IRS letter says they do not have my 2014 return, ACA subsidies threatened

[John Galt III]

Another ACA glitch?

I filed my 1040 tax form with an 8962 ACA Premium Tax Credit form on time, and done properly, afaik. Used paper forms and mailed them in, the old fashioned way, in early April, 2015. Alarmingly, though, I got a letter from the IRS 2 days ago stating that they did not receive a 2014 tax return (at all) from me and therefore my ACA Tax Credits would be in jeopardy.

They did cash my check though, so I know they had my tax forms at one point in time. I am assuming they really do have my 2014 return, but are backlogged, and have not processed it yet, therefore I got the roboletter.

Googling, I find no one else out there has this problem, though! Or at least my Google search terms didn't find it.

There is an 800 number to call listed on the letter (letter number 5591), but I think I can actually get more and better info here than from the 800 number, though I will probably eventually call it.

I've been getting my HI premium subsidy all along, and still am, at this point.

Not too reassuringly, the letter also mentions, in bold, "If you have already filed your 2014 tax return with Form 8962, please disregard this letter".

Nobody else have this situation with IRS saying they had no 2014 tax return from you?


Thanks

 

[gauss]

I am just thinking out loud here, but two things come to mind:

- You could order tax transcripts for 2014 to verify what they have for you, but this may take a while in that the online service is no longer available

- You could attempt to e-file a return for 2014 and see if their system accepts it. Normally the efile system would reject a return that has already been filed with your SSN (a common situation for tax identity theft victims).

The good thing is that you payed your taxes by the due date so any failure-to-file or failure-to-pay penalties would be $0 since they are based on percentages of unpaid taxes. (assuming that they indeed show a $0 account balance for you)

If you purchased your 2015 HI through the exchange then you should be able to receive a subsidy when you file next year (assuming you meet all conditions) even if they terminate the monthly in advance subsidy due to this snafu.

Did you know that you can Fed e-file for free over the web using IRS provided "free fillable forms"? You could also download the free version of TaxAct and Fed e-file for free.


-gauss

 

[RockyMtn]

I received a similar letter. First one said needed income verification so I sent in copies of a W-2 I had from a consulting gig as well as some misc 1099's, etc. Heard nothing back. A month later I get another one asking for a copy of my 1040 and all supporting documents. Basically my entire return! Haven't heard anything in a while so maybe that was enough.

I also filed by mail as have had some forms issues e-filing in the past. In my case they also withdrew amount owed from my bank so they must have had my return at some point.

On another note I filed an amended return for 2013 last October after I received a corrected 1099 two days after the April 15 filing date. The correction ended up reducing my tax due by about $1k. Still haven't seen that check yet. When I go to the website it says still being processed but they have it. When I call they say they will "elevate" that amended return, whatever that means.

And finally my GF who files by mail since she had her identity stolen and a fraudulent return filed under her SS# still has not received her refund (she filed in February).

Clearly the IRS is having some issues!!!

 

[Clell]

My mom received the same letter today. Just like you she filed through mail, which she had to do because someone tried to use her ID to file a fraudulent tax return. The check she wrote them was also cashed. She has Alzheimer's (she's only 61) so I'll have to take care of this for her.

Because of the ID theft just getting the return filed in the first place was one of the biggest headaches I've ever dealt with. I ended up going to H & R Block and having them fill it out so I know it was correct. Next year she'll be eligible for Medicare and I won't have to deal with this mess.

 

[meierlde]

Did you send the return return reciept requested and get the card back? If so you have proof the IRS got the return, even if it went thru the lockbox which is likley where the return got lost between the bank that cashed the check and the IRS.

 

[Texas Proud]

I would call the 800 number and ask.... no reason to let it go any farther without any knowledge...

If it is like most lockboxes, the check is striped from the return and cashed right away... then the return has to go someplace to get entered.... there could have been some screw up and it was lost...


So, the phone call tells you it has either been input or not... and if not just send in a copy and make sure you put COPY on the bottom of each page...

Do not assume anything.... do not wait...

 

[RE2Boys]

I suspect that the IRS, due to budget cuts by Congress, is short personnel who are over-worked and making lots of mistakes with paper. The paper return numbers are entered into the computer system very early in the process and those folks are making mistakes.
I could not efile in May, seems one of my son's had claimed their own personal exemptions.....except that I filed for them (minor), and have a copy of their paper filed return!! It got transcribed into the computer system incorrectly. Forced to mail it in, they cashed the check promptly though.

 

[MRG]

... Snip...

Next year she'll be eligible for Medicare and I won't have to deal with this mess.

I hope you won't have problems. My DM was denied Medicare coverage at age 80. Seems the IRS sent Medicare information that she worked at Megacorp. I had to pull in HR to get the issue resolved. Wasn't ID theft the IRS had transposed my SSN with hers. Nothing similar about our information other than last name. The IRS can be amazingly inept.

