we answered their request for backup information back in January and they still withheld over $3,000 of this year's refund. What can we do to get our money? We have proof she did not receive any unemployment in 2010 as we have a letter from the unemployment office showing a denial/exhaustion of benefits. Since they say she did, it factored into the tax calculation and the end result is then that our refund in 2010 would have been reduced. However, if you take out the amount they say she got, our calculation was 100% correct.
Consider seeking assistance from the IRS Taxpayer Advocate. There is an advocate in every state. Just search at www.irs.gov
Marty Davidoff, firstname.lastname@example.org, 732-274-1600. This answer is provided for general information only. You should seek advice from an attorney or tax professional.