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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16579
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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My 17-year old son just received a "Notice of Intent to Assess"

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My 17-year old son just received a "Notice of Intent to Assess" for his "2012 Massachusetts Income Tax Return has been selected for verification." They want a copy of his 2012 federal tax return (which he filed and can provide), copies of his W-2s and final pay stub (of which he has none because he runs his own business) and "Copies of all 1099 Forms, Forms W-2G and Schedule K-1 Forms if related to any withholding amount claimed on your return". The letter says if he does not respond within 30 days the withholding amount of $478 will be disallowed. His 2012 Mass tax return showed zero tax due, but he had liquidated a Roth IRA in 2012, and Schwab (where the IRA was) withheld the $478 in state tax along with $911 in federal tax. He actually had received a notice from Mass DOR about a month ago requesting proof of the withholding, and we faxed them a copy of the 1099-R that clearly shows it. We assumed this would take care of it and his $478 state refund would finally show up, but now we get this letter. I just don't get it. Any idea as to what might be going on? Any advice as to what to do? My guess is that we just need to send the copy of the 2012 tax return and the 1099-R with a letter saying we disagree with any potential decision to disallow the withholding. But it is very strange that this has even occurred; don't they see that Schwab withheld the money? Why wasn't the faxed copy of the 1099-R enough?

MyVirtualCPA :

Hello how are you today?

MyVirtualCPA :

I'm sorry to hear about your issue.

MyVirtualCPA :

Unfortunately, in this situation your only option is to send in the Federal income tax return for 2012 and all supplemental information.

MyVirtualCPA :

Reply to the letter at the address, and send it via mail. Do not fax the information.

MyVirtualCPA :

I'm thinking that perhaps your fax got lost.

MyVirtualCPA :

So, your guess is correct. You will send the return and 1099-R with an explanation that you disagree with the decision to disallow the retirement

Customer: Should I try to call them and discuss it? It says "If you wish to discuss this notice with the DOR's Audit Division, please call XXX-XXX-XXXX". It also says "If you would like to appeal, you have the right to a pre-assessment conference, to quest settlement consideration or both, with the Office of Appeals. This request must be made within 30 days from the date of this notice. (See enclosed "response form"). Am I appealing? Is sending a letter saying I disagree the same as appealing? I though appealing was something you did when judgement had already been handed down. I'm confused.

At this point you're not appealing. You're responding to their request. If they gave you a 1-800 number to call, I would call that on Monday and discuss the issue with them. This could be something that they could perhaps fix over the phone. At any rate, they will tell you exactly what you need to do. If they disallow the withholding, then you would be able to appeal that decision.

They have to give you the information on how to appeal a decision, that comes with all correspondence from them.

Please let me know if you need anything else. If you have received the answer you need, please rate my response "excellent" so that I may receive credit for assisting you today.
Customer: replied 4 years ago.
Thanks. One final question. Is my son being "audited"? I think they are just asking about the withholding. They have not asked for documentation of income/expenses. He can document all of that if necessary, but it would be a time sync, and we are hoping it won't turn into anything like that.
This isn't a full blown audit. This is just correspondence about one thing...the withholding. This should not turn into a full blown audit.

Thanks. Please let me know if you have further questions. If not, please rate my response "excellent" so that I may receive credit for helping you today. Thanks again.
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