<p>I am so furious I just have to vent plus ask for any advice anyone may have here. A few months ago I posted about my daughter getting a tax refund check for almost $3000 from the IRS that obviously in error as it was more than she had earned let alone had taxes deducted for. We did not cash the check and wrote back pointing out the error and enclosing copies of her tax returns and asking what we should do with the uncashed check. Months later she has received a note saying they had corrected her account and she now owes the amount of the check - plus interest on it! Interest on money they sent because of their mistake and that she was honest enough not to ever cash! I am just so mad right now I cannot even call them - plus I know it is going to be a complete waste of breath. If a private company tries to scam someone this way you would take them to court. </p>
<p>So who do we call to sort this out. Any ideas?</p>
<p>This happened to us, but for less money. We notified the IRS, just as you did. Then we waited. We subsequently got the exact same letter you did (wow - this must happen a lot), demanding interest. We returned the check, pointed out we did not collect interest; and that since the money did not leave the government’s possession (i.e., was never cashed), the government already had the interest. We never heard back. That was a couple of years ago. </p>
<p>hayden - thank you. That was my what initial reaction told me to do. It just seems they are so incompetent that it has me seething. Several people we know said cash the check and earn the interest but we didn’t do that because we thought that would cause problems. It honestly never crossed my mind that they would try and charge her interest when she did not cash the check. In reality they actually owe her a small amount of money in rebate - it took me a while to figure out that the amount they say she owes is the check less what they owe her plus the ‘interest’. I am normally slow to anger but this had really made me mad. I guess I will do as you suggest - once I have calmed down enough to write a letter on her behalf that does not get her arrested!!</p>
<p>swimcatsmom LOL–I have received about 10 pieces of mail and spent hours on the phone with the IRS (well, more time on hold than talking to actual people. . .) in the last couple months due to mistakes on my return–some created when they kicked out one of my dependents because someone on their end transposed two digits of a social security number, thus changing everything on my return. After I was told I didn’t owe anything, I received another letter saying I owed twice as much as the first error! Then another letter saying I owed 0. Now I finally have gotten the statement of what I actually do owe (about $500). Why can’t they just take that out of my refund, which I haven’t gotten yet? Why can’t the IRS do accounting like a normal business? Why do they enclose an envelope and remittance slip with a letter saying I owe $0?</p>
<p>I’m sure your problem will be taken care of in, say, less than an hour on the phone.
It might take a few more weeks to get written confirmation. But don’t hesitate to call–the customer service people I talked to were actually pretty nice and helpful. Give it a try</p>
<p>The problem is it is my daughters return and when I called when she got the check originally they could/would not discuss it with me. She was away for the summer so I was trying to get it sorted out for her. Plus she is just 19 and while I know she is legally an adult she is not sure how to handle this. I learned one big lesson - that question on the return where you can authorize someone else to discuss your return - if you help your kids to do their returns make sure to answer yes to that!! And the one I got back then was not at all helpful (thick as 2 short planks is the term that comes to mind). </p>
<p>Actually I have tried to call several times today and went through a whole bunch of press this and enter that before being told that they have technical difficulties and to call back. Not helping my mood at all.</p>
<p>Government agencies hate dealing with congressmen and senators. If you call or write your congressman and or senator with a cogent description of the problem and note your desire to have it fixed, it will get done.</p>
<p>Usually they write a letter to the head of the agency and it works its way to the poor schmuck who has to fix the problem. The agencies have people who spend a lot of their time answering congressional inquiries on behalf of constituents. Its much more effective than taking on the bureacracy yourself.</p>
<p>My daughter and I sound the same on the phone, so when calling about her tax problem I just tell them I am her. </p>
<p>We had the same issue with the IRS a few years ago - she owed the kiddie tax, which I dutifully calculated and paid, then they refunded that amount back to her, then later said oops! you did owe that, but I don’t recall interest charges. Good luck.</p>
