By Mary Goetsch,
Aurora, Ill.
Wayne Johnson’s comment on the IRS tax forms in the The Voice April 18 edition may come true: There are complicated tax laws that even their agents can’t figure out. It means the new 1040 Forms will be ambiguous and difficult. As just one example, we already work with the Social Security Tax Worksheet which is so convoluted that the Social Security Administration automatically sends each taxpayer a simplified explanation to figure whether one owes tax on their Social Security. It is simple. Add the income from all sources listed on the 1040, including interest, dividends, annuities, pensions, IRA distribution, Schedule C, but take 50% of your Social Security for the tax year rather than the full amount. If your total is less than $25,000 your Social Security is not taxable. One cannot figure out this simple formula by using the Tax Worksheet in the IRA booklet.
I write to report the IRS is not doing its job. To make a long story short, I first sent my federal tax return February 19, The State deposited the check I had sent them at the same time. I received my return April 4 stamped in red in small letters at the bottom of the first page, “Unsigned, returned.” My papers were worked-over. Someone had marked a red line through my Direct Deposit checking routing number. Someone from the IRS wrote six-digit red numerals in the lines where one wries names of dependents!
Of course, my 1040 is signed, dated, phone number, and occupation listed. The County has a copy, so I don’t believe the IRS can create such falsehoods. I sent my 1040 once again by certified mail April 6. The tracking number is 9589 0710 5270 1716 928 36 and viewed it on usps.com (Wayne, this is for your entertainment). I worried because it stalled five days “Preparing for delivery” at another ZIP in Kansas City. I figured that the IRS would discard it. I wonder how many more returns are being rejected, or, not accepted, return to sender? Is it because I use paper forms? Is it because I have an odd-number IRA Distribution rather than an even thousand? Banks deal in actual amounts rather than rounded amounts. Or, is it because my refund would be $415? The IRS does not want to do refunds this year. My tax return ultimately was, “Delivered April 17, 8:28 a.m. in Kansas City, 64999.”
What I plan to do is send the refund due each year, subtract each year from the $415 in my pot. In four or five years, it will reach zero and Ill owe them checks rather than receive a refund. One might say, why did I overpay? It has to do with estimating tax in advance, when one makes just one IRA withdrawal each tax year. I know how to do it now, but did not have my papers with me the day at the bank, and not yet familiar with Minimum Distribution Requirements which I am now. Very important. My situation could have been worse, say messed up and not taken out what the IRS requires past age 73, in my case. Penalties, you know. What if the IRS makes a mistake? Will it acknowledge the error? We will see if I get my refund this year. I am not betting on it. What does Wayne bet on?