What if you receive Bank One Check instead of Income TAX check?

Question

2004 I filed an income tax with a company. 2 or 3 weeks later I recieved Bank One check from that company. I do not know back then if they have the right to issue me the income tax check.

Shockingly, a year later, I end up pay back to the IRS for almost 10K.

I want to make a fraud report on this company. Is it too late?

Nit.

Answer 1

Most likely you told them to deduct their fee from your refund check, that's why they gave you a Bank One check. Your refund was sent to their bank and they deducted the fees and sent you the balance. (This is not a smart way to proceed, their fees are extremely high for that service.)

Without the details on the debt to the IRS, there's no way to determine if the tax preparer made an error or it was a totally different issue from another tax year.

And even if it was an error on their part, they are not liable for the tax due. You, as the taxpayer, are solely responsible for the accuracy of the returns you file. If there was fraud involved, you signed off on the return so YOU are a party to the fraud.

Answer 2

I would check with the IRS as to what exactly ended up happening with your 2004 taxes. The company you filed the 2004 taxes through should have given you a copy of the return that they prepared for you, which also should have given you how much the refund should have been. You also should have gotten something from the IRS as to what you owed them the almost $10K for. Those should be your first steps. You are responsible for any taxes owed from 2004, but if the company that prepared your return for you made an error you may be able to get them to pay the penalties and possibly part of the interest. Good luck.

Answer 3

Were your taxes filed or not? If the preparer filed your taxes, go back to that preparer with the letters from the IRS. They may be able to explain better to you what happened and why you owe this money.

From your question it is hard to determine if there was fraud on the part of the preparer. If they made an error, they should prepare your amendment for free.

You are responsible for taxes owed.