*&%$##@ stimulus pmt

[zeke]

my client brings in letter dated 5/15 from IRS saying that she failed to remit $151.00 with her 2007 return. I know - I should have held her hand & made out her check & filled out her check register etc. Lazy me. Any way, She is not unhappy - just writes the ck. THEN, receives stimulus pmt for $449.00. IRS withheld $151.00!! Now she is overpaid by $151.00 & wants her refund! woe is me.... :mad:

[joelgilb]

my client brings in letter dated 5/15 from IRS saying that she failed to remit $151.00 with her 2007 return. I know - I should have held her hand & made out her check & filled out her check register etc. Lazy me. Any way, She is not unhappy - just writes the ck. THEN, receives stimulus pmt for $449.00. IRS withheld $151.00!! Now she is overpaid by $151.00 & wants her refund! woe is me....

I'm sure she thinks you should pay her directly. Like its your fault she doesn't know how to read instructions or write a check

[RitaB]

my client brings in letter dated 5/15 from IRS saying that she failed to remit $151.00 with her 2007 return. I know - I should have held her hand & made out her check & filled out her check register etc. Lazy me. Any way, She is not unhappy - just writes the ck. THEN, receives stimulus pmt for $449.00. IRS withheld $151.00!! Now she is overpaid by $151.00 & wants her refund! woe is me....

It it weren't such a pain, some of our experiences with this would be funny! I had a client sooo distraught cause IRS took estimated tax penalty she owed out of her stimulus payment. She never pays quarterly, always has to pay penalties, and only now because of the stimulus payment does this bother her...

[JohnH]

Now that I think about it, the IRS reducing stimulus payments for things like unpaid past liabilities and est tax penalties offers an opportunity. This is a chance to tell clients "This is a conversation we should have been having last year. Nothing can be done about it now." I use that line quite often anyhow, but the adjustment to the stimulus payment gets right in their face and ties a real number to the discussion.

[joanmcq]

So now she will wait another few months until they refund her the $151. she'll have a few bucks in interest added to make up for the int & pen she paid earlier. *sob!* (Not!)

[GeneInAlabama]

How can we buy wide screen TVs made in China or wherever, if they keep taking our stimulus payment for back taxes and penalties?

[JohnH]

We should have already bought the wide screen TV's with the tax money that was diverted in the first place.

Sort of like getting the stimulus payment before anybody else.

The penalties & interest are just the cost of getting the stimulus payment in advance.

[bstaxes]

So now she will wait another few months until they refund her the $151. she'll have a few bucks in interest added to make up for the int & pen she paid earlier. *sob!* (Not!)

The IRS will send a 1099 for the interest they sent her. Can't get a break at all. The IRS giveth and taketh away.

[JohnH]

I've had a few clients complain about getting 1099's for interest on tax overpayments from time to time. I always tell them the same thing - I can work it out so they don't have to pay any tax on it. Just give me the interest and I'll pay the tax on it . Nobody has ever taken me up on the offer.