oakwcj
Posts: 339
Joined: Wed Apr 27, 2011 9:01 am
Delivery Date: 19 May 2011
Leaf Number: 2441
Location: Oakland, CA

Wow! Just wow!

Mon May 07, 2012 6:00 pm

I was going to start a new thread, because what I have to report is straight out of the Twilight Zone. My tax return has been in limbo since late January. Today I got an "Examination Report" with pages of attached garbage from the IRS. The upshot is that my claim for a "Mortgage Interest Credit for $7,500" under Form 8396 was disallowed and penalties were imposed, because I failed to substantiate the claim! That's right, some bozo transposed the three and the nine and turned my claim for an EV credit on Form 8936 into a claim for a mortgage interest credit on Form 8396. My return was completely accurate. I spoke to a nice lady at the IRS who said that she had never seen anything like this in her 21 years there. I took a bit of comfort from that and am trying to keep my sense of humor intact. I'm faxing them Form 8936 from my return and the bill of sale for the LEAF, because the nice lady said they were checking a lot of these credits and would probably ask me for it once they realized their mistake. She even apologized.
Cayenne Red SL-e
Blink Installed 6/23/11

thankyouOB
Posts: 3583
Joined: Mon Feb 21, 2011 11:14 am
Delivery Date: 30 Apr 2011
Leaf Number: 1442
Location: Coastal LA

Re: Wow! Just wow!

Mon May 07, 2012 7:17 pm

oakwcj wrote:I was going to start a new thread, because what I have to report is straight out of the Twilight Zone. My tax return has been in limbo since late January. Today I got an "Examination Report" with pages of attached garbage from the IRS. The upshot is that my claim for a "Mortgage Interest Credit for $7,500" under Form 8396 was disallowed and penalties were imposed, because I failed to substantiate the claim! That's right, some bozo transposed the three and the nine and turned my claim for an EV credit on Form 8936 into a claim for a mortgage interest credit on Form 8396. My return was completely accurate. I spoke to a nice lady at the IRS who said that she had never seen anything like this in her 21 years there. I took a bit of comfort from that and am trying to keep my sense of humor intact. I'm faxing them Form 8936 from my return and the bill of sale for the LEAF, because the nice lady said they were checking a lot of these credits and would probably ask me for it once they realized their mistake. She even apologized.
sorry to hear about that.
it seems a one-off situation and, while considerable money is involved, you seem to be maintaining a level of outrage that exceeds the situation.
I wish you well and fervently wish you get your credit.
may reserve/delivery 4/30/11
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JimSouCal
Posts: 860
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Re: Wow! Just wow!

Mon May 07, 2012 7:28 pm

oakwcj wrote:...The upshot is that my claim for a "Mortgage Interest Credit for $7,500" under Form 8396 was disallowed and penalties were imposed, because I failed to substantiate the claim! ...My return was completely accurate...they were checking a lot of these credits...
My return was filed in early March... Well past the 4 weeks to expect a refund. We'll see...

oakwcj
Posts: 339
Joined: Wed Apr 27, 2011 9:01 am
Delivery Date: 19 May 2011
Leaf Number: 2441
Location: Oakland, CA

Re: Wow! Just wow!

Mon May 07, 2012 8:04 pm

thankyouOB wrote:
oakwcj wrote:I was going to start a new thread, because what I have to report is straight out of the Twilight Zone. My tax return has been in limbo since late January. Today I got an "Examination Report" with pages of attached garbage from the IRS. The upshot is that my claim for a "Mortgage Interest Credit for $7,500" under Form 8396 was disallowed and penalties were imposed, because I failed to substantiate the claim! That's right, some bozo transposed the three and the nine and turned my claim for an EV credit on Form 8936 into a claim for a mortgage interest credit on Form 8396. My return was completely accurate. I spoke to a nice lady at the IRS who said that she had never seen anything like this in her 21 years there. I took a bit of comfort from that and am trying to keep my sense of humor intact. I'm faxing them Form 8936 from my return and the bill of sale for the LEAF, because the nice lady said they were checking a lot of these credits and would probably ask me for it once they realized their mistake. She even apologized.
sorry to hear about that.
it seems a one-off situation and, while considerable money is involved, you seem to be maintaining a level of outrage that exceeds the situation.
I wish you well and fervently wish you get your credit.
What level of outrage? It's too bizarre for outrage. But wouldn't you think that computers, what with their advanced cut-and-paste capabilities, would have eliminated transposition errors?
Cayenne Red SL-e
Blink Installed 6/23/11

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gbarry42
Posts: 888
Joined: Mon Jan 10, 2011 5:48 pm
Delivery Date: 06 May 2011
Location: Moonlight Beach

Re: Wow! Just wow!

