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I think this place has more knowledgeable people than any other forum I visit so I have a question about a tax refund. My tax guy finished my taxes a couple of weeks ago and sent it in (electronically). I was getting around a $600 refund. After I got home, I found an error he had made with regard to our condo that we rent out. I went back to his office a couple of days later and pointed it out to him. He then re-figured everything and sent in an amended 1040. This amended return had me getting $350 back.

Now here is my dilemma. My $600 refund check arrived in the mail today. What action should I take. I am definitely not going to cash it but should I contact someone? Who- Dept of Treasury? IRS? The Baboo suggests that I just sit tight and wait on the IRS to contact me with directions on what to do.

What Say You?


BTW- Thanks in advance for any advice.

Put the $600 in the bank and send a check for $250 to the address for making a payment if you underpaid along with a copy of the correct 1040 and a letter explaining why. I'm guessing everything was done electronically?

lilclyde54 wrote:I think this place has more knowledgeable people than any other forum I visit so I have a question about a tax refund. My tax guy finished my taxes a couple of weeks ago and sent it in (electronically). I was getting around a $600 refund. After I got home, I found an error he had made with regard to our condo that we rent out. I went back to his office a couple of days later and pointed it out to him. He then re-figured everything and sent in an amended 1040. This amended return had me getting $350 back.

Now here is my dilemma. My $600 refund check arrived in the mail today. What action should I take. I am definitely not going to cash it but should I contact someone? Who- Dept of Treasury? IRS? The Baboo suggests that I just sit tight and wait on the IRS to contact me with directions on what to do.

What Say You?


BTW- Thanks in advance for any advice.

Go to the Motley Fool's Tax Strategies forum. There are knowledgeable people there (including but not limited to ptheland and irasmilo) whom you can trust to give you good advice, and some are enrolled agents. I'd suggest you wait until after April 18 to ask your question there, because the people who know what they're doing will be pretty busy until then and your question may get lost in the shuffle. --Bob

lilclyde54 wrote:I think this place has more knowledgeable people than any other forum I visit so I have a question about a tax refund. My tax guy finished my taxes a couple of weeks ago and sent it in (electronically). I was getting around a $600 refund. After I got home, I found an error he had made with regard to our condo that we rent out. I went back to his office a couple of days later and pointed it out to him. He then re-figured everything and sent in an amended 1040. This amended return had me getting $350 back.

Now here is my dilemma. My $600 refund check arrived in the mail today. What action should I take. I am definitely not going to cash it but should I contact someone? Who- Dept of Treasury? IRS? The Baboo suggests that I just sit tight and wait on the IRS to contact me with directions on what to do.

What Say You?


BTW- Thanks in advance for any advice.

uh, you have a tax guy, he did both filings, this ain't his first rodeo...ask your tax guy.

Bob is probably correct in what will happen in the end, plus along with the letter I would send copies of both filed returns, however the payment address is likely to be different than for when you send a return with payment to be processed.


ask your tax guy, that's what you paid him for.

Bob78164 wrote:

lilclyde54 wrote:I think this place has more knowledgeable people than any other forum I visit so I have a question about a tax refund. My tax guy finished my taxes a couple of weeks ago and sent it in (electronically). I was getting around a $600 refund. After I got home, I found an error he had made with regard to our condo that we rent out. I went back to his office a couple of days later and pointed it out to him. He then re-figured everything and sent in an amended 1040. This amended return had me getting $350 back.

Now here is my dilemma. My $600 refund check arrived in the mail today. What action should I take. I am definitely not going to cash it but should I contact someone? Who- Dept of Treasury? IRS? The Baboo suggests that I just sit tight and wait on the IRS to contact me with directions on what to do.

What Say You?


BTW- Thanks in advance for any advice.

Go to the Motley Fool's Tax Strategies forum. There are knowledgeable people there (including but not limited to ptheland and irasmilo) whom you can trust to give you good advice, and some are enrolled agents. I'd suggest you wait until after April 18 to ask your question there, because the people who know what they're doing will be pretty busy until then and your question may get lost in the shuffle. --Bob

If you wait until after the 18th, you will have to pay a penalty and interest.

triviawayne wrote:

lilclyde54 wrote:I think this place has more knowledgeable people than any other forum I visit so I have a question about a tax refund. My tax guy finished my taxes a couple of weeks ago and sent it in (electronically). I was getting around a $600 refund. After I got home, I found an error he had made with regard to our condo that we rent out. I went back to his office a couple of days later and pointed it out to him. He then re-figured everything and sent in an amended 1040. This amended return had me getting $350 back.