 

[Rickt]

I would suggest that you call the 800 # and talk to them, explaining that you mailed the paper return with check. Your call will be documented as a timely response and hopefully they will also tell you that they now have your tax return in the system. Good Luck!

 

[audreyh1]

I wouldn't let go of it either. IMO the cashed check is proof they received the return, provided they are the ones who deposited it, and the back of the check will show who/where/what account it was deposited. This is something you can see or download from your bank online - get yourself a copy of both sides. At least you can communicate this information along with when you mailed the return, etc. and this info will become part of their records.

We set up an IRS.gov account so that we could see copies of all our returns and status of our "account" with the IRS. This would be a good time to do so. I think our early April return showed up sometime in May last year. Good way to check the current status. Who knows what delays where involved with these letters.

 

[ETFs_Rule]

Make sure it's not a scam.

 

[BuysToys]

You should call the 800 number. If you don't receive a response from customer service that satisfies you, ask to speak to a supervisor.

I received the "your subsidies are threatened" letter five times from March through June. Unfortunately, I used a broker to purchase my 2015 coverage and now have two separate account IDs so cannot upload my information. The original customer service person I spoke with in June was not helpful, giving me the same answer I had received all the other times I had called. ("You need to send your income verification information to this address.") When I spoke with the supervisor, I was told that my 2015 income could not be verified based on what I was sending them. Since much of our income will be from IRA to Roth conversions I plan to do late in the year, I don't have additional documentation to send them. I was told that my subsidy is based on my 2013 tax return as they do not yet have access to the 2014 returns.

Not certain whether your real issue is with the IRS or ACA, but the only way to resolve the problem is to call.

 

[W2R]

You should call the 800 number. If you don't receive a response from customer service that satisfies you, ask to speak to a supervisor.

+1

I know you aren't relishing calling that number, and possibly spending a while on hold before being able to talk to a real person. But, I really think you need to do this, fun or not. Check first to make sure this is a real IRS customer service number, and not a scam number (which came to mind after reading ETFsRule's post).

 

[MichaelB]

+1

I know you aren't relishing calling that number, and possibly spending a while on hold before being able to talk to a real person. But, I really think you need to do this, fun or not. Check first to make sure this is a real IRS customer service number, and not a scam number (which came to mind after reading ETFsRule's post).

+2

 

[Texas Proud]

I wouldn't let go of it either. IMO the cashed check is proof they received the return, provided they are the ones who deposited it, and the back of the check will show who/where/what account it was deposited. This is something you can see or download from your bank online - get yourself a copy of both sides. At least you can communicate this information along with when you mailed the return, etc. and this info will become part of their records.

We set up an IRS.gov account so that we could see copies of all our returns and status of our "account" with the IRS. This would be a good time to do so. I think our early April return showed up sometime in May last year. Good way to check the current status. Who knows what delays where involved with these letters.

The problem is that the check does not prove that he mailed in the return.... you can mail in a check without a return.... they will cash it....

So, all it proves is he paid his taxes.....

 

[Texas Proud]

You should call the 800 number. If you don't receive a response from customer service that satisfies you, ask to speak to a supervisor.

I received the "your subsidies are threatened" letter five times from March through June. Unfortunately, I used a broker to purchase my 2015 coverage and now have two separate account IDs so cannot upload my information. The original customer service person I spoke with in June was not helpful, giving me the same answer I had received all the other times I had called. ("You need to send your income verification information to this address.") When I spoke with the supervisor, I was told that my 2015 income could not be verified based on what I was sending them. Since much of our income will be from IRA to Roth conversions I plan to do late in the year, I don't have additional documentation to send them. I was told that my subsidy is based on my 2013 tax return as they do not yet have access to the 2014 returns.

Not certain whether your real issue is with the IRS or ACA, but the only way to resolve the problem is to call.

You can be like me and just pay the full amount knowing you will get it when you file your return next year.... (after the SC ruled it was available to everyone)......

 

[John Galt III]

Update: I called the 800 number on the letter, got the "heavy call volume" message, went to the automated system instead, entered ssn, selected option for "received letter", selected option for "detailed description of account" and got transferred somewhere, then "due to extremely high volume for this option we suggest you try your call later, or on another business day". Didn't even give me the option to hold. Maybe the way to go is to register at IRS.gov but I am paranoid that will expose me more to scammers. Doesn't make sense, I know....

 

[Tandemlovers]

We set up an IRS.gov account so that we could see copies of all our returns and status of our "account" with the IRS. This would be a good time to do so. I think our early April return showed up sometime in May last year. Good way to check the current status. Who knows what delays where involved with these letters.

