IRS turned down my $7500 tax credit!

Discussion in 'Clarity' started by Valente, Jan 19, 2020.

  1. Valente

    Valente Active Member

    I did my taxes for 2018 and my accountant forgot to add my $7500 tax credit for my 2018 Clarity purchase. The taxes I owed were $10,000 so he submitted an amended return and the IRS told me they cannot accept the amended return because I cannot go from "taxable to non taxable..." whatever that means. In other words....Once I submit a tax return that I owe money they cannot reduce the amount of what I owe even with an amended tax return. My response was WTF? Has anyone every heard of such a stupid thing? My accountant suggested a lawyer! I really hate the IRS!!
     
    k b and Alex0913 like this.
  2. insightman

    insightman Well-Known Member

    It seems that your forgetful accountant should be footing the bill for the lawyer.
     
    DaleL and K8QM like this.
  3. Landshark

    Landshark Active Member

    In this situation the accountant wasn’t the only forgetful person. Live and learn.
     
  4. JCA

    JCA Active Member

    That definitely doesn't sound right -- you definitely should be able to submit a return that reduces the tax owed (resulting in a refund if you withheld + paid the original amount). https://www.irs.gov/newsroom/top-10-tax-tips-about-filing-an-amended-tax-return explicitly says "You can also amend your tax return if you forgot to claim a tax credit or deduction."

    I think you need to review everything this guy did -- do you have copies of the actual 1040X and 8936 forms he sent, and of the letter the IRS replied with? My guess is he missed something, used a wrong form from the wrong year perhaps, or something else. Might not be a bad idea to have a different tax guy take a look.
     
  5. Valente

    Valente Active Member

    According to the IRS, he submitted the tax credit incorrectly and it cannot be amended.
     
  6. DucRider

    DucRider Active Member

    Just to clarify...
    Is the accountant telling you the IRS rejected the amended return?
    Or have you gotten something from the IRS directly?
     
    DaleL likes this.
  7. Valente

    Valente Active Member

    I got a letter from the IRS claiming that they have refused the amended return. I need a new accountant.
     
    David Towle likes this.
  8. Pushmi-Pullyu

    Pushmi-Pullyu Well-Known Member

    I agree you need a new accountant. In the meantime, call the IRS directly and ask what the heck is going on.

    Here's an article to help you get past the minefield of the automated answering system, so you can talk to a real live person. I don't see a date on the article, so I hope the info is current!

     
    4sallypat and DaleL like this.
  9. Landshark

    Landshark Active Member

    It is ultimately your responsibility to review the tax return for errors prior to signing the document and submitting the return.
     
    DaleL likes this.
  10. Robert_Alabama

    Robert_Alabama Well-Known Member

    Sandroad, DaleL, cokeb5 and 1 other person like this.
  11. JCA

    JCA Active Member

    It sounded like you had both issues over the car's purchase and service date (due to the multiple contracts the dealer created), and special tax situations because of your business operations where you didn't owe tax at all (or not enough) in 2017 but did in 2018. It would help to tell us exactly what form was filed and when, and maybe paste the wording of the IRS letter.

    If the accountant originally filed Form 8936 with your *2017* taxes (or amended them for 2017) saying the car was put in service in 2017, even if you didn't owe enough to take the full credit, then it wouldn't surprise me if the IRS red-flagged and disallowed re-filing/amending for the same car now as a 2018 in-service date. Or if he filed it as a 2018 form or amendment, but put 12/31/17 as the service date, that would also not result in a refund.

    There are other possibilities too that are very different from a more straightforward "forgot/didn't claim the credit, paid+withheld say $10,000 in taxes for 2018, amended to claim the credit" that is as far as I can tell allowed and would result in the IRS sending a check for $7500.
     
    Mesa and DaleL like this.

Share This Page