Hello,
Currently I'm in a weird and bizarre situation where IRS simply lost submitted 1040. Below is the timeline of events for a better view. I desperately need help and guidance:
3/11: Filed federal tax return with two W7 applications for my wife and child. This was done at tax assistance center where all documents were verified and mailed.
4/24: Received two ITIN notification letters, approval for my wife and rejection for my child
4/26: Called ITIN department (number in the letter) and got the following explanation and next options:
They DO NOT see my tax return - possible reason is that IRS NOT yet processed it. "Where is my refund" shows no matching record/information found.
Reason for ITIN rejection is the wrong child credit type. Two next options:
a) Do not resubmit documents. Just wait for IRS to re-adjust refund and process it. File for ITIN next year (I DO PREFER this option)
b) File amendment return with correct child credit and W7 application
Overall recommendation from ITIN was first to wait for IRS to readjust and process refund. Then move forward.
5/28: "Where is my refund" still shows no matching record/information found. Called ITIN department again. This time they were really surprised why they still DO NOT see my refund/return.
They literally said it's like my return just vanished. Recommendation was to wait more because in such cases everything is done manually.
5/31: Called IRS [phone number removed]): they also DO NOT see my return. Possible explanation is ITIN department not yet forwarded it to them.
Also, they've mentioned a 6 six week deadline after receiving ITIN notification letters (4/24 + 6 weeks). By that time IRS should receive my return from ITIN for further processing. Recommendation is to wait for that dealine and check.
6/14: Called IRS [phone number removed]) and this time got the following response:
IRS DIDN'T receive my return, they simply don't have it. I've asked how is that possible if someone initially have processed all submitted documents?
Per IRS, W7 is a separate thing. They simply do not know. Another argument from them was that I didn't receive any notification letter from IRS stating that they've has received my 1040 form.
They told me to contact tax payer advocate...
6/14: Called tax payer advocate service. Initially they've mentioned another deadline due to peak processing time which is 17 weeks (w7 + 1040 processing).
New date to wait and check is July 8th. But then after additional investigation they've also confirmed they don't see my return and filed a case with advocate...
I'm totally shocked with this situation and a complete IRS incompetence.
1) How's that even possible? Did they just loose my return or it's stuck somewhere? ITIN points to IRS and IRS points back to ITIN. How no one in the same organization can find/see my return?
2) What are my next steps? Just wait (3 weeks) for tax advocate? Anyone had a similar issue? What was the resolution? Any guide and help?
3) In case they will request to re-file return - should I expect any penalties due to filing post tax return deadline? It's not my fault they lost it...
4) My CA state return is pending as well because they do require SSN or ITIN for dependents. Otherwise they will just mail me back asking for ITIN/SSN. Can I go ahead with filing it and providing ITIN at least for my wife? Or in this case ITIN number she got back in April won't be valid anymore? In general - what should I do with CA state return? Maybe file for extension just in case? I do expect refund there.
