Reply to Jesse Hand's Post: Hello Jesse,
Thanks for your prompt reply. You've addressed my problem in the general sense, I realize, because I haven't supplied you with enough information. I have included the important portions of text from the letter that I received from the Department of Revenue - Notice of Intent to Assess. I would actually prefer to email you the letter so you can get a clear understanding of what's been asked of me. If that's okay with you, please provide me with an email address so I can send it along. Please rest assured that I will accept your answer (thereby getting you the payment) once I can get more clarity with regards XXXXX XXXXX position.
Excerpts from the letter...
You are receiving this notice because your 2007 Massachusetts Income Tax
Return has been selected for verification. In order for us to resolve this issue, it is necessary that you provide the following information and/or documentation:
1) A completed copy of your 2007 Federal Income Tax Return including all schedules, attachments and all forms to substantiate any witholding amounts shown on your return.
2) A copy of your pay stub issued by your employer.
3) If an Individual Taxpayer Identification Number (ITIN) was used for anyone listed on the return, including dependents, please submit a copy of the letter issued by the IRS to verify the number(s).
If you wish to discuss this notice with the Department of Revenue's Audit Division, please call ... If someone will be representing you, you must complete and submit a Power of Attorney form.
If you do not respond by 30 days from the date of this notice, the witholding of $3,367.00 will be disallowed pursuant to G.L. c. 62C S 26(b)
If you would like to appeal, you have the right to a pre-assessment
conference, to request settlement consideration or both, with the Office of Appeals. The request must be made within 30 days of the date of this notice.
----END OF LETTER ----
Facts from my side...
1) I did have an agency prepare my tax return and I contacted them with this letter. They asked me to send a) Copy of Federal Tax
Return b) Copy of Notice c) Copy of W2 d) Copies of pay stubs.
I was further told by them that "The Dept of revenue only wants to confirm the withholding of taxes on your W2 and tax return. Once you forward all the requisite documents they shall evaluate the case process your return". But I still wanted to seek a second opinion.
I am not sure about how many pay stubs I need to be enclosing for the year 2007. I have all of them for the year 2007, but the notice mentions 'a paystub'. So I don't know if providing all of them is giving too much information, especially since I have was on a long vacation at the start of the year and so wasn't paid for that particular month. Please advise.
The other thing I'd like to know is if I really have to go for this audit. It is called a Desk Audit in the notice. There is no statement that says that I need to be there. It simply asks for more information via mail. I wouldn't be too comfortable dealing with them directly since I'm not sure of the intricacies of the tax laws.
From your reply - "If you can prove all of the $3367 was withheld and sent to the state of Massachusetts, then make copies of all the papers that list the withholding and mail it to the person handling your case along with a cover letter that says that you disagree with their disallowing your withholding". - I do have all the documents that I need to show that the witholding in MA state was indeed 3367.00 (the amount that shows on my W-2 is 3366.92). I can copies and send them. Is the cover letter necessary or is it ok to simply provide them with only the documents they need? - W2s, 1099 etc.
Please advise. Your help is greatly appreciated.