I filed a correct return. Two months later, they have asked me for additional documentation (on capital gains, line 13) that is clearly not required based on the instructions in the 1040 instructions. A delay of two months of funds has a significant interest realization. So... they can charge me interest if I delay in providing a correct return, but are not responsible if they do not play by their own rules. Why, and what recourse do you suggest, if any? If they want an audit, why don't they just do so? If I were audited, would they also hold my funds until I proved to their satisfaction that I was following the applicable tax laws?
2007-04-15 13:54:08 · 5 answers · asked by kelly 1 in Business & Finance ➔ Taxes ➔ United States
Because being a government agency they have been made not accountable to citizen. Horrible but true.
2007-04-15 13:58:23 · answer #1 · answered by Anonymous · 1⤊ 1⤋
The IRS does pay interest on late refunds. And they do pay the same rate that they charge on late payments by taxpayers, currently 4% per annum. However not a single refund is late yet. The IRS has 45 days from the fling date or the filing deadline, whichever is later, to issue a refund or interest will start to accrue. Therefor they won't start paying interest on any refunds where the return is filed by the April 17th filing deadline unless the refund is not paid due to IRS delays by June 2nd.
2016-05-21 00:31:56 · answer #2 · answered by ? 3 · 0⤊ 0⤋
The IRS actually has a limited time to get your refund to you and then they do have to pay interest. Generally it's 45 days from the due-date of the return or 120 days from the date the return is filed. If they ask for additional information and you respond quickly they don't get any extra time to return your money to you without paying you interest at the prevailing rate, currently 8% per annum.
I was audited a number of years ago and actually was owed money by the IRS when the dust settled. They paid me the refund on the spot at the IRS office and I got a check for 2 years worth of interest a few weeks later.
2007-04-15 14:16:21 · answer #3 · answered by Bostonian In MO 7 · 2⤊ 0⤋
If you can actually prove the IRS was negligent, citizen can be paid interest for undue delays. If the IRS believes there were additional information required to justify what you wrote in the form, they can legally ask for additional proof.
One thing you can do to protect yourself is to adjust your withholding, so that you don't have so much refund coming to you.
On the same token, if you have returns, that means you loaned IRS that much money (by overpaying) interest free for up to a year + filing date. I do not believe you can justify you are owed interest for few months they took to process the return. Simply stated, refund means you volunteered your fund to IRS by not properly adjusting withholding.
2007-04-15 14:06:39 · answer #4 · answered by tkquestion 7 · 0⤊ 0⤋
Ho Hum. And how much is the interest you are looking at?
2007-04-15 13:58:16 · answer #5 · answered by smiling_freds_biz_info 6 · 0⤊ 0⤋