2007-01-27 12:08:16 · 6 answers · asked by legzzzz 1 in Business & Finance ➔ Taxes ➔ United States
If you just found out that you owe for 2005 taxes...most likely it was the IRS that informed you of that via a letter.
You will not get a refund of any taxes until you pay what you owe them. Any refunds in future years tax returns will go toward what you owe...they will keep the refund.
I suggest that you call the IRS immediately and makes arrangements to pay what you owe as soon as possible. The longer it takes you to pay the balance off, the more interest you pay, because the IRS keeps adding interest. If you don't make the first move....they will go as far as garnish your pay.
2007-01-27 12:29:58 · answer #1 · answered by breezygirl 3 · 0⤊ 0⤋
If you owe back taxes, you are not allowed to get a Refund Anticipation Loan. The loan application specifically asks this question. If you do apply, the bank will most likely find out that you have back taxes and decline the loan.
When you do file your return, your back taxes, federal and state, will be deducted from any refund you are getting. You will be given the balance of the refund, if any.
In your case, you would need to pay for your return preparation before the return was filed. I suggest just e-file the return and have the IRS send you the balance. It will save you money in the long run, since you won't pay any bank fees.
2007-01-27 12:15:25 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
Rapid Refund was the term used by one of the large tax prep companies for their 'refund anticipation loans'. The IRS filed a lawsuit a few years ago to prevent use the the misleading term. If you are asking about a direct deposit, it probably will be delayed.
2007-01-27 14:03:59 · answer #3 · answered by STEVEN F 7 · 0⤊ 0⤋
Rapid refund is basically a loan from the tax preparer which you repay when your actual refund is received.
If you owe taxes from a previous year, the IRS will deduct this amount from your refund which may make you come up short when you repay the rapid refund.
2007-01-27 12:12:32 · answer #4 · answered by TaxGurl 6 · 0⤊ 0⤋
The IRS will probably reduce your refund by the amount of 2005 taxes you owe. (I am assuming that you filed a 2005 tax return showing an amount due, but that you have not paid it.)
2007-01-27 12:13:22 · answer #5 · answered by Take Responsibility 2 · 0⤊ 0⤋
if you did a tax return for 2005 you should have knew it then. you just didn't want to pay it, so now you will have to pay even more.
2007-01-27 12:17:39 · answer #6 · answered by Anonymous · 1⤊ 0⤋