U.S.

February 2, 2013

Tax Assistance Center officer goes above, beyond, earns service member $100K tax refund

Tags:
Maranda Flynn
Staff Writer

Col. Dan McFarland, Fort Huachuca garrison commander, presents Capt. Kyle Dietrich, trial counsel, Fort Huachuca Office of the Staff Judge Advocate, with an Army Achievement Medal at the opening ceremony of the tax center on Monday. The captain gained a service member $100,000 from the Internal Revenue Service in 2012 after the individual questioned a previous-year payment made to the IRS. Dietrich researched the issue and found the service member’s payment had been made in error, garnering the individual a refund.

A captain stationed here and 2012 officer-in-charge, or OIC, of the Fort Huachuca Tax Assistance Center, or TAC, received a medal this week for gaining a service member a large sum of money from the Internal Revenue Service, or IRS.

Capt. Kyle Dietrich, trial counsel, Office of the Staff Judge Advocate, received an Army Achievement Medal, or AAM, from Col. Dan McFarland, Fort Huachuca garrison commander, on Monday during the opening ceremony of the Fort Huachuca TAC.

In 2012, Dietrich represented a service member whose house was wrongfully foreclosed on by the individual’s mortgage lender in 2009. According to Everett Maynard, Jr. attorney at law, who nominated Dietrich for the award, the mortgage lender failed to obtain a court order to seize the house, as required by the Servicemembers Civil Relief Act, while the service member was deployed. In response, a settlement was paid in the amount of $350,000 to the service member, along with a Form 1099-MISC.

The service member had his taxes correctly filed by a commercial tax service, and because the settlement was filed with a Form 1099-MISC, it as designated as a monetary gift and was counted as taxable income. He was then obligated to pay federal and state income taxes of approximately $100,000 on the settlement amount.

After coming to the TAC for an unrelated tax issue, the service member inquired about the income taxes that he had to pay on the settlement. Dietrich examined the details and found that the mortgage lender should not have filed the settlement payment as taxable income via the Form 1099-MISC, but should have filed it as capital gain to the service member.

After contacting the legal representative for the mortgage lender, and many attempts to convince them that the settlement was not taxable, the lender’s legal representative maintained the position that the settlement payment was correctly filed.

Dietrich contacted an IRS tax law advisor and inquired about the wrongful classification of the settlement. After research was conducted in the case, the advisor agreed that the settlement funds were not taxable. Dietrich was instructed to have the service member submit an amendment to the previous tax return and specify the funds as a capital gain. Once this was completed, the service member was then refunded the $100,000 that he had previously paid for the federal and state income taxes.

According to a staff judge advocate on Fort Huachuca, the effort Dietrich put forth involved a great deal of persistence in dealing with the IRS and the mortgage lender. It also demonstrated the added value that the tax center and the legal assistance office offer to service members. The 10 personnel who work at the tax center have been volunteered by their commands to assist for four months, and they have already completed almost an entire month’s worth of training. They are highly motivated and working hard.

“I was just happy that I could help … the real credit goes to the people that I worked with at the tax center,” Dietrich said. “I knew that the day-to-day operations, they could handle and there was nothing really for me to do … so I didn’t have to worry about whether or not we were getting taxes prepared in a timely manner. It’s a real testament to them and the job that they did.”

After McFarland presented Dietrich with the AAM, Col. Timothy Cody, staff judge advocate, Fort Huachuca, said, “Captain Dietrich’s efforts are a great example of Soldiers at Fort Huachuca doing great things for Soldiers.”

When talking with the mortgage lender’s legal representative, Dietrich found out that more than 180 service members had received a foreclosure settlement from the same company. There may be other service members who could be in this same situation. Those with questions should contact the Fort Huachuca TAC, 533.1040 or 533.1080.




All of this week's top headlines to your email every Friday.


 
 

 
Stephanie Caffall

Fort Huachuca volunteers recognized at luncheon

Stephanie Caffall Guests gather at the Volunteer Recognition Luncheon Wednesday to celebrate the dedication and community service of Fort Huachuca’s volunteers. The 2015 Fort Huachuca Volunteer Recognition Luncheon was hosted...
 
 
Natalie Lakosil

40th ESB holds change of responsibility ceremony

Natalie Lakosil Outgoing Command Sgt. Maj. John Reinburg snaps the non-commissioned officer’s sword closed signifying his last official act as the command sergeant major and thereby cutting his ties to the unit. The 40th Expe...
 
 

Army Volunteer Corps shares philosophy on volunteerism

Special to The Scout Volunteering is a defining part of the American experience. From the Minutemen at Lexington to today’s all volunteer force, the Army relies on the fundamental connection between volunteerism and citizenship. The strength of the Army lies in its Soldiers, and the strength of Army communities lies in the talents and contributions...
 

 
Natalie Lakosil

305th MI Bn. hosts Resiliency Rodeo for busy Soldiers

Natalie Lakosil In front of his Soldiers, Command Sgt. Maj. Edward Baptiste, 305th Military Intelligence Battalion, helps demonstrate Bronco’s military woroking dog capabilities with the help of handler Pfc. Gabby Giffiths, 1...
 
 
Photo by Sgt. 1st Class Kristine Smedley

NCO Week recognizes professionalism, dedication of Soldiers

Photo by Sgt. 1st Class Kristine Smedley Fifty-two Soldiers were inducted into the Noncommissioned Officer Corps on April 8 at Cochise College during NCO Week here. Fort Huachuca celebrated its first Noncommissioned Officer Wee...
 
 
DeCA photo

Commissary customer appreciation Stateside case lot sales return to offer up to 50 percent or more savings

DeCA photo Cases of groceries are lined up in a tent next to the commissary at Fort Lee, Virginia. Commissary Customer Appreciation Sales allow patrons an opportunity to save up to 50 percent or more on club-pack and full-case ...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>


Directory powered by Business Directory Plugin