Notice of Deficiency

[vwfanatic]

What is the name of your state? PA

Recently, my wife and I recieved a notice of deficiency for Tax year 2002.

It was intended for her.

In 2003 we filed on April 15th a Zero Return for 2002.
That same year, we recieved a Refund of $2963.31 for the IRS for everything that she paid in in 2002.

They then send a letter of deficiency a year later, saying that we owe them $2111 + $132 in interest.

1st. They have her name misspelled on the forms. Is the letter still valid as it is address to another person?
2nd. They Refunded her money. Why would they send this letter when they, by refunding her money said they owed her the money?
3rd. They letter isn't signed. As far as I know, any legal document must by signed. Am I wrong?

I have a million more questions. But not about this.

Thanks,

Abraham

 

[abezon]

The IRS has to explain why they think she owes more money. There should be a section in the letter detailing their computer's decision. The doc does not need to be signed. The misspelled name & the fact that she filed a joint return but the letter was addressed to her only may indicate the IRS wanted to send the letter to another person. Double check the SSN.

I strongly suggest you get to an enrolled agent immediately. Take the return you filed and a copy of all IRS letters. You have a limited time to respond to a deficiency notice, so don't delay.

The swing could be due to any number of things, including the IRS disallowing an earned income credit, some employer filing a W-2 with her SSN on it instead of the correct employee's, or you may have calculated your taxes incorrectly (wrong filing status, wrong dependents, wrong credits, etc.).