IRS Issue

Magus`

I'll be calling on Monday but I'm having a recurring issue with the IRS.

In 2016 I used the ACA but because of something I ended up owing money back to the tune of like $300. I paid it (and have the bank records). I then get another bill saying I owe ~$200. I call them and they can't explain why but said my 2017 refund will cover it, which.. ok.

So I just got ANOTHER BILL stating I still owe the money. Is this a common thing or am I missing something? First, I pay the exact amount asked, then I'm told that was somehow a partial payment that hadn't updated in the system but was told $64 would be taken to cover the remaining balance. Then the letter today.

I am.. confused. Thoughts?

Derrick

Just on a guess, you owed taxes in 2016. You paid the $300, and should be fine. There is another bill for $200, which sounds extremely strange (probably an error on their end somewhere?) and they thought your refund for the following year would be high enough to cover the difference, but it wasn't. So you got the bill for the remainder.

I think at this point you should look into professional options to get this sorted out, because this doesn't sound right.

Magus`

They stated the last time I called them it was for the same thing (ACA repayment). The new letter also states tax year 2016. Guess I have to wait to find out what's going on this time.

davidsdurions

What this sounds like is that your income exceeded the expectations from when your ACA discounts were estimated.

Can’t be sure with the limited information here, but bringing your stuff to a tax pro might provide clarity if the IRS call doesn’t.

E.Coyote

Just to make sure, you vetted the letters by directly contacting the IRS(not from the number provided by the letter)? There are a number of scams where people pose as the IRS. =\

MichaelLC

Also make sure you're getting the pay-off amount, not just the current balance.

If it's incurring interest, they should give you an amount that takes that into consideration.

Magus`

E.Coyote wrote: »

Just to make sure, you vetted the letters by directly contacting the IRS(not from the number provided by the letter)? There are a number of scams where people pose as the IRS. =\

Mmhmm. I used the 0922 number. Double checked the .gov website.

MichaelLC wrote: »

Also make sure you're getting the pay-off amount, not just the current balance.

If it's incurring interest, they should give you an amount that takes that into consideration.

It's been a bit, but I seem to recall the original balance stating the payoff was $300 something. You're right, though, I may have misunderstood. Unfortunately I can't seem to access my IRS account because the things it uses to identify me don't work. :?

davidsdurions wrote: »

What this sounds like is that your income exceeded the expectations from when your ACA discounts were estimated.

Can’t be sure with the limited information here, but bringing your stuff to a tax pro might provide clarity if the IRS call doesn’t.

That is basically what it was but the income increase was minor. Like maybe a few hundred dollars and still well within ACA parameters. In fact, I think originally it wanted repayment of everything but limited it to a set amount based on my income. Unfortunately I had a job loss that year and had to bounce around and knowing my income was never a guaranteed thing.

Edit: Forgot to say - when I talked to the rep (after 2+ hours of waiting, damn you budget cuts) I made sure to ask was there any remaining money owed after they take whatever amount it was from 2017 refund and they said no. It's just really weird.

Edit #2: Checked my return. The total amount due was $271. I used the pay extension option which is why it went to $300 something and was due no later than January.. 15th.. ?. Which I paid before on. If that wasn't somehow the total than the information provided is ridiculously unclear.