problem with filing taxes

[chantpleure 0]

If this belongs in a different forum then please move it.

My partner and I have had nothing but trouble since we filed our taxes on Feb 21st. We were unable to e-file as I didn't have a SSN at the time (now I do) and didn't know when it would be coming, so we applied for an ITIN because the tax prep people advised us to. We do not owe taxes, we are owed $2500 by the IRS.

We received a letter from the state saying that they could not process our refund because there was no ITIN for me, but then a week letter we received our refund from them, with an ITIN number on it. So, we thought that our ITIN application had gone through and been approved. Then, approx 3 weeks later we receive a letter from the IRS office in Austin saying that they were unable to approve the ITIN application (form W-7) because there was no notarised copy of ID enclosed in the packet.

I called them and told them I had already received our refund from the state and when I told the operator the number that was on the letter from the state she got quite irate with me saying 'that is NOT your number, it does NOT belong to you', but it wasn't my fault. A day after this I received my EAD and so applied for my SSN, which I now have. So today my partner and I ran down to the IRS taxpayer advocate office who basically told us they can't do anything. So then we called the IRS office in Austin to talk to them about it who told us all we can do is make copies of absolutely everything and send it in to them, and they might maybe one day get around to looking at it.

We really need this money! Would it be criminal for us to refile? No one really seems to have a definite answer on this question.

HELP!

[bantam 0]

Have you considered filing a 1040X now that you have a SSN?

[Anh map 2,098]

Assuming you are thinking of e-filing, when a person e-files there is a short (couple of days) period before the return is accepted. I would think that the IRS computer would notice that your spouse's SSN shows up on two 2008 returns and not accept the electronic submission as there is already one in the system.

While it is frustrating, it does sound like the Austin office gave you the path to take.

[Tygrys 143]

If this belongs in a different forum then please move it.

My partner and I have had nothing but trouble since we filed our taxes on Feb 21st. We were unable to e-file as I didn't have a SSN at the time (now I do) and didn't know when it would be coming, so we applied for an ITIN because the tax prep people advised us to. We do not owe taxes, we are owed $2500 by the IRS.

We received a letter from the state saying that they could not process our refund because there was no ITIN for me, but then a week letter we received our refund from them, with an ITIN number on it. So, we thought that our ITIN application had gone through and been approved. Then, approx 3 weeks later we receive a letter from the IRS office in Austin saying that they were unable to approve the ITIN application (form W-7) because there was no notarised copy of ID enclosed in the packet.

I called them and told them I had already received our refund from the state and when I told the operator the number that was on the letter from the state she got quite irate with me saying 'that is NOT your number, it does NOT belong to you', but it wasn't my fault. A day after this I received my EAD and so applied for my SSN, which I now have. So today my partner and I ran down to the IRS taxpayer advocate office who basically told us they can't do anything. So then we called the IRS office in Austin to talk to them about it who told us all we can do is make copies of absolutely everything and send it in to them, and they might maybe one day get around to looking at it.

We really need this money! Would it be criminal for us to refile? No one really seems to have a definite answer on this question.

HELP!

What about just filing an amended return (form 1040X)?

[Anh map 2,098]

1040X is worth a try though the changes are supposed to have a corresponding line number and the numbering begins after the line where the SS numbers are entered.

[Tygrys 143]

1040X is worth a try though the changes are supposed to have a corresponding line number and the numbering begins after the line where the SS numbers are entered.

Yeah, you're right... A good tax advisor would be probably the best way to go.

[chantpleure 0]

we'll see what they say.

On the form I received from the Austin IRS office they say that I have to reply within 45 days or they'll reject the application. I'm thinking that we should wait for that deadline and then refile?

[Nich-Nick 3,353]

You can't file jointly with a non-resident alien (no greencard yet) unless you meet certain criteria and write a statement. You also have to include the income she earned in her country during the whole year 2008 if you do file jointly, then exclude it on a form 2555.

You also can't claim her $600 Recovery rebate credit unless she has a SSN at the time of filing.

I don't know if you did all those things before filing jointly or knew you could get the additional $600 so wanted to suggest those things and that you re-file or do a 1040x with a SSN.

