Any Tax Experts?

[Dmb5450]

I'm hoping someone can offer some advice, I have tried to solve this issue on my own but don't seem to be getting any where.

My wife got a letter from our local tax office stating that she owes 71 dollars from the 2014 tax year. This is the first time we have gotten any notice about this. Basically, the info reported on the local tax form was incorrect according to the audit. ( I live in PA, Lehigh County)

I now do my own taxes now, but for that tax year a CPA did them. What happened, according to the CPA is that box 1 and box 18 wages differ, box 18 had a lower figure. I was told that he followed the directions exactly and reported the income in box 18 and paid the local tax owed as a result.

The audit letter states that we reported the wrong income (they wanted income from box 1) as a result we owed the difference plus a penalty and a failure to pay fee. I called the IRS spoke to 3 people and was on the phone for over 2 hours! The kicker, no one knew the answer as to why the boxes 1 and 18 were different. They didn't even know if the boxes are allowed to be different! I asked the simple question " if the IRS doesn't know this answer how did the audit turn up that my wife owes money?" No one could answer that either.

I know it's a small amount, but it's the idea behind it. The company my wife worked for in 2014 was terrible, the boss sent W2 out late pay checks were wrong etc, I told the local IRS office about this back when things occurred nothing got done. I also thought a law was in place stating employers need to take out the exact amount of local tax, they never took corrects amounts out. We even had them manually change the percentage even then there were issues.

If this is the employers fault how do we get this resolved? I didn't call the old employer yet as they are morons and I know nothing will get done, but I will call if needed. I was hoping the IRS could say "employers issue this is what you do" but that was not the case. I have until 2/13/17 to pay the owed amount, hoping to have his resolved by then.

Any assistance would be greatly appreciated!


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[KirkH]

Pay the $71 and get on with your life. It's not worth the agita.


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[FUNX650]

I now do my own taxes now, but for
that tax year a CPA did them.

What happened, according to the CPA is
that box 1 and box 18 wages differ,
box 18 had a lower figure.

I was told that he followed the directions
exactly and reported the income in box 18
and paid the local tax owed as a result.

Just wondering...

•The CPA, themself, "paid the Local Tax"?

•Wouldn't/won't the CPA go with you
(or, in your stead) to the IRS to explain
their computations firsthand?



Bob

[Dmb5450]

Yes the CPA took our check and mailed everything in to the IRS. I have an email out to the CPA asking how to proceed with this but haven't heard back yet. I am hoping he takes some responsibly and knows what to do in order to fix this. I was just trying to do my own research to fix the issue as well.


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[FUNX650]

Yes the CPA took our check and mailed
everything in to the IRS.

I have an email out to the CPA asking
how to proceed with this but haven't
heard back yet.

I am hoping he takes some responsibly
and knows what to do in order to fix this.
I was just trying to do my own research
to fix the issue as well.

^^^ ^^^


Bob

[Dmb5450]

Update: CPA states that he is obligated to use what is on the W2 since W2 states box 18 as local tax he used that. IRS called back and stated CPA should have used box 16 state tax. State and local income was different according to the W2. CPA says employer is at fault for this. IRS says CPA should know not to use box 18 as employers are not obligated to match local and state wages??? Currently waiting for IRS to look into this more. Basically a huge urinating contest between IRS CPA and employer. This is turning into a huge pain.


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[custmsprty]

Bewtween $71.00 and getting the IRS off my back, I'd pay the $71.00 all day long.

[Dmb5450]

Bewtween $71.00 and getting the IRS off my back, I'd pay the $71.00 all day long.

I agree, I just hate letting things go without a fight, I'm stubborn. I am thinking it is truly not worth the fight though.


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[AZpolisher15]

I had a similar thing happen two years ago. Got a letter saying I owed some odd dollar amount. After about a week of phone calls, voice recordings, and back and forth, without so much as a hint of getting closer to the answer, I gave up. Frustrating as that was. In the overall picture, it was less than 3% of what my tax bill was. Can mistakes me made? Sure. Is it worth the time and frustration to figure it out? Only you can decide. For me- my fight lasted a week + a couple hours on the phone, a lot of that with no one on the other end of the line. I do wish you luck though!

[Dmb5450]

I had a similar thing happen two years ago. Got a letter saying I owed some odd dollar amount. After about a week of phone calls, voice recordings, and back and forth, without so much as a hint of getting closer to the answer, I gave up. Frustrating as that was. In the overall picture, it was less than 3% of what my tax bill was. Can mistakes me made? Sure. Is it worth the time and frustration to figure it out? Only you can decide. For me- my fight lasted a week + a couple hours on the phone, a lot of that with no one on the other end of the line. I do wish you luck though!

Thanks for the support, hearing everyone say pay it and move on makes a lot of sense. I get too worked up about these kinds of things and usually forget that my time and added stress isn't worth the money.


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