Targeted by the IRS?

[jldavid47]

They don't do a criminal background check ?

This could be a great job for someone interested in certain criminal fraud activities

I don't remember for sure but I believe they do run checks if you are offered a job. Some people take the course with no intent to ever work there. The "no diploma" policy is for the class. Not sure what the requirement is to be employed.


Also, H&R Block has a premium service for complex returns and I'm sure there are CPAs there.

 

[FloridaJim57]

Yes, it's true that AARP Tax-Aide will do your taxes for free, but that doesn't mean you won't get the same letter next year. We have a couple of clients at my site who get letters asking for hard copies of the docs that prove their withholding (yours may be slightly different if it's asking for proof of income vs withholding). One of them has her only withholding from Social Security and the IRS still asks for a hard copy a week or so after we e-file her return. There's no EIC or Sched-C or anything else that might raise flags about fraud on these returns, so we're bewildered.

We have speculated that it might be because they are both over-withholding and getting huge refunds as a percentage of their AGI. We always try to get them to withhold less, but some people really want a big refund. I have also wondered if they might have been randomly selected for some kind of study the IRS is doing.

Everything you said makes sense but I honestly don't think I was "randomly selected" three years in a row. That is pretty much statistically impossible. Don't you agree?

 

[braumeister]

Everything you said makes sense but I honestly don't think I was "randomly selected" three years in a row. That is pretty much statistically impossible. Don't you agree?

Perhaps that meant randomly selected for a long term (annual followups) study.

 

[cathy63]

Everything you said makes sense but I honestly don't think I was "randomly selected" three years in a row. That is pretty much statistically impossible. Don't you agree?

As someone who's sat on six juries, no, I don't agree that it's statistically impossible to be randomly selected from a pool of candidates multiple times in a row.

But I also do not think that's what happened to you. I think it's remotely possible that you and my clients were all selected a few years ago for some multi-year study. I think it's more likely, at least in my clients' cases, that getting a refund greater than x% of your AGI raises a red flag at the IRS and makes them want to look at documents before they remit the payment.

If you want to experiment, you could try one of the following and see what happens next year:
- change your withholding so you'll owe a few dollars
- wait and file your return right at the end of March

 

[Spock]

As someone who's sat on six juries, no, I don't agree that it's statistically impossible to be randomly selected from a pool of candidates multiple times in a row.
...

Jury selection is anything but random starting with the restricted eligible pool (master jury file) to chose from (voter registration/active voter, motor vehicle records, age restrictions, prior medical and hardship exemptions). Then look at the other people sitting in the cattle pen that were selected from the master jury file to show up.

Finally look at the make-up those selected to sit on a jury with you.

They use the word "random" in the process description, but the results are a loooong way away from random.
I can go back and plot the years where I and my wife got a jury summons... the distribution is not random.

 

[cathy63]

Jury selection is anything but random starting with the restricted eligible pool (master jury file) to chose from (voter registration/active voter, motor vehicle records, age restrictions, prior medical and hardship exemptions). Then look at the other people sitting in the cattle pen that were selected from the master jury file to show up.

Finally look at the make-up those selected to sit on a jury with you.

They use the word "random" in the process description, but the results are a loooong way away from random.
I can go back and plot the years where I and my wife got a jury summons... the distribution is not random.

I was referring to the part where they literally draw names from a bowl. If there are 50 people in a room with me, and 50 slips in the bowl, and my name is always pulled in the first 6, that's a fairly rare statistical event but it's obviously possible because it's happened to me 7 times (once I got booted during voir dire and didn't have to serve).

 

[PatrickA5]

Is it common for a CPA to work at H&R Block? I never thought of their front line employees being educated to that level.

I just looked it up, you have to take and pass a 60 hour tax course. You don't need a GED to take the exam.

"5 – Can anyone take the course?

H&R Block requires students to be 18 years of age to attend the Income Tax Course. A GED or diploma, however, is not required."

https://www.hrblock.com/tax-center/around-block/become-tax-preparer/

I worked for Block as a retirement job for about 8 years. I'm a CPA. In my office, we had 3 retired CPA's, one tax attorney and 2 EA's. We also had a couple of people that would have had a hard time holding down a job at Arby's. I always cautioned my clients to make appointments and not just walk in and take whoever is available.

 

[FloridaJim57]

As someone who's sat on six juries, no, I don't agree that it's statistically impossible to be randomly selected from a pool of candidates multiple times in a row.

But I also do not think that's what happened to you. I think it's remotely possible that you and my clients were all selected a few years ago for some multi-year study. I think it's more likely, at least in my clients' cases, that getting a refund greater than x% of your AGI raises a red flag at the IRS and makes them want to look at documents before they remit the payment.

If you want to experiment, you could try one of the following and see what happens next year:
- change your withholding so you'll owe a few dollars
- wait and file your return right at the end of March

What would waiting till the end of March achieve? I missed the point.

 

[cathy63]

What would waiting till the end of March achieve? I missed the point.

By the end of March, the IRS will have received their copy of the 1099-R from your pension, and presumably the SSA-1099s as well. Once they have their own copies, they shouldn't have to ask for yours to verify the data.

 

[Texas Proud]

Is it common for a CPA to work at H&R Block? I never thought of their front line employees being educated to that level.