This post explains most of that without re-writing it here.

http://www.visajourney.com/forums/index.ph...t&p=2828055

Edited May 2, 2009 by Nich-Nick

[chantpleure 0]

according to Figure 1-A I am considered a resident alien for tax purposes. I didn't know about the recovery rebate credit.. sounds like the tax company we went to didn't really know how to treat me.

[Nich-Nick 3,353]

From a February post of mine:

Remember last years Tax Stimulus Payment (for 2007 filers) where you got a rebate up to $600 per person/$1200 per couple if filing joint? Well for 2008 there's the Recovery Rebate Credit. So if you didn't get your rebate last year (because you didn't file), or didn't get the full amount because your income was too high then you might get some more for the 2008 return under the new Recovery Rebate Credit.

In my case, my income was too high to get the whole $600, so I got around $375. But for the 2008 return, no longer single and filing jointly with my spouse, I will get the rest of the $600 I didn't get last year, plus we get Nick's $600 because he didn't get any last year. I read it and tried it out on turbo tax and it worked out that way. So even if you got the whole $600 last year as a single tax payer, you should be able to collect your spouses $600 this year.

We did indeed get the Recovery Rebate credit. It isn't a check like people got last year (for 2007 tax year, checks mailed summer 2008).

It is a credit taken on the tax return (line 70), so your $2500 refund would be $3100 most likely. A SSN is required to get that.

No the tax companies aren't well versed in new immigrant type things it seems. Several people reported similar things with the more popular tax prep people. I got the info by reading straight from the IRS Publications and used Turbo Tax Basic...cheapest version to do the forms and calculations. You would have to print a return and mail it because of having to include your statement signed by both saying you wish for NAME to be treated as a residient alien for tax purposes. If she had income in 2008, you show it as other income, but then the Form 2555 or 2555EZ (easier) is where you exclude her earnings up to about $84,000 US dollars. That's the max. If she only live in her country half a year, then the exclusion is half that. It's based on # of days, which the exclusion form will ask you. So while you "show" her income in order to file joint, you also get to subtract it back out and don't pay US tax on it.

Edited May 2, 2009 by Nich-Nick

[I'm Gone 60]

Were you calling the main IRS number 1-800-829-1040 or the ITIN office? If you were calling the main number I would call the ITIN number 1-800-908-9982. If you have been issued an ITIN and now have an SSN the ITIN needs to be voided.

http://www.irs.gov/pub/irs-pdf/p1915.pdf

What steps do I have to take when I have an ITIN and become eligible for a Social Security Number?

Make proper application for a SSN and upon receipt advise the IRS ITIN Unit in writing of your new SSN. The new SSN will become the primary number and must be used for all future filing purposes. The IRS will void the ITIN. All prior tax information under the ITIN will be associated with the new SSN.

[chantpleure 0]

I called the ITIN unit, the person I spoke to seemed unaware about voiding it now that I have a SSN. I didn't directly ask her that question though, I think I said something like 'Now that I have a SSN can we forget about filing for an ITIN' but I think because my ITIN application is still 'in process' they can't cancel it. I'm not sure. I will try calling again tomorrow and draft a copy of the letter Nich-Nick suggested.

[chantpleure 0]

This my draft,

Please find enclosed form 1040X, an amended tax return form for (me) and (my husband). (me) is considered a resident for tax purposes according to figure 1-A on page 5 of Publication 519 U.S. Tax Guide for Aliens.

Not sure what else to say, should I list the reasoning behind me being considered a resident for tax purposes? (days present in the US)

Edited May 4, 2009 by chantpleure

[Nich-Nick 3,353]

It's not clear how long you've been in the US. Looking at when you were married, it seemed like it could have been for a short time. If you were here 183+ days and were shown on the flowchart thing to be a resident alien, then no statement is required. Only if you were here less than the number of days stated in the substantial presence test do you need to "elect" to be treated as a resident alien (because those people have neither green card or substantial presence and are non-resident aliens.) Be sure and use the SSN and claim the Recovery Rebate.

[chantpleure 0]

During 2008 I was in the US for 330 days

During 2007 I was in the US for 14 days

During 2006 I was in the US for 85 days

Edited May 5, 2009 by chantpleure