Issue with getting stimulus fund from IRS?

Question

hi

i have a two part last name like below

firs nmae: x*x

last name : yyyy-zzzzz

when my tax consultant filed the tax returns for the year 2007, he didnt specify the "-" in my last name between the two words....this had created some confusion with IRS and they are talking about some 4 part letter last name

which i dont totally understand how it works... IRS says that the 4 part letter name they have doesnt match with what social security has....but when i checked with social security office, they said everything looks ok... (this is totally driving me nuts here..)

because of this, IRS dont want to release my stimilus fund and asked me to wait till next year and file my returns

with "-" in my last name and claim ther stimulus fund thereafter

does anyone had the same isse with the last name...please explain how it works

Answer 1

As Sharon noted, this is due to how the computer reads the name. If a hypen is missing, then a mismatch occurs resulting in what is called an "invalid TIN." (A TIN is the tax payer Identification Number, which for individuals is the Social Security number). Since the stimulus payment law stipulates that only those with valid TINS can receive the payment, those with mismatches do not qualify. You should, however, be able to receive it next year when you file your 2008 tax return. There's no need to file an amended return.

The only time the IRS can do an adustment to the account to allow the stimulus check is when they verify that the name on the Social Security card matches what is on the tax return. This doesn't sound like it's the case with you.  

Answer 2

The IRS database matches the first four letters of your last name with their Master File data, which they get from Social Security Adm.  Here is how it works:

Mary Smith Jones         is read as JONE

Mary Smith-Jones         is read as SMIT

The hyphen is critical to name match because it makes the computer read it as all one word.

You should be able to work this out by contacting IRS.  You may have to write a letter or even file Form 1040X to change the name (that won't be necessary if you get to the right person at IRS).

Call them again and don't ask for the Stimulus dept.  Ask for a Second or Third Level person.  Explain you have a name match issue.

Meanwhile, look at your SS card.  Does it have SMITH JONES or SMITH-JONES?  Have it handy when you call.

I've been able to solve this problem several times over the phone for clients (with them present).  If your tax consultant had your correct name and omitted the hyphen, he/she should be willing to trouble-shoot this for you without additional charge.