Fair enough. I think you are giving the IRS too much credit. They have implemented a system with e-filing that has the sole intent of making taxpayers file more accurate returns, and in turn, collected more tax revenue overall. It is the taxpayers who suffer from this not so perfect system as I have said repeatedly.
Second, you should never, ever be in a position where you are receiving that huge dollar amount in a refund. That just means you had the IRS keep YOUR money, and you never earned a dime of interest while they did. Many people call refunds due a free loan to the IRS. Essentially, it is. Why would you do that again after what you have been through?
As to your business partner, I would say he was lucky and you were not. It could have easily been the other way around. The IRS is a huge bureaucracy run by human beings who we all know are not perfect. A computer system is only as good as the person who programs it and feeds it data. Also, did your partner have the exact same amount of W-2s and 1099s? Was line X on Schedule A the exact same amount as you put on line X? Line Y? Etc. Etc. Etc. ?
So you see, it may seem similar to you, but to the IRS, it is not. I am still surprised he received his refund with no problems whatsoever.
I really believe you must understand the limitations of the IRS, realize you are not alone, and be patient. I am sure you will receive the refund and the worst possible thing that may happen is the amount is adjusted a bit (it may even be in your favor). But I do not see adjustments happening either. I think you would have been told by now. Just be aware anything can happen with the IRS, and you just happen to be the one of the unlucky ones this year. Everybody at one time or another has their stories to tell about their problems with the IRS. At least your problem is not audit related. Yes, again, it is NOT audit related.
Lastly, please, please, see a tax professional in your area who is open year round. You have far too many assets. and you need tax planning
year round. If you were my client, 1) I would have never e-filed your return. 2) No way would you be getting a refund as large as you are now waiting for. You would have received it during the tax year, invested it, and earned money, then broke even come tax time. It just takes some simple planning.
So if you come back next year with a refund around the same amount, I am not only going to ask you for a job, I will demand one! I just want my salary to be equal to what your refund is. Of course, I'm kidding. If I did any tax work for you, I would lose my license under such an arrangement. Can you tell me what all this mean? How how they varify the information we send them?
It's done through an automated matching process as I have said. The higher the amount, and the amount of forms to match, the more likelihood a problem will occur.
I also was told after my second call to the irs on Friday that I should have word by the first week in June. Is this letter standard when request come in and tax payers request information? Please let me know.
In a word, yes. It's normal. Since 1982 my father taught/told me that I have an obligation to do everything possible to avoid having the client receive any letter from the IRS. Why do you think he told me that? Why do I still live by the creed today, as do all the competent tax professionals out there.
I also hope those accountants you talked to are close by, or at least willing to help you out with some tax planning for this year and future years.
Best of luck to you my friend...
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