Well folks, all is not well for me in LM land. Probably bit off more than I could chew, but regardless. Let me explain...

Filed a regular (late) 1040 for 2013 in December 2014. I had to file quickly for reasons I won't get into here. Then, since I had redeemed ALL of my checks in lawful money for 2013, I filed an amended 1040x including the lawful money deduction end of February 2015. Probably should have let it go, but there it is. Unfortunately today I received a 3176C letter stating that I have submitted a 'return or purported return claiming one or more frivolous positions'.

So I'm supposed to file a 'corrected return' within 30 days or they will start the collection process. But I've ALREADY filed an original return! And where does it say taking a lawful money deduction is 'frivolous'. And this coming off just receiving my LM REFUND for 2014!!! So surely mentioning the 2014 refund in my defense of 2013 will draw red flags for THAT return, no?

I'm beside myself. I'm considering calling them to explain that I have already filed a return. I can't file again, right? Where is their evidence that taking a LM deduction is 'frivolous'? They can surely DENY the amended refund, but to call it frivolous and punish me for another $5000?!! I've been down this road too many times with CTC returns and I DO NOT WANT TO PAY THAT AGAIN! At best I'd like to stalemate them into not collecting.

Any suggestions are welcome. I'm also considering contacting Marc Stevens as well, but I know David and others have great ideas here as well.
imm

itsmymoney

Posts: 212
Joined: Sat Sep 03, 2011 3:34 pm