I recently filed all my back taxes (6 years) with a CPA and while i'm waiting for the IRS to respond i filed my 2006 taxes and eligible to receive a refund. the CPA told me i did owe back tax money. I have not signed up for a IRS payment plan yet. will i get a refund this year?
2007-02-05 10:27:40 · 11 answers · asked by uptownchef27 1 in Business & Finance ➔ Taxes ➔ United States
No. They will put any refund toward your debt.
2007-02-05 10:34:58 · answer #1 · answered by Anonymous · 1⤊ 1⤋
The IRS will automatically deduct any outstanding balance that you owe them from any refunds you are due. There's no way round that. If you don't set up a payment agreement with the IRS expecting to wait until you file next year to pay off what you owe, two things can happen. The first is a certainty while the second is possible depending upon how quickly you file. 1. The IRS will add penalties and interest starting with the due date of the return (April 15, 2008) until the debt is paid in full. The net rate is about 10% per year but is calculated for every day that the debt is unpaid. 2. The IRS could levy your wages or bank account for the outstanding balance. They only do this if you ignore all efforts to settle the debt. The cheapest way out of this (assuming of course that you agree with their assessment; they don't always get it correct!) is to simply pay them ASAP. You can request a payment plan and start making monthly payments though there is a fee for that. If you are certain that you can pay them off in 120 days or less you can ask for an extension of time to pay. Send them whatever you can each month. IF your refund is enough to cover the unpaid balance, no harm and no foul. However if your refund is not enough to pay them in full you'll have to write them a check or get on a payment plan ASAP at that point. But before you do any of that you need to see if the IRS position is correct in the first place. If you admit that you failed to report some income and their numbers look right, just pay them. However if the IRS used incorrect assumptions -- such as $0 basis on the sale of stocks that you forgot to report on Schedule D -- then you need to prepare an amended return using the correct numbers. The IRS will then recalculate your debt and sent you an updated statement.
2016-03-29 06:38:46 · answer #2 · answered by Anonymous · 0⤊ 0⤋
NO. If you do owe back taxes for federal or your state that entity will withhold (keep) any refunds due to you to pay towards your tax debt. In the mean time the interest and penalties will continue until the tax debt is paid. You should immediately verify if you owe taxes and start paying immediately. I have been there and finally paid off my taxes owed. My sisters pay roll check was garnished for not following her payment plan. You should act fast, they could also report a tax lein or worse in your credit report. The only way you would recieve a refund this year is if they missed information that you owed. Which they usually find later, in turn the mistake will have you owing more money in the long run, then they still benefit because the interest and penalties are growing. Wish you luck , god bless
2007-02-05 10:42:52 · answer #3 · answered by Anonymous · 1⤊ 1⤋
No you will not get any refund that you might have reported on your 2006 return, that will automatically get applied towards any balance you owe. You can call the IRS now and set up the payment arrangements and get that underway. You don't need to wait for them to contact you. The Representative that you speak with when you call can input the agreement with you over the phone. Make sure to have copies of the returns when you call.\
1-800-829-1040
2007-02-05 10:39:12 · answer #4 · answered by Anonymous · 0⤊ 0⤋
All of the above answers are correct. Since you've entered your social security in I.R.S main frame computer, the computer will track every taxpayer and for whatever the reason he/she involved.
Your refunds will likely be automatic deducted from your refunds to the back taxes that you owed the I.R.S, then is to prevent any tax complications in future years . A quick tip: get a rapid refund.
2007-02-11 20:10:47 · answer #5 · answered by MINH H 3 · 0⤊ 0⤋
They will most certainly take it. This has happened to me. They even took my husbands money! We filed joint and even though I he completed a "Innocent Spouse" form, they still took it. They refunded his portion of the return about 3 months later. Set up a payment plan in the meantime. There is no way around it cause the next step is placing a lien on your property - present or future owned.
2007-02-12 09:25:24 · answer #6 · answered by Anonymous · 0⤊ 0⤋
While the IRS does have the right to "set off" your tax refund against back taxes, you may be one of the lucky taxpayers who receives a refund check in spite of owing back taxes. I have noticed that about 2-3% of my clients who are in your situation get refunds back when they shouldn't.
Kreig Mitchell
www.irstaxtrouble.com
www.irstaxtrouble.com/blog.htm
2007-02-10 06:09:21 · answer #7 · answered by Anonymous · 0⤊ 2⤋
If the IRS has processed your back tax returns, any refund for 2006 will be used to offset those taxes.
2007-02-05 10:43:35 · answer #8 · answered by Bostonian In MO 7 · 1⤊ 1⤋
No, if you owe back taxes they will apply it to the past due taxes. If you owe back taxes I would advise you to contact them for payment arrangements. They will do your taxes for you, or at least they did. That is your best solution.
If you don't they will hit you at a time in which you can not afford it.
2007-02-11 18:19:14 · answer #9 · answered by NJ 6 · 1⤊ 0⤋
No, unless the refund is larger than what you owe. They will deduct it.
2007-02-05 10:36:45 · answer #10 · answered by lavachk1 5 · 1⤊ 1⤋