Now here is my dilemma. My $600 refund check arrived in the mail today. What action should I take. I am definitely not going to cash it but should I contact someone? Who- Dept of Treasury? IRS? The Baboo suggests that I just sit tight and wait on the IRS to contact me with directions on what to do.

What Say You?


BTW- Thanks in advance for any advice.

uh, you have a tax guy, he did both filings, this ain't his first rodeo...ask your tax guy.

Bob is probably correct in what will happen in the end, plus along with the letter I would send copies of both filed returns, however the payment address is likely to be different than for when you send a return with payment to be processed.


ask your tax guy, that's what you paid him for.

The tax guy should have been smart enough to send the repayment with the corrected return.

If you want to stay on hold for over an hour, call the IRS help line.

Cash the $600 check.

Then write a check for the difference. Notate 2016 1040X on your check. Reprint a blank transmittal form and write your $250 in. It will all eventually match up.

-----
As a general rule, do not file an amended return until the original return has been processed.

bazodee wrote:Cash the $600 check.

Then write a check for the difference. Notate 2016 1040X on your check. Reprint a blank transmittal form and write your $250 in. It will all eventually match up.

-----
As a general rule, do not file an amended return until the original return has been processed.

He did wait, but should have sent in the $250 with the 1040X.

Bob Juch wrote:

triviawayne wrote:

lilclyde54 wrote:I think this place has more knowledgeable people than any other forum I visit so I have a question about a tax refund. My tax guy finished my taxes a couple of weeks ago and sent it in (electronically). I was getting around a $600 refund. After I got home, I found an error he had made with regard to our condo that we rent out. I went back to his office a couple of days later and pointed it out to him. He then re-figured everything and sent in an amended 1040. This amended return had me getting $350 back.

Now here is my dilemma. My $600 refund check arrived in the mail today. What action should I take. I am definitely not going to cash it but should I contact someone? Who- Dept of Treasury? IRS? The Baboo suggests that I just sit tight and wait on the IRS to contact me with directions on what to do.

What Say You?


BTW- Thanks in advance for any advice.

uh, you have a tax guy, he did both filings, this ain't his first rodeo...ask your tax guy.

Bob is probably correct in what will happen in the end, plus along with the letter I would send copies of both filed returns, however the payment address is likely to be different than for when you send a return with payment to be processed.


ask your tax guy, that's what you paid him for.

The tax guy should have been smart enough to send the repayment with the corrected return.

If you want to stay on hold for over an hour, call the IRS help line.

Except the check didn't come until after that

Bob Juch wrote:

Bob78164 wrote:

lilclyde54 wrote:I think this place has more knowledgeable people than any other forum I visit so I have a question about a tax refund. My tax guy finished my taxes a couple of weeks ago and sent it in (electronically). I was getting around a $600 refund. After I got home, I found an error he had made with regard to our condo that we rent out. I went back to his office a couple of days later and pointed it out to him. He then re-figured everything and sent in an amended 1040. This amended return had me getting $350 back.

Now here is my dilemma. My $600 refund check arrived in the mail today. What action should I take. I am definitely not going to cash it but should I contact someone? Who- Dept of Treasury? IRS? The Baboo suggests that I just sit tight and wait on the IRS to contact me with directions on what to do.

What Say You?


BTW- Thanks in advance for any advice.

Go to the Motley Fool's Tax Strategies forum. There are knowledgeable people there (including but not limited to ptheland and irasmilo) whom you can trust to give you good advice, and some are enrolled agents. I'd suggest you wait until after April 18 to ask your question there, because the people who know what they're doing will be pretty busy until then and your question may get lost in the shuffle. --Bob

If you wait until after the 18th, you will have to pay a penalty and interest.

No penalty or interest as any tax owed for 2016 was all paid in 2016

On the very rare occasion when I paid my very uncomplicated taxes incorrectly, the IRS billed me but didn't apply any penalties. On the even rarer occasion when I undercalcuated my refund, they just sent it to me.

They have occasionally marked that I did something wrong which I provably have not done wrong, but it has never been, literally, worth pursuing; in one case they said "you did this wrong", though I hadn't, & have sent me my calculated refund anyway.

What really irks me is when they send me a check, even though I've clearly marked my bank account & routing # that I want the $$ sent to. IRS is not the only entity that has disregarded my bank account info when sending me $$.

