Can you send your refund check back to the IRS because the tax service messed up?

Question

I was going to have my taxes done by a local taxes service, but decided against it because they seemed to be were not giving me the best service. So I cancelled their service.I had also the next day had them put a stop on my RAL.They said nothing was put through so the process was stopped on anything going through. I took back my W-2 and the woman I talk to said I did not owe them anything because I stopped their services before anything could be processed. Now a week and a couple of days later, I have a credit in my bank account from a tax refund. The tax service had put it through anyway, and they have taken out their processing fee. Because the refund cam back this late(RAL is 48 hours right), I think they processed after I this week without my permission. Now I have other deductions to be added and I was going to use another more reliable service, but how do I give the IRS the money back, with out just making admendments to my taxes. Also what do I do about this bad tax company.

Answer 1

You do not send back the refund that you received, but you may want to file an amended return to claim the additional deduction

If you discover an error after your return has been mailed, you may need to amend your return. The service center may correct errors in math on a return and may accept returns with certain forms or schedules left out. In these instances, do not amend your return!

However, do file an amended return if any of the following were reported incorrectly:

your filing status
your total income
your deductions or credits

Use Form 1040X (PDF), Amended U.S. Individual Income Tax Return, to correct a previously filed Form 1040 (PDF), Form 1040A (PDF), or Form 1040EZ (PDF). If you are filing to claim an additional refund, wait until you have received your original refund (you may cash that check). To avoid penalty and interest, if you owe additional tax for a current year amended return, file Form 1040X and pay the tax by April 15 of the current year.

http://www.irs.gov/instructions/i1040x/index.html

http://www.irs.gov/pub/irs-pdf/f1040x.pdf

Answer 2

Do not send back the check! Have the other tax service prepare an amended return on Form 1040X and mail it in. If there's more money coming back to you, the IRS will send you a check for the additional refund amount. If there is any tax due, pay it out of the refund check that you got, and make sure that it's filed by April 17, 2007 to avoid any penalties and interest charges.

You might go back to that first tax service and demand that they refund the fees that they deducted from your refund, though, as they weren't entitled to them and proceeded against your wishes. If they refuse, you might file a complaint for preparer misconduct with the IRS. If they're part of a national chain, file a formal complaint with their corporate office as well.

Answer 3

You can file an amended return with the IRS that includes the other deductions you found since getting rid of the Tax service. Use form 1040X, and hire a real CPA not a tax service if you need help. It will take longer to process with the IRS but you'll get the additional refund if you are actually qualified for the additional deduction you speak of.

As far as the refund with the services' fees already taken out, you are probably out of luck. But you should file a report with the Better Business Bureau which is pretty easy on the BBB Website.

Lesson learned to all you Yahoo Answer listeners out there is HIRE A licensed CPA not a tax service that is full of pseudo Tax Accountants.