How did you set up an online account with the IRS? I looked at the website but could only see information for businesses that wish to set up online account, not individuals.

Thanks : )

 

[audreyh1]

The problem is that the check does not prove that he mailed in the return.... you can mail in a check without a return.... they will cash it....

So, all it proves is he paid his taxes.....

But he knows that he mailed in the check with the return, so it's still worth asserting - telling them he knows that they got the return because the check was with it. They can get his assertion on record. Why would they bother to dispute it at this point?

 

[audreyh1]

How did you set up an online account with the IRS? I looked at the website but could only see information for businesses that wish to set up online account, not individuals.

Thanks : )

Edited: oops - that somehow was a stale link? This is the current link: http://www.irs.gov/Individuals/Get-Transcript

But it is currently displaying:

Alert:
The online Get Transcript service is currently unavailable. You may still order transcripts using the Get Transcript by Mail service. We apologize for any inconvenience.

and I am unable to access my account. They don't give any indication of time frame, do they?!?

We set it up earlier this year, and were gratified to find all our records matched what we thought they should be.

You do need to have you credit unfrozen to take this step, because they use Experian (I think) for identity check. If you have trouble - it only takes a phone call to get past it.

A bit of background on taking this step: Sign Up at irs.gov Before Crooks Do It For You — Krebs on Security

 

[Clell]

So I called the IRS this morning. After calling several times and just getting hung up on it finally put me in line to talk to someone (I've dealt with them before so I knew I would eventually be put in line if I kept calling). After waiting on hold for about an hour I finally got through to an agent. I told her about the letter and gave her the info she needed to access the account, and then she put me on hold again for 15 more minutes.

When she came back she said that she didn't understand why the letter was sent and put me on hold for another 10 mins. When she came back on the line again she said it had something to do with the fraudulent return that was filed. I didn't fully understand what she was saying, but basically the fraudulent return somehow kept the real one from going through. She then said they had our return and everything was fine and we didn't need to worry about the letter. Even so, I still feel a little uneasy about the whole thing.

 

[audreyh1]

So I called the IRS this morning. After calling several times and just getting hung up on it finally put me in line to talk to someone (I've dealt with them before so I knew I would eventually be put in line if I kept calling). After waiting on hold for about an hour I finally got through to an agent. I told her about the letter and gave her the info she needed to access the account, and then she put me on hold again for 15 more minutes.

When she came back she said that she didn't understand why the letter was sent and put me on hold for another 10 mins. When she came back on the line again she said it had something to do with the fraudulent return that was filed. I didn't fully understand what she was saying, but basically the fraudulent return somehow kept the real one from going through. She then said they had our return and everything was fine and we didn't need to worry about the letter. Even so, I still feel a little uneasy about the whole thing.

Well, I think you got the answer and it sounds like things are OK. Make some notes from the phone call with some details - the date and time of call, the agent's name if you remember it. Just it case you get another letter and have call again, you'll have that info handy to let them know you already called and the answers you got.

But I think you can breathe easy.

 

[Clell]

Well, I think you got the answer and it sounds like things are OK. Make some notes from the phone call with some details - the date and time of call, the agent's name if you remember it. Just it case you get another letter and have call again, you'll have that info handy to let them know you already called and the answers you got.

But I think you can breathe easy.

Yeah, I think so too. It's still worrying a bit though because there wasn't a lot of confidence in her voice. She almost sounded unsure about whether it was actually fixed. She didn't even seem confident about the explanation she gave me. lol

I don't have her name or ID, but I do have the time and somewhat of an understanding of what she told me. Hopefully if I have to call back that will be enough.

 

[Texas Proud]

But he knows that he mailed in the check with the return, so it's still worth asserting - telling them he knows that they got the return because the check was with it. They can get his assertion on record. Why would they bother to dispute it at this point?

Yes, but my point is that the only 'proof' the check provides is that money was paid.... if they do not have the return, they do not have it.... they will not let him have a pass on sending it to them at some point...


I actually had a problem with the IRS concerning the date a return was mailed... they said it was mailed late... I pointed out that I mailed 4 different returns for the companies at the same time and the other 3 were not mailed late... it took me almost a year to get a penalty waived because someone 7 years earlier had mailed a return late and they waived that one.... seems you only get one waiver..... but they finally agreed since they did not keep the envelope as proof that it was mailed late and not just delivered late....

 

[John Galt III]

I called the IRS 800 number, and waited a half hour to get someone. I was impressed that she gave me her last name and an employee number right away without my asking. She looked up my info and said they do have a return on file for me and they have received my payment, and that I can disregard the letter. I asked her why they would send out the letter in the first place, and she said she did not know. She also said they "just sent out a whole bunch of those letters". Thanks for all the replies!