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Posted by Harlan Lunsford on June 4, 2006, 12:54 am
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TaxmanHog wrote:
>> hlunsford wrote...
>> Today I amended the federal, Georgia and Alabama returns for
>> a client. Took me all of 25 minutes and charged him 75$ for
>> my time.
>>
>> But why did I have to amend? Because, on his business
>> income /expense worksheet for 2002, he included in gross
>> income, all of his business income plus his W2 income. So
>> this amendment reports about 30,000$ less schedule c income,
>> negates the original schedule se and also affects the
>> medical deduction on schedule a.
>>
>> What I'm wondering now, will IRS just process it routinely,
>> or might they notice the requested refund of 7,500$ and say
>> "Whoa now! wait a MINUTE?"
>>
>> time will tell.
>>
>> Sure, I have had plenty of amendments over the years, but
>> none exactly like this one.
> Just under the wire for statute!?
>
> Being as it is this close, it will be scrutinized, full IRP
> doc review (again)!
>
> The clients error might have been reviewed the automated
> under reporter system.
>
> The TE may have screened & closed this issue a couple of
> years ago, closing it as missing wage entry found as exact
> differential match on Schedule C gross receipts.
>
> The reason it was closed is that correction of the ~apparent
> ~ error would have resulted in the refund you computed.
>
> Just another reason some folks should not attempt to do even
> a simple Schedule C
Hmmm, added information.
originally he included his W2 income in the schedule c
worksheet as I mentioned above. I didn't know that of
course, so his W2 was processed normally on line 7. Which
means double income reported Originally.
So the 1040x subtracts the W2 income from sch c, leaving
only maybe 6000$ gross, and thus generating large refund on
the 30,000$ of W2 income plus the SE tax originally paid.
So I can't blame them if they do scrutinize it carefully.
Keeping my fingers crossed.
ChEAr$,
Harlan
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