(Closed) What happens if the IRS thinks you did something wrong?

posted 5 years ago in Legal
Post # 3
Member
6209 posts
Bee Keeper
  • Wedding: August 2013 - The Liberty House

Just don’t spend the refund money if you’re that worried!

Post # 5
Member
6209 posts
Bee Keeper
  • Wedding: August 2013 - The Liberty House

@peachacid:  can you ask an accountant?

Post # 7
Member
744 posts
Busy bee
  • Wedding: April 2013

I literally just did mine and I was SHOCKED at my refund amount. I have NEVER ever gotten this much back before.

 

I can tell you that in 2010 I forgot to include a 401k withdrawal that I made on my tax filings. They sent me a notice in March of 2012 acknowledging the error and I owed them $1800 in penalties. I just put myself on an installment plan of $27/month and it was no big deal.

 

ETA: The installment can be as high or as low as you want it to be. I chose $27 as a safe number but in reality I paid them like $150/month. Paid it off and that was that.

Post # 8
Member
6209 posts
Bee Keeper
  • Wedding: August 2013 - The Liberty House

@peachacid:  I meant if you have any old friends or coworkers, etc. Also, some accountants will look at it for free.

Post # 9
Member
1857 posts
Buzzing bee
  • Wedding: March 2013

@peachacid:  I file only Canadian taxes but I’m guessing the idea is the same. A friend of mine was overpaid in her refund a few years ago and when her taxes were reviewed, she received a letter telling her she needed to pay them back. I think she was able to pay in installments, because the amount was large enough that she couldn’t easily pay it in full. I’d assume if you are getting back too much and it’s caught, something similar will happen.

Post # 10
Member
2790 posts
Sugar bee
  • Wedding: March 1996

We messed up once and they sent us a thing saying we did it wrong, we really were only owed a refund of X, and then they sent us X back instead of the X+5 we’d thought we were owed. I would try not to worry about it. If you made an error, they’ll probably catch it.

Post # 11
Member
8706 posts
Bumble Beekeeper
  • Wedding: September 2013

@peachacid:  LOL. I work at the IRS. I’m going to sit back and read some of the responses people give you.

 

PS: If your return raises ANY red flags it WILL be audited and they will ask you to prove certain things

 

ETA: audited OR they will disallow something and send you a bill

Post # 14
Member
9057 posts
Buzzing Beekeeper
  • Wedding: June 2010

@peachacid:  I live in Canada so things may be slightly different, but essentially the year we got married I noted that I got married in July and did the return as a married couple.  Got very little refund.  then I got sent a letter and a large cheque saying because I got married halfway through the year, I was actually entitled to a larger refund based on the months jan-July that I wasn’t married. Fast forward to summer 2012, and I get another letter that pretty much said “oops, your original return was correct, but you still owe us the refund we accidentally gave you, plus two years interest, due in 30 days”. 

So, I’d say yes, they just take it back. 

Post # 15
Member
509 posts
Busy bee
  • Wedding: March 2013 - Callanwolde Fine Arts Center

@peachacid:  You could go to HR Block for a free double check on your taxes. Make sure you print out all of the forms and bring them with you.

Post # 15
Member
2023 posts
Buzzing bee
  • Wedding: May 2013

@gelaine22:  I prepare tax returns! haha…  I look at notices from you guys all the time!

 

@peachacid:, she’s right!  They’ll let you know if they find anything wrong!   Did you file a 1040 or a 1040EZ?  If you itemize or have Sch C income, then youre more likely to be audited (because you have more stuff going on!)

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