Mon May 07, 2012 8:49 pm

oakwcj wrote:But wouldn't you think that computers, what with their advanced cut-and-paste capabilities, would have eliminated transposition errors?
I would, but I have seen too many times where someone re-entered the data by typing it off a printed list or whatever. I go to great lengths to massage data so it will import properly, and most would say that I expend too much effort. And then I see stupid stuff like this and I'm not sorry one bit.
And there goes the first capacity bar! At 24,000 mi on 9/9/2013.
Second bar at 30,500 mi on 2/7/2015.

thankyouOB
Posts: 3583
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Delivery Date: 30 Apr 2011
Leaf Number: 1442
Location: Coastal LA

Re: Electric drive vehicle credit 8936 decreased/rejected by

Mon May 07, 2012 9:29 pm

did you paper or electronic file?

I bet it was electronic.
may reserve/delivery 4/30/11
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ECOtality/LADWP/ Blink 4/4/11
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Gardena Nissan, msrp -1k
red SL with etec L3
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oakwcj
Posts: 339
Joined: Wed Apr 27, 2011 9:01 am
Delivery Date: 19 May 2011
Leaf Number: 2441
Location: Oakland, CA

Re: Electric drive vehicle credit 8936 decreased/rejected by

Mon May 07, 2012 10:28 pm

thankyouOB wrote:did you paper or electronic file?

I bet it was electronic.
You'd win the bet. And, yes, Kafka would like that, because it means that no human ever looked at my actual return.
Cayenne Red SL-e
Blink Installed 6/23/11

coqui
Posts: 257
Joined: Tue Dec 27, 2011 11:34 am
Delivery Date: 11 Dec 2011
Leaf Number: 15024
Location: Charlotte, NC

Re: Electric drive vehicle credit 8936 decreased/rejected by

Tue May 08, 2012 5:05 am

Wow!
My 8936 went through no problem at all.
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oakwcj
Posts: 339
Joined: Wed Apr 27, 2011 9:01 am
Delivery Date: 19 May 2011
Leaf Number: 2441
Location: Oakland, CA

Re: Electric drive vehicle credit 8936 decreased/rejected by

Tue May 08, 2012 7:18 am

The IRS sent me a pamphlet entitled "The Examination Process", which gives this explanation of why it examines returns:

"While most returns are accepted as filed, some are selected for examination. The IRS examines (or audits) some federal tax returns to determine if income, expenses, and credits are being reported accurately. IRS selects returns for examination using various methods. These methods include random sampling, computerized screening, and comparison of information received by the IRS such as Forms W-2 and 1099. Having your return selected for examination does not suggest that you made an error or were dishonest."

I have heard from sources inside and outside of the IRS that they have been much more aggressive this year in randomly selecting returns claiming large credits. It seems likely that my return would have been randomly selected even if they had gotten the credit I was claiming right. What's disturbing is the length of time they took before sending me their "report" without doing the simplest sanity check, such as actually looking at the form on which I claimed the credit. In the end, it doesn't matter if you file electronically or on paper, with or without a tax professional. Their algorithm doesn't care.
Cayenne Red SL-e
Blink Installed 6/23/11

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lpickup
Posts: 1170
Joined: Thu Nov 17, 2011 2:14 pm
Delivery Date: 09 Dec 2011
Leaf Number: 16138
Location: Raleigh, NC
Contact: Website

Re: Electric drive vehicle credit 8936 decreased/rejected by

Tue May 08, 2012 7:51 am

oakwcj wrote:What's disturbing is the length of time they took before sending me their "report" without doing the simplest sanity check, such as actually looking at the form on which I claimed the credit.
Let me ask you though: you said that your return has been in limbo since January, but you only now got their report. What, if anything, did you receive in January? I received what sounds like a very similar package recently (albeit it was for my 2010 return) with enough information (I wouldn't call it a "report" though) for me to contest and substantiate the information they had. There was a very specific deadline specified and address/fax number to send my information to. Are you saying that this is the first correspondence you've received from them?
...Lance

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