This is the first time I have received one of these. The interest income totaled $53. I don't remember getting a check from them for this amount. I had $1,500 or so overpayments the last two years. I didn't think the IRS would pay you interest for the amount of time they had your overpayment. With as low as interest rates were around this time I wouldn't think that would add up to $53 in interest.
The description reads: The amount of interest paid to you in the calendar year shown (2005) is on an overpayment of federal tax.
$53 bucks in interest I never expected. Is this the new IRS I've been hearing about? :-)
2006-10-14 20:55:00 · 6 answers · asked by BbA 2 in Business & Finance ➔ Taxes ➔ United States
I checked my Direct Deposit activity and indeed my expected return amount deposited for Tax Year 2004 was $53 higher than what was on my form.
There are so many people that send too much through their employer withholdings and get back a big check. I always thought it was a shame because that money could be in a bank but some people don't have the necessary savings skills. Now at least they are getting interest on it, albeit not at the best rates I'm sure.
So the question remains... Is this common? Has the IRS done this for some time or is it new?
2006-10-14 21:04:22 · update #1
Someone asked below: "Is it possible that your refund was held up by the IRS for some reason?"
I don't think the IRS was at fault for any delay in refunding me the money. I did file an extension to send in my return in August instead of April 2005. I would think they wouldn't pay interest for that time they had my refund because it was me holding them up on sending it out. Are they just really nice now?
2006-10-15 18:18:21 · update #2
Yes. This interest is taxable income on your Federal return and also on your state return.
The IRS pays interest on any refund delayed by more than 10 weeks from the date they receive the return. The interest would have shown in either a letter from the IRS or on the cheque itself. Sometimes these letters get lost in the post, and it's nearly incomprehensible on the cheque, so you may not have realized you received it.
2006-10-14 21:00:59 · answer #1 · answered by lizzit 3 · 3⤊ 0⤋
by utilising regulation, agencies are required to place up 1099 concepts to the IRS. If a organization would not, then they are very stupid, because of the fact the 1099 recipient can deliver a replica to the IRS, foremost to an audit and fines on the organization. If the organization would not supply you a 1099, and would not record something, then you definately are in that gray area the place in basic terms an IRS audit can seize you. although, maximum people who get a 1099 will anticipate that it quite is been sent to the IRS (that's the regulation), and could record that earnings. this could be a super pink flag for the IRS to determine out the organization in contact. in case you won a 1099, and record it, then you definately have no added tax criminal accountability. finally, you and the organization are the considerable components in contact. If considered one of you will not record something, that's the pink flag. If the two do, or the two do not, then the IRS would not know any further effectual. yet whilst the two are not going to record, then the varieties could desire to never have been accomplished.
2016-11-23 12:35:44 · answer #2 · answered by ? 4 · 0⤊ 0⤋
They only issue interest in the event they had your money longer than they should have. Normal, everyday tax refunds DO NOT include the interest you could have gotten from a bank if you'd had the money during the year.
Is it possible that your refund was held up by the IRS for some reason?
2006-10-15 02:07:26 · answer #3 · answered by Katie Short, Atheati Princess 6 · 1⤊ 0⤋
Answer to your question is "yes, IRS does pay interest for holding tax payers money too long."
Regardless of how it happened in your case, apparently IRS did paid you interest on the money they owe you. So now you have to pay tax for the interest income.
Treat the IRS 1099 just like any 1099 you receive from banks.
Best wishes.
2006-10-15 19:56:18 · answer #4 · answered by JQT 6 · 0⤊ 0⤋
This is entirely common. If the IRS paid you any interest for whatever reason you will get a form 1099 INT; you put this interest down on your SCH B just like bank interest earned.
2006-10-17 04:35:02 · answer #5 · answered by acmeraven 7 · 0⤊ 0⤋
It's not new but maybe a little uncommon. Something held up your refund and they owed you interest.
2006-10-15 03:06:30 · answer #6 · answered by porkchop 5 · 0⤊ 0⤋