<p>Just call them. You can pretend to be your daughter. I had a problem with a filing several years ago and while it took a long time to clear up, I found that the people I dealt with were very friendly and were as accommodating as they could be. The problem was one of limited technology. It is regrettable that government agencies are saddled with antiquated technological resources. Finally, a tax liaison was appointed to clear everything up - it took her just a few days to get everything wrapped up. I found that everyone really wanted to straighten things out - hopefully you encounter similar people. Be sure not to talk with them with an attitude though - be as nice and respectful as you can and I think you will be met with a similar attitude. The problem was likely created by a machine - not a person and certainly not the person you will be talking to. No need to tell them you are angry or complain about what you have done - just tell them there has been a misunderstanding and you are hoping that they can help you.</p>
<p>Just read about the English accent. Your daughter can handle it -</p>
<p>dadx - that is definitely on my list of possibilities. I have calmed down somewhat and have written a letter for her to the IRS. Believe me if it is not sorted promptly I will be contacting congressmen and senators. It is not a vast sum of money but it is the principal of the thing. Plus it looks like a major screw up as the original documents show an income more than 10 times more than her income - looks like they maybe got her mixed up with someone else. Anyway mistakes happen and I don’t get mad about that - but compounding the mistake this way - that makes me mad.</p>
<p>cartera - I was nice and polite on the phone last time and while not rude the person on the other end was not helpful at all and really did not seem to care that my daughter was sitting with nearly $3000 that did not belong to her and wouldn’t even give any advice about how to handle it. I think we will go ahead and send a letter - just so that we have a paper trail. Hopefully that will sort it out.</p>
<p>I have previously had my estimated tax applied to the wrong tax year (yes the check clearly said the right year as did the voucher) and then received a “refund” with interest for the wrong year. Then of course a bill, with interest, followed for the year it was for. These roughly were equal in terms of the interest.<br>
I agree with hayden above about returning the check with a letter. It takes a long time to straighten these things out in my experience.<br>
Do you use a paid tax preparer? Mine has generally helped me on things like this (this was not the only time things were changed by the IRS) at no additional charge.
They definitely will only talk to the taxpayer or authorized rep. Some IRS people will just hang up without even saying that they are going to do so, if it is not the taxpayer, or they think it is not. However some actually are helpful.</p>
No we do our tax returns and our kids returns ourselves - our taxes are very simple and we were both accountants in our previous lies - pre retirement for my husband and pre USA for me. My daughter was below the income limits so her return was just to get her tax refunded. What a hassle. Her first experience with the IRS is certainly not a good one. Poor kid about had a heart attack when she opened the notice demanding more than she earned last year! And she felt she was doing the right thing not cashing the check so is just shocked by the interest charge.</p>
<p>When you call the IRS, conference your daughter in. You can do all the talking and she can confirm who she is and that you can speak on her behalf. My husband and I do this all the time when he knows the issue better than I do but needs me on the phone for legal reasons.</p>
<p>Son was in India on April 15, and I will no longer complete or pay to complete his tax returns, or sign for him (he’s 23 and independent). His CPA said that since he was out of country on April 15, he automatically gets a two month extension, no special form needed. He comes home, and in the 14 day homestay, diligently learns how to do Canadian, US, and Oregon tax forms. He paper files on June 13, before the June 15th deadline and includes a note that he was out-of-country per IRS instructions. IRS dings him on the 2008 Stimulus for insufficient quarterly payment, late filing, penalty and of course interest. </p>
<p>He calls, on hold for hours for higher authorities, who say that he is right, but they will still ding him for the $2.50 interest. He relents to this, on the premise that its not worth another 2 hours for $2.50. IRS said that he should have written “out of country” boldly on the first page of 1040, rather than attaching a note on a separate paper. </p>
<p>Our country is eyeball deep in deep dept to its citizens and foreigners. Somehow, someone got to get more money from its taxpayers. No harm in trying. I expect no less from W’s administration or from future administrations of freely elected Presidents. %)</p>
If I had been a politician in my previous life then it might have been a freudian slip . But was just a typo (actually one I had spotted and thought I had corrected - I seem to constantly miss keys with this computer!)</p>
I expect no less from W’s administration or from future administrations of freely elected Presidents. 
%)</p>