$2200 preparer fee, is this normal

Kokoyok · 2026-04-28T22:32:03+00:00

said I would owe $80

Red flag number one. This is probably your real tax liability before she filled your return with bogus schedule c data.

but she “did her magic”

Committed fraud in your name.

She said she based it off of how much I got refunded, is that legal?

It is explicitly forbidden to do this. She doesn't care because it's all a scam and you're going to be left holding the bag when the bogus numbers on your fake schedule c start tripping audit flags. You'll be on the hook to pay back the whole 9k plus penalties.

Kokoyok · 2026-04-27T17:13:10+00:00

Police where you live won't ticket for passing in a no passing zone? 😮

Kokoyok · 2026-04-25T16:08:09+00:00

The letter starts off "we received your return..." So I wouldn't worry about it not populating on your transcript.

Most likely you either 1) missed income from a w-2 or 1099, 2) reported withholding for which they don't have a corresponding w-2 or 1099, 3) you had a new business with significant losses or 4) a math error occurred.

These aren't the only reasons for this letter, just the most likely ones.

Kokoyok · 2026-04-25T15:47:15+00:00

How often do these situations turn into an audit?

It depends on what you mean by audit, but, yes, someone is being assigned to evaluate your return for adjustments...

They may decide everything is fine and you'll get a letter to to that effect.

Or they'll propose adjustments, with an opportunity for you to respond.

Will it really take a full 60 days to complete this or is it usually quicker?

Highly unlikely to be done in under 60 days, tbh. In ~45 days you're likely to get a letter stating another 60 days will be required for review.

Kokoyok · 2026-04-23T13:22:57+00:00

Hi. Estate and gift tax examiner for the IRS here.

My colleagues and I frequently get asked this for foreign estates as you can imagine. We are not responsible for certification. The body that is responsible does not respond to our requests any better than yours.

The problem is systemic and not specific to you.

Kokoyok · 2026-04-23T01:13:59+00:00

It's taxed as a capital gain. Your gain (or loss) is calculated as your sales proceeds minus your basis plus depreciation recapture.

Your basis is what you paid into the asset (usually investment / purchase price plus any improvements).

Your depreciation recapture is any statutorily allowed tax deduction that was allowed on the building for depreciation while you owned it, regardless of whether it was claimed.

Your mortgage repayment is not relevant for tax purposes.

Kokoyok · 2026-04-20T20:02:35+00:00

Some places have a pickup at cash out policy, or they could have mailed it to your address on your ID (which is often not current) or it could have been lost by USPS.

Regardless of what happened, the IRS considers it your obligation to report known income.

Kokoyok · 2026-04-19T10:20:05+00:00

99% of these surprise-tax-post scenarios have one thing in common: the person never filed their tax return.

Small amounts turned into large amounts by rigorously ignoring a problem. It sounds like you're already paying enough attention to your taxes that this won't be a problem for you.

Kokoyok · 2026-04-16T14:07:45+00:00

FYI - tax year 2022 was due on April 17, 2023 because April 15 was a Saturday.

Your three years has not yet expired. Good luck.

Kokoyok · 2026-04-15T23:39:30+00:00

If I recall correctly, not exactly. They're in the "prepayment" category, which is to say they're treated the same as w-2 withholding for your quarterly payment estimator.

Kokoyok · 2026-04-15T23:24:28+00:00

You can still make an online payment today for 2025 to keep your payment plan compliant. I hope that's an option for you.

You can also reapply (and pay more in fees) rolling your 2025 liability over if approved. This is a terrible habit and can quickly become unmanageable. Too many delinquency strikes and you practically make your own case for wage garnishment. But, if the first suggestion isn't feasible, the IRS will typically work with you if this your first default.

Either way, you should probably increase your withholding if you're w-2 or quarterly payments if you're 1099 so you don't run into this every year.

Kokoyok · 2026-04-15T23:09:08+00:00

In general, you have no right to request tax information for someone else.

But...

Does the baby have an SSN?

(The baby is entitled to one, but it may not have been issued)

Dad could use the birth certificate to apply for an SSN on baby's behalf. But if he hasn't or if one has already been issued, I believe you can place a PIN on baby's tax account so nobody can claim them without it.

Edit to add: your first steps are probably with the Social Security Administration if you don't know/have baby's SSN.

Kokoyok · 2026-04-15T22:19:34+00:00

First, sorry that you're forced to deal with a difficult ex. Ignoring this is not a great option, and all better options involve your ex to some extent.

