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This is why the whole system is broken fr. They make it impossible for working parents AND care providers to do the right thing without fear of losing benefits smh
Facts šÆ The whole system needs an overhaul
I went through this exact same situation last year with NYS. The good news is that you can absolutely satisfy their verification requirements without the provider's SSN. Here's what worked for me: 1. Compile ALL your payment records - bank statements, canceled checks, receipts, anything showing money going to your provider 2. Create a simple spreadsheet listing dates, amounts, and payment methods 3. Write a brief letter explaining that your provider is unable to provide SSN due to disability benefit concerns, but attach all payment documentation I submitted everything online through the NYS tax portal (much faster than mailing) and they accepted it within 2 weeks. The key is showing a clear paper trail of legitimate childcare payments. They're really just trying to verify you actually spent the money you claimed. Don't stress too much - as long as you have solid payment records and submit before March 10th, you should be fine. The SSN requirement seems to be more of a "preferred" documentation rather than absolutely mandatory when you can prove the expenses through other means.
Has anyone actually called the business where you work to see if there's an issue with their tax payments? It seems weird the IRS would come after an employee for the employer's share unless you're somehow classified as self-employed or a contractor.
Romeo, based on what you've found in your 2020 tax return with the Schedule SE deferral, this makes perfect sense now. The confusing "employer's share" language in the 3064C letter is referring to the employer portion of self-employment tax, not your W-2 employer's obligations. When you're self-employed, you pay both the employee AND employer portions of Social Security and Medicare taxes (that's why self-employment tax is 15.3% instead of the 7.65% taken from your paycheck). The CARES Act allowed you to defer paying half of that self-employment tax - specifically the "employer" half. Since you used TaxSlayer and it automatically selected the deferral option, you legitimately owe this money. The $2,700 seems high though - double-check that amount against what you actually deferred. You should be able to find the exact deferred amount on your 2020 Schedule SE. Don't stress too much about this being a "mistake" on your part. The tax software recommended it because it was financially beneficial at the time. Now you just need to pay what you deferred. If you can't pay it all at once, definitely set up a payment plan with the IRS - they're usually very reasonable about installment agreements for deferred pandemic taxes.
Holly's explanation is spot on! I went through something very similar when I got my 3064C letter. The "employer's share" terminology is definitely confusing when you're used to thinking about regular W-2 employment. One thing to add - when you're checking your 2020 Schedule SE against the letter amount, make sure you're looking at the right tax year. Some people deferred taxes in both 2020 and 2021, so you might have deferrals from multiple years that are now coming due. The IRS should have sent separate letters for each year, but it's worth double-checking. Also, Romeo, don't beat yourself up about the tax software automatically selecting this option. Pretty much every major tax program was recommending the deferral during the pandemic because it genuinely helped people's cash flow when times were tough. You weren't the only one who didn't fully realize what it meant for future payments.
Called the Iowa DOR yesterday and got through after 45 mins on hold š They said theyre overwhelmed with calls about delays. basically told me to just keep waiting lol
classic government response smh
Just went through this in March. Here's what you need to know: ⢠Use CERTIFIED mail with tracking - non-negotiable ⢠Send COPIES only, never originals ⢠Include your case/letter number on EVERY page ⢠Keep copies of everything you send ⢠Expect 6-8 weeks minimum processing time ⢠Check WMR tool weekly, not daily (wastes time) ⢠Don't bother calling regular IRS lines - agents can't access verification status
I went through the mail verification process last fall and it was honestly less stressful than I expected once I got organized. The key is being thorough upfront - I made sure to send exactly what they requested, used certified mail with tracking, and included my letter reference number on every document. It took about 6 weeks total from mailing to getting my refund deposited. The hardest part was just being patient and not constantly checking the "Where's My Refund" tool every day! One tip: take a photo of everything before you mail it so you have a record of exactly what you sent. Good luck with your verification!
This is really reassuring to hear! I'm a first-time filer dealing with this verification process and was honestly pretty anxious about mailing sensitive documents. Your tip about taking photos before sending is brilliant - I hadn't thought of that but it makes perfect sense for keeping records. Did you use any specific type of certified mail service, or is the standard USPS certified mail sufficient? Also, when you say "don't check daily" - I'm already guilty of that and it's driving me crazy! Thanks for sharing your experience, it helps a lot to know what to expect.
Andre Laurent
I feel like I'm taking crazy pills reading these responses. You guys realize the IRS is just fishing for information, right? These LTR 324C letters are often automated and sent out as part of their collection efforts. I got one for "filing status" but my CPA said unless they're specifying an actual problem, it could just be a fishing expedition.
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Zoe Papadopoulos
ā¢That's really bad advice. LTR 324C is a legitimate request for information and ignoring it can lead to adjustments to your return, additional taxes, penalties and interest. I work in tax preparation and these letters are specific requests, not "fishing expeditions." Respond with the requested documentation by the deadline.
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NeonNinja
I dealt with a similar LTR 324C situation last year and wanted to share what worked for me. The key thing is to respond promptly and provide clear documentation that supports your filing status claim. Since you filed as Head of Household with your daughter, you'll want to gather documents that prove two things: 1) your daughter lived with you for more than half the year, and 2) you paid more than half the costs of maintaining your home. Good documents include: school enrollment records showing your address, medical records with your address, any childcare receipts, grocery receipts, utility bills in your name, rent/mortgage statements, and bank statements showing you paid household expenses. Also keep in mind that if your daughter's other parent claimed her as a dependent on their return, that could trigger this letter even if you're entitled to Head of Household status. The IRS computer systems flag these potential conflicts automatically. Don't stress too much - this really is just a verification process, not an accusation of wrongdoing. Just respond by their deadline with organized documentation and a brief cover letter explaining your situation.
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Amina Diallo
ā¢This is super helpful! I'm new to dealing with IRS letters and this breakdown makes it way less scary. Quick question - when you say "brief cover letter explaining your situation," do you mean like a formal business letter or just a simple explanation? I'm worried about saying too much or too little and making things worse.
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