I just looked it up, you have to take and pass a 60 hour tax course. You don't need a GED to take the exam.

"5 – Can anyone take the course?

H&R Block requires students to be 18 years of age to attend the Income Tax Course. A GED or diploma, however, is not required."

https://www.hrblock.com/tax-center/around-block/become-tax-preparer/

The vast majority of returns are very simple and someone trained in the H&R block program can enter that info... no need for a CPA....


Plus, you do not need a CPA to do taxes even if not employed by H&R block.. only if you present yourself AS a CPA... now there is work (not tax) that you have to have a CPA to do and if you do that work and are not one you can be in trouble...

 

[omni550]

I prepared my 2022 taxes using TurboTax (as I have done for decades) and e-filed with the IRS and my State on Jan 24. I received my State refund on Feb. 8. I am still awaiting my significant (>$12K) IRS refund.

As a bit of explanation as to why I am due such a large IRS refund, it is a result of 1) my over-withholding of taxes (2022 was my first year taking RMDs and I wanted to be sure to have paid sufficient taxes on my required tIRA withdrawals) and 2) I had also planned to buy $10K of I-Bonds with the refund, much like I had done in 2021, so my quarterly estimated tax payments were larger than my 'income' would warrant.

After rethinking things, when I filed my taxes I decided NOT to purchase I-Bonds with my IRS refund. Instead, I wanted my IRS refund deposited to my bank account. As it has been a month since I filed, I am getting the feeling that this large refund due may have triggered my tax return for a 'closer look'.

Other than starting RMDs, nothing significant had changed in my tax filings from 2021.

omni

WooHoo! In my checking account online, I see that my IRS tax refund deposit will be arriving tomorrow.
omni

 

[lucky penny]

We have speculated that it might be because they are both over-withholding and getting huge refunds as a percentage of their AGI. We always try to get them to withhold less, but some people really want a big refund. I have also wondered if they might have been randomly selected for some kind of study the IRS is doing.

This is interesting. I got one of those IRS letters last year asking for documentation as to the withholding amounts. The previous year I'd withheld too little, so for last year in an effort to ensure that didn't happen again I greatly increased the WH, but I overdid it. Since I'd retired recently I wasn't sure how things would play out, plus I wanted to make sure there was enough for an I-Bond with my refund. When I supplied the documentation, everything was fine, but it did take extra months to get the refund & bond.

Based on that experience, I reduced my WH so this year's refund is much less, though I still withheld too much & plan more adjustment for the future.

 

[FloridaJim57]

By the end of March, the IRS will have received their copy of the 1099-R from your pension, and presumably the SSA-1099s as well. Once they have their own copies, they shouldn't have to ask for yours to verify the data.

If I do just that and they still ask for documentation (that would be the fourth year in a row) I think I can safely assume I am flagged for some occult reason. I spoke to a lawyer friend of mine in NYC (not a tax lawyer) and told him about the situation. He seriously asked me "do you have any family members in organized crime?". I do not.

 

[FedRetired50]

Everything you said makes sense but I honestly don't think I was "randomly selected" three years in a row. That is pretty much statistically impossible. Don't you agree?

Somebody will end up on the far end of the bell curve, so it is statistically possible.

 

[boont]

Never File Electronically

I always fill out and send in paperwork. No digital filing. Saves me a lot of grief. Has to be hand done at the IRS. Not bloody likely they will ever get to you.

 

[Brat]

YEARS ago I was audited by the IRS. After review, they owed me money. I told the auditor that I was disappointed and wondered if I had made similar errors in years past.

Now I use H&R Block software and do a friend and my brother's taxes gratis. So far, so good.

 

[FloridaJim57]

Update from OP

On 2/1 I filed my income tax electronically. They were done by a man who is a CPA at H&R Block. He has done my taxes for the past three years (at H&R Block). Since I live in Florida I only file Federal returns. I file jointly with my wife and are taxes are incredibly simple: the witholding for my Social Security, for my wife's Social Security, the withholding for my pension, and the interest earned on checking and savings accounts. That's it. Yesterday, like the past two years before, I received a form letter from the IRS office in Salt Lake City instructing me to mail them hardcopies of all original income statements. This is the THIRD YEAR IN A ROW they have demanded this. In the past two years, about ten days after I mail it in, my refund is deposited in my checking account. They have never once disputed anything about my taxes. Since I just mailed the stuff in yesterday I don't know what will go down this year. I did not cheat one iota and my taxes are 100% honest and accurate. I don't mean to sound paranoid or put upon but I honestly feel I am being targeted and for the life of me I do not know ehy. I spoke to an AARP tax expert at the library and she asked if the same person did my taxes all three years. I said yes, he did. She said he may be the one reg flagged not me. Whatever, I am really sick of this. They do not give any contact number or contact name so I can ask if I am doing something wrong in my filing. Just a form letter.

UPDATE: Today, 3/11 the online WHERE'S MY REFUND advised that my refund has been approved and should be deposited by 3/15. So for the third year in a row they did not question or challange my refund amount nor did they explain why they do this to me each year for three years running. They have nothing better to do over there in Salt Lake City?

 

[braumeister]

Bummer of a birthmark, Hal.