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Taxing Taxing, Part 11

, , , , , | Working | October 9, 2021

Back when the Affordable Care Act was first implemented, I was only on my mother’s insurance, since I didn’t get insurance through my job. When it came time to do taxes, I used a computer tax program to file. When it got to the part about insurance, I put that I had insurance but didn’t pay anything as I was not the policyholder.

A couple of weeks later, I receive a notice from the IRS saying that my taxes were missing Form 8962, which is the form for insurance. My taxes won’t be filed until it is submitted. I do the form myself and send it in. A few weeks later, I receive my tax return and it is $2,000 more than it should be. I figure out that they gave me the insurance tax credit even though I put on the form that I paid nothing toward the insurance as I wasn’t the policyholder.

I call the IRS and explain the situation and that I do not deserve this money.

Employee #1: “Since our tax department is closed for the rest of the year, there isn’t anyone you can talk to to amend the tax return to return the money.”

After this, I call a few more times and nobody will help me. I set the $2,000 in my savings account and don’t do anything with it.

I receive a letter from the IRS sometime later saying they listened to my phone calls and will investigate the situation, that I don’t have to do anything else, and that they will contact me later. The next tax season rolls around and I haven’t heard anything more. I decide I want to get this situation settled before filing my taxes for that year. 

I call the IRS AGAIN and ask them about the case.

Employee #2: “The case has been closed and the money is yours to keep.”

Me: “What are the chances you could audit me years later and hit me with fines?”

Employee #2: “It could happen, but there’s no way to know.”

I thanked her, hung up, and then thought for a bit. I called the IRS one more time and asked to talk to someone who could look at my previous year’s tax forms. I was transferred to their tax department and the woman there was so helpful. She looked over it with me and said I had done the form wrong, but they should not have sent me that money. She was nice enough to amend my tax forms for me, send them so I could sign them, and give me instructions on how to return the money.

When I received the package, I followed the instructions, sent the amended tax forms and the $2,000 back, and thought nothing of it. Then, I received a letter from the IRS that turned out to be a bill. They billed me $80 in interest for keeping money that I did not deserve. I called the IRS and asked the representative if the fee could be waived since I had tried multiple times to return it, but nobody would work with me. She told me the fee couldn’t be waived. Frustrated, I paid the $80 and tried my best to put it behind me. It hasn’t worked yet since I freak out every time I receive a letter from them.

Related:
Taxing Taxing, Part 10
Taxing Taxing, Part 9
Taxing Taxing, Part 8
Taxing Taxing, Part 7
Taxing Taxing, Part 6