On the 7/18/22 podcast Clark mentioned the 20 million people still waiting for tax forms to be processed, and the inability to get hold of anyone at the IRS. I believe he also said of one of the demand letters he received something along the lines that he wasn’t just going to sit around and do nothing.
Well, he wandered off into a rant and provided no actionable information.
I am one of these 20 million people. In brief, I am trying to collect a $2K refund due my mom’s estate from TY 2020 (She passed in mid 2021). Unfortunately due to a UK pension, her returns needed to be filed on paper and not electronically. Of course, now the physical address and bank info provided for the refund are no longer valid. We have submitted various forms (I think one was “1310”?) but cannot get anyone to respond.
My next step is probably to write my congressman. Any other advice?
My cousin is a CPA, she does my taxes, she seems to have a back channel with IRS, or maybe at least knows exactly how to file the right documents with them so that eventually problems are resolved, with no back and forth. So I would ask a CPA for help.
I think the Dems Deficit Reduction Bill or whatever calls for some big-time additional funding for the IRS. Funding that’s been roadblocked by, you fill in the blanks, for decades. Some estimates say that the lack of enforcement has led to $175 billion in uncollected taxes yearly. Who knows, it might even give relief to the smaller fry looking for expedited refunds on more simple returns.
E-file would not work so mailed my return on 3/15. It’s now been almost five months and still does not appear. Luckily, it does show the check I wrote for payment due.
I always attempt to be under withheld, but within the safe harbor rules. If I don’t succeed, the amount is usually small and I just apply the overpayment to current year taxes.
jimtoo, absolutely agree. In this case though I came in high on the estimated taxes. I was surprised myself. If I remember, it was probably mostly because I did not understand how mom’s social security was taxed. I thought it was all taxed, but I guess there’s a cap at 85% of the benefit. There might have been a second smaller error in my estimating also, I don’t remember. I’m usually closer and do try to owe a small amount rather than be due a refund large or small. It wasn’t intentional.
Im with @jimtoo in that I always try to owe at the end of the year. Unfortunately, you are dealing with one of our many incompetent Federal departments. It probably feels a lot like pounding sand…
The Treasury Direct website for buying I -Bonds (which are hot now) is atrocious because of no funding. It looks like 1999 Internet 1.0. If you need service you get an email saying to expect service in SiXTEEN WEEKS. And yet so many corporations pay no income tax, and many extremely wealthy people pay no taxes due to “carried interest”. Google it. You’ve been getting cheated for decades. I won’t mention party names, and it doesn’t all land on one party. But we have to demand better government, which has to be funded with fairer taxation.
We need to demand a smaller government that requires less funding so we can simplify our tax policy and have EVERYONE pay into the system. The truth is that none of our career politicians really want to do this…so we end up with this bloated, inefficient, financially irresponsible government.
Unfortunately, we never got anywhere. My sister was executor and I think by that point she was exhausted. I asked her to write her congressman, but I don’t think she did.
It’s not nearly as simple as you describe.
Yes… much of our government is inefficient and irresponsible.
Yes… much of our government is over-funded and bloated
Yes… our tax policy can and should be simplified.
Yes… many, maybe most, of our career politicians do not want things to change
But… the facts are:
Yes… much of our government inefficiencies due to underfunding and inattention
Yes… many of our politicians accept huge “political campaign contributions” from lobbyists.
Yes… we need term limits for the legislative branch.
Yes… our government has both a spending and an income problem
Yes… some government departments are too large, and some are too small
Yes… It’s a complicated messy process, but it’s all we have.
When dealing with almost any public-facing system the squeaky wheel usually gets attention first. When you’re faced with a broken system, it’s time to be a PITA, be the loudest squeaky wheel.
Guess what, it has been a year and my friend checked the IRS site this morning and they are now saying tax refund is processed so we will see if she has the check in the next few weeks. Your sister might want to check the IRS site to see if any action on the estate.
Good luck.