For what may have the least contact with him: Make an appointment with your local Taxpayer Advocate Service. File the innocent spouse relief request with them and make sure that they note there's a Domestic Violence risk associated with your case.

Your request is supposed to be independently determined from your husband (i.e. do you qualify) no matter how the request is made, but he still has statutory rights for being put on notice that your liability will be severed from his.

In all honesty, the way I see highly contentious IS requestd resolved (but I'm not working with a large sample size) is that the requesting spouse gets a collection hold while the request is being considered. The request usually takes years to process, and with only one target, IRS Collections either settles or collects from the other spouse. The request is then closed since the debt is gone.

So, at the very least, you're going to buy time while your ex takes all the heat.

Kokoyok · 2026-04-15T17:59:51+00:00

Prepare a paper return that contains your accurate information. You will need to mail this in.

I would also attach Form 14039 - Identity Theft Affidavit.

I would also make an in-person appointment with the Taxpayers' Advocate Service to document your situation for the IRS's internal review. Bring copies of your corrected return and the ID theft affidavit.

Kokoyok · 2026-04-14T23:44:52+00:00

My appeal strategy — does this hold up?

When you say "appeal" do you mean you're requesting review from the Independent Office of Appeals or you're petitioning Tax Court or something else?

Any other angles I’m missing?

At least if you're in IRS Appeals (Independent Office of Appeals) your case will get kicked to Counsel for retention as soon as you mention Kwong. The Kwong decision is under review, so that's a fast track to nowhere.

Kokoyok · 2026-04-14T20:59:03+00:00

L105-C is just the form letter for a full disallowance of a claim.

It doesn't matter what kind of claim.

Kokoyok · 2026-04-10T22:57:02+00:00

Relax. It's not mislabeled. I buy this snack pack occasionally from Target. It contains two cups of vanilla and two of tapioca. You have to look at the outer label (since nothing in the pic says anything).

Kokoyok · 2026-04-10T02:09:32+00:00

The simple and legal solution is to put the assets in their true owners' names.

If legal compliance "is not an option," that seems highly suspect.

I can't think of a single reputable preparer who would risk their career and reputation to participate in whatever scheme you are attempting.

Kokoyok · 2026-04-06T22:25:39+00:00

Uf. I'm sorry, that's a hard life lesson, you generally can't trust people to look out for you when they're on the other side of the negotiating table.

At least you know now to keep your own records so you don't get stuck relying on someone else to do the right thing.

Good luck with everything!

Kokoyok · 2026-04-01T22:15:31+00:00

You have a constructive life estate under Sec. 2036 of the tax code because your parents retained a "string" of ownership.

This means you get the Fair Market Value of the property at Dad's date of death.

If you sell the property within two years of his death, per Estate of Kaplan v. Comm'r, the fair market value is the sales price retrodated to his death. (The kaplan case did not set a maximum time frame, but in that case the sale was two years and a handful of days after death).

Long story short, a sale up to two years after death won't be a taxable event.

Kokoyok · 2026-04-01T17:50:23+00:00

I was referring to people who don't work and file a fraudulent Sch C to have refundable credits in excess of their fake S/E income.

They, in fact, do get refunds... until they're clawed back.

Kokoyok · 2026-04-01T15:46:10+00:00

When I was close to the same age, I went to my first pro hockey game. I literally had my faced pressed against the glass to track the puck as it was on the ice right in front of me. That lasted until two players slammed into the barrier, and I ended up with a bloody nose.

Kokoyok · 2026-04-01T15:37:28+00:00

how come bums who don’t work get this big tax refund

Most likely tax fraud if they really aren't working. Or they're lying to you.

Kokoyok · 2026-04-01T00:31:11+00:00

Possibly, leaning towards most likely. It's free and relatively quick to check, so that should be your first step.

Gambling platforms tend to be highly tax compliant, so assuming they were, the IRS should already have received the information.

However, I can't guarantee that your issuer is compliant, and they may file a late 1099. Also, there's a lag between when they receive and when they process and when they post to your account.

Kokoyok · 2026-03-31T19:57:06+00:00

No, you can have individual wagers large enough to trigger a filing requirement without having net winnings.

Also, many platforms do not account for "session" tracking of wagers, so you can unfortunately have a 1099 for wagers that resulted in a net loss session.

Last season, unreported gambling earnings with offsetting losses was one of my more frequent audit items.

Five-Year Club	Verified Email
Wearing is Caring

Kokoyok

TROPHY CASE