Got a 12c IRS query letter asking for proof of claimed withholding for federal taxes. It was directly from form SSA-1099. Why is this even being questioned?

[dane1234]

Claimed withholding for federal taxes was correctly entered, matches my form SSA-1099.  Can't understand why this is even being questioned.  It was the only issue identified in the IRS letter.

[macuser_22 · Accepted solution]

Only the IRS could tall you why they want it.  The 12C letter should have a number to call for more information.

[dane1234]

Yes, there was a phone number on letter, but easier to just mail copy of SSA-1099 proving that claimed amount of federal withholding was correct.  But does SSA not electronically report its 1099 forms to IRS?  Guess not.

[macuser_22]

The IRS has a copy.  They might be suspecting ID theft and want to be sure that *you* have a copy.  Only the IRS knows what they want it.

[dane1234]

Okay, thanks   The ball is now back in IRS' court.  Will see what happens next.

[Rostonllc1]

You need to fill out form 8962

[BMcCalpin]

@Rostonllc1, while it is true that an IRS 12C letter may be asking for form 8962, in this case what the Original Poster (OP) indicated was that the letter was asking for proof of federal tax withholding. The withholding could be on form W-2 or W-2G or any of a number of 1099s or, as in this case, SSA-1099. If the IRS had wanted form 8962, the letter would have explicitly said so.

@dane1234, I presume that this issue has long been dealt with (and successfully I hope), but based on what you have written, it would seem to me that either the Social Security Administration (SSA) failed to send a copy of your SSA-1099 to the IRS or sent it with a different amount for withholding. Yes, the SSA does copy the IRS on the SSA-1099 as a matter of course.

I presume that you sent the copy of the SSA-1099, and that you and the IRS have communicated and straightened out the confusion.

[dane1234]

Yes, after I mailed copy of SSA-1099 showing exactly the federal withholding I had claimed, got refund check for expected amount about ten days later.  This has happened twice in a row now.  If it happens this year (2019 tax return, filed in 2020) I will be annoyed.

[dane1234]

For now the third time in five years, I have received a letter from the IRS asking me to mail copies of my claimed federal tax withholding by Social Security and for my IRA.  No problem, mailed copies showing exactly what I had claimed in my 2021 federal tax return.  But I thought that if IRS challenged you two times before on an issue, with no change in tax due, they weren’t suppose to question you for a third time.  Is this policy no longer in effect?  And why doesn’t the IRS already have a copy of these withholdings? 

[AnnetteB6 · Accepted solution]

Unfortunately, your questions need to be answered by the IRS.

It is somewhat unusual to see Federal income taxes being withheld from Social Security benefits.  If you continue to get those withholdings refunded each year when you file your return, maybe you should consider stopping the withholding since something seems to be triggering the action by the IRS.  

@dane1234

[Becky G]

This is the 1st year this has happened to me. I filed 2/3 accepted same day about 3 weeks later wmr said delayed. I called to see what the problem was and they said I was in errors dept and will receive a notice but they can't tell me why. I got the notice 3/6 dated for 3/4 saying I had 20 days to sens proof of my claimed withholdings because it didn't match their records. The only thing different this yr was unemployment which I had taxes taken out of. Anyways I faxed all my documents proving what I claimed the very next day (3/7). My transcripts and online account show I haven't even filed a return and wmr says delayed. I called last week to make sure they got my fax and they said they have zero records of my info to upload on the documentation tool online so I went ahead and did that. Still nothing!!! Everytime I call the number on the letter it directs me to a payment line which I don't owe anything or atleast they haven't said I do. I get redirected to customer service and they can't tell me anything they say they have no clue what's going on. I can't find help or information anywhere. Please if you get answers or your return can you update :). Sorry I can't help but wanted to respond seeing I don't know anyone else that had this happen.

[JohnB5677]

You might have some luck getting through locally.  Make an appointment and hand-carry your documents to them.  I've never had success with faxing unless there was someone there to physically pick it up and confirm they had it. 

Taxpayer Assistance Center Local IRS Office

[dane1234]

With my 2022 federal return, has now happened four years in a row, get IRS 12C letter asking for a copy of my 1099-SSA witholding and my 1099-R  IRA withholding.  Send those copies in and then receive originally requested refund amount.  I have taxes withheld from both accounts because in some years I have 1099-NEC consultant earned income, from which taxes are not withheld, and I hate having to pay additional when doing my taxes.