suggestion will arrive by the 8th...

 

Getting audited every year isn't so bad. You get an actual trained accountant to work with and at the end of the audit there are NO loose ends that someone can blackmail you with later on. I invite an audit every year just for good luck, it doesn't cost me anymore in tax preparation expenses and usually I end up paying less in taxes after the audit.

 

Yeah, I know. I'm a little off topic. I'm sorry.

 

I consider myself lucky and received my full refund and tax credit. I e-filed with Turbotax on March 13. I had finished my taxes months before but the issues with the Form 8936 spooked me. I waited until every last problem was fixed including the bug where it won't accept 2012 model cars.

My understanding is this: Computers rarely makes mistakes. People do all the time. I wanted to make sure my return was completely automated. I don't know if any that i am saying is true but both state and federal refunds electronically deposited into my account about a week later as it does every year except for the 1 year I had to paper file to show proof of first home buying credit. The refund was less than I had calculated and the check took months to arrive. No more paper for me unless I have to.

 

But computers are only as smart as the programmer...

 

Lol, you're not alone. I too got a nastygram from them for my 2011 year asking for a couple thousand dollars because they rejected one of my deductions and completely missed the taxes I paid on my stocks. I sent them back a letter saying they are wrong so we'll see how that goes. What a PITA.

 

Which is the real reason I received an IRS nastygram just over a year ago. Somewhere along the e-file path, one of two IRA conversion forms didn't make it through. The IRS was unable to match some 1099s to the return, and hit us with extra taxes and penalties.

I paid up immediately to stop additional penalties, then wrote the appeal. When a human reviewed it, the appeal was granted, and the payment returned with interest -- better interest than the money market account from with it came.