I don't have a secure mailbox in any way. I could buy one at the PO I guess.

triviawayne wrote:

Bob Juch wrote:

Bob78164 wrote:Go to the Motley Fool's Tax Strategies forum. There are knowledgeable people there (including but not limited to ptheland and irasmilo) whom you can trust to give you good advice, and some are enrolled agents. I'd suggest you wait until after April 18 to ask your question there, because the people who know what they're doing will be pretty busy until then and your question may get lost in the shuffle. --Bob

If you wait until after the 18th, you will have to pay a penalty and interest.

No penalty or interest as any tax owed for 2016 was all paid in 2016

But then they refunded too much so there would be.

Bob Juch wrote:

bazodee wrote:Cash the $600 check.

Then write a check for the difference. Notate 2016 1040X on your check. Reprint a blank transmittal form and write your $250 in. It will all eventually match up.

-----
As a general rule, do not file an amended return until the original return has been processed.

He did wait, but should have sent in the $250 with the 1040X.

As I read the question, he did not wait. He filed an amended return before receiving the original (incorrect) refund back. After receiving the refund, then he should have filed the 1040X including the $250.... In other words, the amended return and additional payment should happen simultaneously, and should happen after processing of the original return had been completed.

bazodee wrote:

Bob Juch wrote:

bazodee wrote:Cash the $600 check.

Then write a check for the difference. Notate 2016 1040X on your check. Reprint a blank transmittal form and write your $250 in. It will all eventually match up.

-----
As a general rule, do not file an amended return until the original return has been processed.

He did wait, but should have sent in the $250 with the 1040X.

As I read the question, he did not wait. He filed an amended return before receiving the original (incorrect) refund back. After receiving the refund, then he should have filed the 1040X including the $250.... In other words, the amended return and additional payment should happen simultaneously, and should happen after processing of the original return had been completed.

You're right, he didn't wait. I guess he was hoping the correction would be processed before the incorrect refund was issued.

Bob Juch wrote:

triviawayne wrote:

Bob Juch wrote: If you wait until after the 18th, you will have to pay a penalty and interest.

No penalty or interest as any tax owed for 2016 was all paid in 2016

But then they refunded too much so there would be.

Apples and oranges; there would be no penalty

Thanks everyone. I knew there would be good advice here.

triviawayne wrote:

Bob Juch wrote:

triviawayne wrote:
No penalty or interest as any tax owed for 2016 was all paid in 2016

But then they refunded too much so there would be.

Apples and oranges; there would be no penalty

Only if he paid on or before the 18th.

Bob Juch wrote:

triviawayne wrote:

Bob Juch wrote: But then they refunded too much so there would be.

Apples and oranges; there would be no penalty

Only if he paid on or before the 18th.

the date won't change this to apples and apples or oranges and oranges

triviawayne wrote:

Bob Juch wrote:

triviawayne wrote:

Apples and oranges; there would be no penalty

Only if he paid on or before the 18th.

the date won't change this to apples and apples or oranges and oranges

There is a penalty for paying your taxes late.

Bob Juch wrote:

triviawayne wrote:

Bob Juch wrote: Only if he paid on or before the 18th.

the date won't change this to apples and apples or oranges and oranges

There is a penalty for paying your taxes late.

Not in all cases. In many instances it being you owing more the current year than the previous year. Interest likely will apply but no penalty.

BackInTex wrote:

Bob Juch wrote:

triviawayne wrote:
the date won't change this to apples and apples or oranges and oranges

There is a penalty for paying your taxes late.

Not in all cases. In many instances it being you owing more the current year than the previous year. Interest likely will apply but no penalty.

If I understand what you're talking about, that would have no penalty nor interest.

Bob Juch wrote:

triviawayne wrote:

Bob Juch wrote: Only if he paid on or before the 18th.

the date won't change this to apples and apples or oranges and oranges

There is a penalty for paying your taxes late.

which isn't what happened here

triviawayne wrote:

Bob Juch wrote:

triviawayne wrote:
the date won't change this to apples and apples or oranges and oranges

There is a penalty for paying your taxes late.

which isn't what happened here

Well it would if he waits until after the 18th.

Bob Juch wrote:

triviawayne wrote:

Bob Juch wrote: There is a penalty for paying your taxes late.

which isn't what happened here

Well it would if he waits until after the 18th.

Still apples and oranges

triviawayne wrote:

Bob Juch wrote:

triviawayne wrote:
which isn't what happened here

Well it would if he waits until after the 18th.

Still apples and oranges

With which do you pay your taxes?