In article <cfc94c95-2450-4aaf-b82d-9bdb179abbc0[at]x29g2000prf.googlegroups.com> ,
<rck9876[at]yahoo.com> wrote:
- quote -


Sounds like you understand completely. Nothing we can do about the
stress or mess created by te IRS, but try to work through it. If you
used a paid prefesional preparer, you might have been able to turn
over dealing with the IRS to them, but at this point, you seem to
understand what to do quite well.
--

ArtKamlet at a o l dot c o m Columbus OH K2PZH

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Apr 30, 6:22*pm, rck9...[at]yahoo.com wrote:
- quote -

Thank you for your responses. When I used the $51,000 as base to
recalculate the taxable benefits (without using the LSR mehtod), I
came up with the amount that they indicated within 5 dollars. It
looks that somehow they didn't note the "LSE" that I wrote on the left
of line 20a. I'll contact them by phone and hope to resolve this by
phone. We are concerned that if we contest the amount, they may start
looking at other areas to find errors and ask for documents that are
not related to the SS benefits in question. Although I am sure that
other areas are accurate and we can provdie all the documents, the
process may become very stressful since we are stressed as is now.
What is your thought on this? Thank you again for your help.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

<rck9876[at]yahoo.com> wrote in message
news:72ccaaff-b5e3-448b-84a3-894a19ab05b1[at]y6g2000prf.googlegroups.com...
- quote -

The amount of taxable SS benefits, when it is not a simple RRB payment over
its normal schedule (but includes things such as multi-year payments, or
repayments of excess back to SSA) is something that the IRS ALWAYS SEEMS TO
SCREW UP.

Your explanation was adequate - write it up and send it in.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

In article <72ccaaff-b5e3-448b-84a3-894a19ab05b1[at]y6g2000prf.googlegroups.com> ,
<rck9876[at]yahoo.com> wrote:
- quote -


If you did not use the LSE procedure and worksheets, would that result
equal the IRS result?


If so I would try to call them at the number in the notice.



With luck just speaking to someone there and noting you elected LSE
and apparently the IRS had not noticed this, will be all you
need to do to get them to correct this.


If you can't reach a knowledgeable person at their contact number, write
a reply and attach the notice and also a copy of the worksheets for
each year. You must use the worksheets for all involved years.
send all this to the address on the notice.


In your reply state you received their notice and you do not agree
with their calculations because you used the LSE procedure to
calculate tax based on yearly social security income, and they did not.

Advise them your calcualtions used LSE and that you have attached the
worksheets for each year and to notify you that they agree with your
calculations and have closed this issue.


They might never reply, but hopefully thy will close the issue.
--

ArtKamlet at a o l dot c o m Columbus OH K2PZH

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

We received an IRS tax notice saying that they corrected our joint
return and we owed additional $3,000 in taxes. They corrected my
wife's taxable social security disability benefits on line 20b of the
1040 form. My wife was injured at work in 2005 and was receiving
worker comp benefits in 2005, 2006, 2007 and part of 2008. She
applied for social security disability in 2007 and the application was
on hold since she was receiving workers comp benefits. In early 2008,
worker comp cut her off. In September 2008, social security started
paying her disability benefits. When we received her 2008 SSA-1099
statement, although she was only paid about $6,000 gross in social
security benefits, the SSA statement shows over $51,000 as income in
box 3. After asking a couple of tax preparers about this, I found out
that social security made the disablility benefits retroactive to
2005, and all her worker comp benefits in previous years became
taxable in 2008. I read Publication 915 (social security benefits)
and found a section on Lump Sum Election. It says that if the box 3
amount in the SSA statement included previous years' benefits, and box
5 of the statment shows a breakdown of the benefits by year (which it
does - it shows the 2005, 2006, 2007 and 2008 amounts), we could re-
calculate the taxes using her 2005, 2006 and 2007 incomes based on the
itemized amounts by year shown on box 5 of the SSA statement. We got
married in 2007. Because of my income, her benefits in 2007 and 2008
were fully taxable (at 85% maximum). However, for 2005 and 2006, she
was single and her only incomes were from worker comp (now converted
social security disablity), we would not owe taxes on the benefits
that she received in 2005 and 2006 since her incomes were too low. On
our tax return, I reported $28,000 as taxable income for the benefits
received in 2007 and 2008 on line 20b and wrote "LSE" (as lump sum
election) next to line 20a as instructed in Pub 915. However, IRS
corrected the amount to $44,000 (which is based on 85% of the $51,000
that she received from 2005-2008). So now we owe additional $3,000 in
taxes.

Before I contact IRS, could you tell me how we should proceed
addressing this and what implications that we may have by contesting
the amount? I think I did the calculaitons correctly according to the
Pub 915, but I don't want to get into any trouble since this situation
has never occurred to me before. We thank you for your help in
advance.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >