* Russ Fox discusses an all too familiar problem, especially lately due to IRS backlog, in “Evergreen Post: IRS Sending Erroneous Balance Due Notices” at TAXABLE TALK.
One of my clients received her 2020 refund check recently with an amount withheld for an erroneous 2019 balance due, which I had written to “Sam” about months ago. A subsequent notice verified and identified the source of the refund shortage. A few days later she received a certified letter from the IRS with a demand for the balance due that was withheld from the 2020 refund.
The excessive closure of the IRS in 2020 has totally FU-ed things up! I wonder if the Service will ever fully recover. Going forward the IRS truly needs to develop a plan to be able to continue to function adequately during a health emergency if, God forbid, something like COVID ever happens again.
Russ ends his post with some very important advice (highlights are mine) -
“This does bring up some standard rules about IRS notices:
1. Do not assume the notice is correct. Per IRS statistics, two-thirds of IRS notices are wrong in whole or in part.
2. If you use a tax professional, let him or her know immediately about the notice. IRS notices do not get better with age.”
* A reminder that it is time for year-end tax planning. Sandra Block listed “10 Year-End Moves to Lower Your 2021 Tax Bill” at KIPLINGER.COM back in mid-October..
* Danielle Harrison explains “One of the Most Underutilized Savings Tools: The HSA” at THE STREET.
“Health Savings Accounts are a great vehicle for retirement savings. Financial Planner Danielle Harrison explains what you need to know about HSAs.”
* From Alessandra Malito at MARKETWATCH - “You inherit an IRA — what to do and how not to mess up”.
* Kay Bell reports “Hurricane Ida victims in Connecticut have new Jan. 3, 2022, tax deadline” at DON’T MESS WITH TAXES.
TTFN
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