Whoops, spouse's 2009 tax return was incorrect...

[wikkibird]

H'okay, I'm finding I'm accepting this with great humor when normally I'd be freaking out about this. So, we got today a Form 13736 Response to Inquiry About Missing Tax Return which is a lovely form wanting to know when we filed our tax return for period 12/31/2010 (gee, we haven't even gotten hubby's W2 yet and they wanna know when we filed our return?) and for period 12/31/2009. We filed Married Filing Separately for 2009 (no idea why, maybe a moment of insanity? I must've have some kind of logic behind that...) and so I was curious why it was asking for that return (nevermind we gave 2009 and 2008 returns to my lawyer). So, I go to TaxAct to get the date/time I filed his return and *gasp!* I see that the status on it says it was REJECTED! <insert ominous music here> No idea why hubby didn't get an email notifying him of this LAST APRIL! Well, he says he didn't... Anyways, the reason, the IRS says, is because my SSN was wrong (see? moment of insanity) and that I claimed my disabled mother and my daughter on his return, too. Yes, I know that both of us cannot claim the same dependents on separate returns so I REALLY have no idea why I did that. I HAD to have been having a moment of stupidity, or I meant to remove them before filing, or...yea, I dunno.

So, I've sent an email to my lawyer asking what to do now, because we now owe $2,097 to the US Government for 2009 taxes! And of course I find all this out at 10:00 PM at night on a Friday! Oh, and that form wants an answer by February 9th (12 days from now) that we have filed those returns. It does have at the bottom that "Completed returns previously not filed... should be sent to the address below" in Denver, so I suppose I could send this amended 1040X to that address.

Has anyone had this happen to them and/or know what may happen now? Is this grounds for dismissal? Our 341 meeting isn't until the 24th of February, so I'm assuming we have some time to fix this/amend our case.

We now have a tax debt (can we include it in our Chapter 13 now?) for 2009 (and what about 2010's debt?) we have to pay on and I'm pretty sure we'll have taxes owed for 2010 because of hubby's income, tho, I think this time I will put my disabled mom on my return and our daughter on his return to reduce the tax owed. Or, I'll just take it to a tax professional!

Any help is appreciated! Thank you!

[lrprn]

Has anyone had this happen to them and/or know what may happen now? Is this grounds for dismissal? Our 341 meeting isn't until the 24th of February, so I'm assuming we have some time to fix this/amend our case.

Your 13 can't be dismissed because of this. However, it will be important to fix your 2009 filing forms as quickly as possible and file them.

We now have a tax debt (can we include it in our Chapter 13 now?) for 2009 (and what about 2010's debt?) we have to pay on and I'm pretty sure we'll have taxes owed for 2010 because of hubby's income, tho....

It all depends when you filed your Ch 13. What year and month did you file?

Generally, any new taxes that were actually owed *before* you filed could be included in an amended Ch 13 plan. Any taxes owed *after* you file are yours to pay. If you know know that you are going to owe for 2010, then talk with your lawyer right away. It could be possible to amend your plan - not to include the taxes as a part of your plan, but because the tax debt has to be paid and could significantly increase your expenses and therefore decrease your disposable income.

I think this time I will put my disabled mom on my return and our daughter on his return to reduce the tax owed. Or, I'll just take it to a tax professional!

I think given the mess that's here now by doing the taxes yourself, in this case consulting with an experienced accountant makes a lot of sense. Your bk lawyer may have one to suggest in your area.

Good luck getting all this straightened out.

[Flamingo]

Lrprn is correct and you need to totally review with your attorney as to your next step as to those owed taxes. Also in your posting you stated your hubby did not get an email from the IRS. Note that the IRS never communicates via email - a notice about the rejection/error would have been sent via regular snail mail to whatever address was listed on your hubby's tax return.

[AngelinaCat]

I will also add to what Flamingo said. The IRS never communicates by email. Any email purporting to be from the IRS is a scam attempt at stealing your identity.

[momofthree]

Sounds like you need to seek out a CPA to fix your 2009 taxes. It's a rare couple that actually benefit more from filing separately than filing together. You may even be able to amend the return(s) and file 1 joint return. I wouldn't try to remedy this situation on your own though. And DON'T go somewhere like H&R Block. Go to a year-round CPA, preferably someone who specializes in your field of business or your type of return.

[wikkibird]

Lrprn, we filed January 11th. And I should have clarified, that I got communication messages from TaxAct in regard to whether or not my return was accepted, etc. by the IRS when I filed last year, so I was assuming hubby would get an email from TaxAct, too. As it is, we never got anything from the IRS via snail mail that "Hey, we didn't get your tax return..." either, so we were blissfully unaware. *sigh*

I'm waiting for hubby's W2 to come in (hopefully today!) so I can play around in TaxAct/Turbo Tax to see what we'll owe for 2010 filing joint and separate. We have daycare costs, so I'm hoping that'll reduce what we owe. I only made $14K last year while hubby made $54K and his exemptions were too many most of last year. Booo....

[wikkibird]

Okay, I stinkin' love my lawyer, cause I did get an answer back today! Woot! He said for use to prepare the amended 1040X for my husband, sign it in blue ink, and submit it to him and he will file it with the bankruptcy division of the IRS for us. Guess that goes with what we are paying him for! He also said the liability will be added to an amended plan, which will most likely have no affect on our payment because it will be deducted from what we are paying to our unsecured creditors.

Also got offered a part-time job where I can work at home (less hours and pay, but I can work from home and supplement with my web design income) and reduce my kid's daycare down to 3 days, but our expense will only change my $80/month. Yay!