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Amended tax return question
Old 06-07-2021, 08:31 AM   #1
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Amended tax return question

Hi all,

I filed my 2020 tax return in March. On that return, I included a 8962 which included numbers from four different policies. I have 1095As for three of the four. I never received a 1095A for the fourth policy and my inclusion of the numbers for that policy is an error. It is an error because the fourth policy was a catastrophic policy which does not qualify for PTC.

I received an IRS letter dated June 4 saying they "need more information" and that they "haven't received information from the [marketplace] indicating that you or anyone listed on your tax return was enrolled..." and to "send us a copy of your forms 1095A...to support the amounts you reported on Form 8962". They also say "Do not respond with a Form 1040X". Finally, "If we don't receive a response from you, we may have to increase the tax you owe or reduce your refund."

So I'm not sure how to proceed.

I tried calling the number. They let me choose 1 for English and then hung up on me.

I'd like to file a form 1040X. I know how to, I know what I need to change, I can e-file it, etc. (I'm an AARP Foundation Tax Aide preparer - maybe I shouldn't be ).

I could wait and let them straighten it out, but I'm a bit concerned that they would throw out my entire 8962 and not just reduce it by the relevant amounts for the fourth erroneous policy.

I could respond to the letter, but I'm not sure how. They say to enclose only the information they request and a copy of the letter. I think I could write and say, yeah, I screwed up, but just take off the fourth policy and leave the other three on there.

Any advice / wisdom / knowledge? (@cathy63 or @pb4uski?)

Thanks!
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Old 06-07-2021, 08:49 AM   #2
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At this point I'm leaning towards writing a letter, saying I messed up, providing the three 1095As I did receive, a revised 8962, and mentioning what I think my adjusted refund amount should be.

I'm on hold with the IRS to try to make an appointment, and also reading the online general help at IRS.gov.

ETA: My tax return in this area is easy - my refund is going to simply be my 8962 net premium tax credit minus a small amount of regular income tax due.
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Old 06-07-2021, 09:08 AM   #3
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Originally Posted by SecondCor521 View Post
At this point I'm leaning towards writing a letter, saying I messed up, providing the three 1095As I did receive, a revised 8962, and mentioning what I think my adjusted refund amount should be.

I'm on hold with the IRS to try to make an appointment, and also reading the online general help at IRS.gov.

I think this is a good plan. Since IRS is singularly focused on your 8962 form, and the missing 4th document. Just play their game by their rules and answer the inquiry letter, with your explanation of what you did initially and the new revised information and refund amount. IRS computers are good at cross referencing information between the sources, but no so good at figuring out what needs to be done.
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Old 06-07-2021, 09:12 AM   #4
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At this point I'm leaning towards writing a letter, saying I messed up, providing the three 1095As I did receive, a revised 8962, and mentioning what I think my adjusted refund amount should be. (My tax return in this area is easy - my refund is going to simply be my 8962 net premium tax credit minus a small amount of regular income tax due.)

I'm on hold with the IRS to try to make an appointment, and also reading the online general help at IRS.gov.
I think the letter you are planning is exactly the right thing to do. Keep it simple! If that works then all is well. Contrary to popular opinions, they do have reasonable staff there and many times, a simple explanation will suffice. When it doesn't, then you can always take bigger action. Chances are, this will work out just fine.
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Old 06-07-2021, 09:13 AM   #5
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Thanks for the reply. And right, I think that makes sense.

The only thing is that the letter says they didn't receive *any* 1095A forms. Which is probably inaccurate; they should have received the three that I did. I'm sure it's a form letter and thus is probably the closest one for the present situation, but I don't know how much to quibble / clarify.

At this point I'm going to aim to be as clear, concise, and precise as possible. I know the IRS folks are really overburdened and I want to resolve the error as efficiently as possible for all concerned. I'd also like my refund, of course.

I wonder if they'll pay me that 3% interest in this situation, since the error was mine. I guess I'll find out in about 6 to 8 weeks.
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Old 06-07-2021, 09:19 AM   #6
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I'm impressed with the speed of the letter. I agree that just answering their questions is the way to proceed. I would probably use certified mail.
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Old 06-07-2021, 09:33 AM   #7
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Agree... since they specifically requested that you not file a 1040X I would not file a 1040X.

What I would do it to write a letter that is substantively a 1040X explaining that you messed up and showing the result if you had excluded that last 1095-A and outling the revised amount of your refund. I would include in the letter a table similar to the 1040X showing the relevant numbers as filed and as revised.

