I got a letter from the IRS said I owe 2k. I sent it. They then sent me a check for the 2k. Now what?

Question

This was for the 2005 tax year. I used TurboTax that year and this one. Needless to say, I won't use TurboTax again.

Answer 1

This has nothing to do with Turbotax software. Everytime you get a tax discrepancy from IRS, it always is a result of human error.

On the letter you received from Uncle Sam, it stated the reason for this additional $2K tax due. Most likely you did not report all your income i.e. 1099s, W2s, etc. that IRS already have a copy of from the payers.

Bottom line is do you owe IRS this $2K. If you don't owe them, then cash the check. If you do owe them, then send the check back along with a note explaining why you return it. If you cash it, they will start charging you that 20% (or whatever it is) interest on this $2K until they get it back from you.

Answer 2

When they sent you the letter saying you owed $2000, they should have said why they thought you owed it. The letters aren't always right, since sometimes they don't have complete information.

I'd call and ask what's going on. Sounds a little weird. And doesn't sound like it was TurboTax's fault.

Answer 3

I recommend you call the IRS and get this cleared off. Otherwise you risk being contacted at the worst time for that money back, and that you would not want.

Answer 4

I don't understand. You paid them and then they sent you the money right back? I would talk to an IRS agent about all of this.

Answer 5

Contact the IRS and make sure that money was yours. God forbid you spend any of the govt's money they will come take your whole life savings or put you in jail.

Answer 6

Call them and talk to an agent. They should be able to clear it up for you.

Answer 7

hide quick change your name change identity take the money and run


hehe

Answer 8

just keep it. if they want it they'll contact you again