Hi all, quick question for ya :) If a person owe's money from last years tax filing but has a great tax refund coming this year, will the IRS automatically deduct the negative from the credit due???? Thanks to all for answering my question !
2007-01-12 12:10:31 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
yes they will take out what they are due before they will issue a refund. on the tax forms one of the questions is whether or not you owe for back taxes. they then take that out of the refund amount, so you will need to know exactly how much you owe.
2007-01-12 12:20:18 · answer #1 · answered by nrsldy04 3 · 0⤊ 0⤋
Yup, they will. Plus all the interest and penalties.
If you have a debt to IRS, you SSN is put on the "Master Debtor File". As tax returns are processed for 2006, any SSN that matches a number on MDF gets re-routed for processing. It delays refunds generally one week while the IRS sorts out who is owed what.
2007-01-12 12:57:01 · answer #2 · answered by WealthBuilder 4 · 1⤊ 1⤋
Generally, yes they will. If last year's return is still under dispute or being processed, it's slightly possible that they won't.
2007-01-12 12:17:51 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
yes...it is automatically deductible.
2007-01-12 12:15:04 · answer #4 · answered by elvisjohn 7 · 0⤊ 0⤋
I believe so
2007-01-12 12:13:52 · answer #5 · answered by elizabeth v 5 · 0⤊ 1⤋