And include copies of the 3 legit 1095-As that you are including in your revised numbers and a revised 8962.
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Old 06-07-2021, 09:35 AM   #8
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I'm impressed with the speed of the letter. I agree that just answering their questions is the way to proceed. I would probably use certified mail.
DS got a letter with similar timeframe last year.... we just forgot the 1095A since he had shifted to his employer plan early in the year... turns out that he was due a larger refund.
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Old 06-07-2021, 10:29 AM   #9
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I'm impressed with the speed of the letter. I agree that just answering their questions is the way to proceed. I would probably use certified mail.
Meh. I e-filed 3/17 and the letter is dated 6/4. Not bad given the circumstances, but I would not call it speedy.
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Old 06-07-2021, 10:30 AM   #10
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Originally Posted by pb4uski View Post
Agree... since they specifically requested that you not file a 1040X I would not file a 1040X.

What I would do it to write a letter that is substantively a 1040X explaining that you messed up and showing the result if you had excluded that last 1095-A and outling the revised amount of your refund. I would include in the letter a table similar to the 1040X showing the relevant numbers as filed and as revised.

And include copies of the 3 legit 1095-As that you are including in your revised numbers and a revised 8962.
Thanks. That's about what I'm going to do. The 1040X table is a good idea.
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Old 10-12-2021, 05:47 PM   #11
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Sent the letter June 17, 2021 with all the info.

Sometime in the past few days the IRS opened the letter. Apparently they're reading it now.

Still no ETA on my (adjusted) refund.
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Old 10-14-2021, 09:56 AM   #12
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I know many of you had a sleepless night wanting an update on my situation from a few days ago.

The IRS appears to have more or less agreed with my pseudo-amended return. Today I wake up to find a refund in my checking account.

But it's only for about half of what I expected. Plus interest on that about half.

I checked my IRS transcripts and it appears that they agree they still owe me the other half.

Question of the day: Why would the IRS split my refund into two pieces?
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Old 10-14-2021, 10:00 AM   #13
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They are waiting for payday and afraid they might bounce a check. Alternatively they are trying to mess with head.
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Old 10-14-2021, 10:14 AM   #14
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Heh. I googled and found a general explanation that they're probably withholding part of it in order to do some sort of verification on me. I don't know what they could possibly be verifying, but the Internet seems to say that the IRS will send me a letter within 14 days.

The good news is I was able to figure out how much of the partial refund was interest (3% back to 4/15/2021 - sweet!), and the amount they still agree they owe me makes it seem that they agreed with my amended figures. So I got that goin' for me.
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Old 10-14-2021, 10:50 AM   #15
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Heh. I googled and found a general explanation that they're probably withholding part of it in order to do some sort of verification on me. I don't know what they could possibly be verifying, but the Internet seems to say that the IRS will send me a letter within 14 days.

The good news is I was able to figure out how much of the partial refund was interest (3% back to 4/15/2021 - sweet!), and the amount they still agree they owe me makes it seem that they agreed with my amended figures. So I got that goin' for me.

Which half of you do they need to verify?
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Old 10-14-2021, 11:15 AM   #16
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I took a closer look and have an explanation that sort of makes sense.

My refund was really due to two different refundable tax credits: the AOTC (on Form 8863) and the ACA net premium tax credit (on Form 8962).

The amount the refunded me appears to be for the AOTC. They still appear to owe me for the ACA net premium tax credit.

So I still don't know what they need to verify with the ACA net premium tax credit. They presumably received all of the 1095-A's originally. I sent them copies of the 1095-A's again when I sent my response letter. On another IRS transcript, it seemed to me that their computer calculations agreed with my calculations in my response letter.

I'm mildly curious as to why they seem to agree they owe me the second half on the one hand, but need to verify something on the other hand. But I'm not curious enough to get up at 4:59am and start speed-dialing the IRS offices to wait on hold for two hours to ask someone who probably won't know the answer anyway.

I guess I'll wait for an explanatory letter or the additional refund.

:shrug:
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Old 10-14-2021, 11:38 AM   #17
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...Question of the day: Why would the IRS split my refund into two pieces?
The other piece of your refund would have exceeded the debt limit?
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Old 10-14-2021, 11:49 AM   #18
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The other piece of your refund would have exceeded the debt limit?


I will say, though, the connection between my IRS refund and our national checkbook situation has crossed my mind a time or two.
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