Combat Injured Vet Tax Fairness Act 2016
- Thread starter josephk
- Start date
Here's the chart, and determination of rate of interest from IRS, if anyone can simplify this please share.
rr-16-12.pdf
So I'm assuming you multiply that rate by the amount you're owed per year?
Not sure if its quarterly or yearly. I was hoping someone else might know.
Now that the IRS is back open, I was able to get a bit of information. I contacted 800 829 3676 and followed the menu to the tax transcript request.
I was told that they could not provide a transcript back that far (2007), but that I could request an account transcript. Apparently, it's almost the same thing just less detailed. I was then forwarded to another person (unsure of their number) that processed my request for an account transcript from 2007 & 08.
I know it's not much, but it is a bit more detail. I am hoping to get this done in time to file my yearly taxes w/o having to do another amended return for the this year too.
I was told that they could not provide a transcript back that far (2007), but that I could request an account transcript. Apparently, it's almost the same thing just less detailed. I was then forwarded to another person (unsure of their number) that processed my request for an account transcript from 2007 & 08.
I know it's not much, but it is a bit more detail. I am hoping to get this done in time to file my yearly taxes w/o having to do another amended return for the this year too.
Sorry for the late response. You can actually find the rates for each year online, but I believe it was anywhere between 4 and 8 percent. You do pay taxes at the end of the year on the interest portion only. It was huge adjustment on my taxes this year, but it was STILL way worth it! My accountant said "this refund must have been a long time ago, holy hell". I didn't do the actual calculation of interest, but 2002-2018, the interest was about 120% of the original amount withheld.
Good surprise to receive!!
I
Side note: I received a letter from the IRS asking for a rating on their service, so they're pretty serious about making sure veterans are happy with their service around this.
I would keep calling. The person I got had to get a supervisor. It wasn't the same as a true transcript (I believe they called it something else) what I received. It did have my AGI and what my refund back then was. I used that information and my DD214 to kind of figure it out. I must have done ok, because they didn't fight it. I actually think if I had my return from back then I probably would have gotten about $5k more, but I'm happy with what I got. Good luck! Maybe someone from the other number that's directly for this could help.
Side note: I received a letter from the IRS asking for a rating on their service, so they're pretty serious about making sure veterans are happy with their service around this.
Yes, that's what I got, too. It had enough info to go on.
What did you use to fill out the 1040x?
I received the transcript, but I still can't figure out how to fill out the damn 1040x.
Could either of you, or anyone that has successfully submitted for the exact amount, help me with filling out my 1040x......please
ah yes, i think had said that once before. sorry about that
@Cassdw70 can you provide guidance on how to properly fill out the 1040x to get the exact amount?
@Perci75
I had to go to the IRS.gov site and print out the instructions for the year of my original tax return (2002) for the 1040x. Then I used the transcript and my DD214 (with the original amount withheld) to piece together the 1040x. I'm still not sure I did it exactly correctly, to be honest, I did go to school that year and had some deductions for that, but had no idea what they were, which would have raised my refund a little, but the refund was good, so I won't complain.
The people at the number were very helpful, but I don't know that they can assist in the actual filling out of the 1040x. With the instructions it seemed fairly (even though, not completely) self-explanatory. The AGI (adjusted gross income) should be on the transcript and you'll need to know what status you filed that year (married filing jointly, married filing separately, single, head of household, etc) and how many dependents you claimed (I don't think that info was on the transcript if I remember correctly (I'm in the middle of a move so everything is literally in boxes and I have no idea where to find it). It was easy for me because I knew I wasn't married at that time and didn't have any children. The transcript will also tell you what your refund for that year was, that will be deducted from what you're expecting to get, as well. If you do this for the original amount, remember to set aside 30% of the interest, because Uncle Sam will get that back on your current return (2019 if you file before the end of this year), they'll count that as investment income. I was expecting it, but didn't realize I was going to lose my EIC for my kids or I would have waiting a month or so to file. I did mine in August or September and got my check in December, to give you an idea of the time-frame.
I'll help with whatever I can, but I don't know how easy it will be to do an explanation over the computer. I'll see if I have the paperwork on my old laptop. If I do, I'll black out my personal info and post it.
Can anyone please help. We have just been told over the phone my husbands claim for a refund has been rejected. He left the Army in 1992 and received two seperate checks. One for pay and one for disability severance. Both had taxes removed. And yes he is combat injured. The IRS are saying he did not report the DSP as taxable income on his tax return therefore he is getting nothing. Can they do this? How do they know? He said he filed correctly and paid that tax. What do we do now?
I would call DFAS and see what they say. Does he fall within the years that are covered? It seems that's about the cutoff, you'll have to check online, the information should be available. Other than that I don't have much help for you, other than to advise him attempt to call the numbers that are listed on this particular thread and follow those directions. Good luck.
It is my understanding that a transcript of the return might be available. A recent comment: “I had to go to the IRS.gov site and print out the instructions for the year of my original tax return (2002) for the 1040x. Then I used the transcript and my DD214 (with the original amount withheld) to piece together the 1040x.”
General.
This does not necessarily apply to your case, although the IRS has said that the severance was not reported on his tax return.
The initial collection of taxes on severance pay, a winning lotto ticket, or other lump sum payment is to ensure adequate taxation is in place. In many cases, some of the amount from the deduction is returned after the individual files his/her tax return and the actual effective rate of taxation is applied. Example: On a $10,000 winning lottery ticket, the state will of Colorado collected 25% for Federal tax and another percentage for state tax. I received much of that as a refund when I filed my income tax returns that year.
The collection in conjunction with payment does not negate the requirement to file a return.
Ron
Yes he is within the years covered. In fact he received the letter which was how we knew about it. We called the DFAS and they said to get a copy of his DD214 and a copy of his LES and then I guess he refiles for the refund. I am nervous. July is the cut off and we dont live in the USA. We cant get a copy of his taxes he filed and according to the Tax Advocacy people the IRS dont have records for the 1990s either. If that is the case I dont know how they could reject his claim for the basic 1750 dollars. After all, he got the severance, he paid the tax out of it so as far as I am concerned he is owed the money. I am feeling pretty stupid right now because I just dont understand. We are not the only people in this situation.
SHANTRA,
If he had to file a state tax return for the year the payment was made, that document (from the state) might include what is needed. Of course that is a long shot... After reading your rely, I was surprised that the IRS transcripts are only available for a certain number of years.
I hope your family receives the refund (and soon).
Good luck...
Ron
If he had to file a state tax return for the year the payment was made, that document (from the state) might include what is needed. Of course that is a long shot... After reading your rely, I was surprised that the IRS transcripts are only available for a certain number of years.
I hope your family receives the refund (and soon).
Good luck...
Ron
The problem seems to be if you don't get the right person on the phone at the IRS they'll tell you they can't give your a transcript back that far. They have a record they can send you (they initially told me the same thing, and I eventually got the right person). The record isn't a transcript, it's called something else that I can't recall right now, but it's a record of your (his) taxes from that year that you can use to build the 1040x. Best of luck. I hope you're able to get resolution.