I was sent a letter from the IRS about 6 months back saying I still owe 200$ for unclaimed income for my 2004 taxes. I have filed for my 2006 taxes already, and am looking at a nice refund. Will the IRS hold this refund untill the other tax is paid, will they deduct what is owed and pay me the difference, or will i recive my refund with no problems??
2007-01-22 04:09:38 · 8 answers · asked by dlowdog 1 in Business & Finance ➔ Taxes ➔ United States
A couple of things can happen, the IRS could withhold the $200 you owe and send you the remaining balance (most likely case), or they will send you the whole refund, but you would still be responsible for the $200 you owe, and the longer you take to pay it back the more you will owe due to penalties and late fees, my suggestion if they send you the whole refund is that you immedietely send them the $200 you owe them, because if they don't automatically keep the $200 you owe, and you don't pay it, they could in a few years keep the $200 plus interest, penalties, late fees, etc.--I know this cuz my hubby tried to "not" pay one year, I didn't know about it, as we weren't married at the time, then in year 5 of our marriage, the refund I thought we were going to get, and what we actually rec'd were totally different, he owed $175 dollars and ended up paying almost $1000 with interest and fees that were tacked on---so pay it now and avoid the mess later on.
2007-01-22 04:16:31 · answer #1 · answered by HappyGoLucky 3 · 0⤊ 0⤋
Hard to tell. What did you do with the letter you got? If you ignored it, then they will likely just take the $200 plus any penalties and interest from this year's refund. If you responded and agreed with them, then if you didn't pay, they'll probably take it from your refund. If you responded but disagreed that you owe the amount, and provided info on why, but it hasn't been finalized yet, then you'll probably get your whole refund.
2007-01-22 05:27:41 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
They will probably deduct the amount owed plus a penalty plus a nice chunk of interest. Hey, those soldiers fighting in Iraq do not work for free you know.
2007-01-22 04:12:29 · answer #3 · answered by Tones 6 · 0⤊ 0⤋
If you owe the IRS - they will take their money out of your current refund and send you the difference.
2007-01-22 04:12:31 · answer #4 · answered by lifesajoy 5 · 0⤊ 0⤋
You will generally recieve your refund clear with no deduction. The reason is if they deduct the money then they can no longer charge you fees and interest which is what they are doing to your overdue $200.00 whether you realize it or not.
2007-01-22 04:12:56 · answer #5 · answered by brett.brown 3 · 0⤊ 0⤋
I'm not sure, but I think they'll deduct the $200 you owe.
2007-01-22 04:12:17 · answer #6 · answered by Emily B 4 · 0⤊ 0⤋
They usually withhold what you owe and then send the difference.
2007-01-22 04:13:54 · answer #7 · answered by Scotty 6 · 0⤊ 0⤋
Yes they will
2007-01-22 04:12:45 · answer #8 · answered by evanesheaven1985 2 · 0⤊ 0⤋