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      09-29-2020, 12:54 PM   #1
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Tax Refund Question

Why ask an accountant when you can ask randos on a car forum?!

So I DO have this question out to my accountant but he's out of office for a few days so I figured I'd see if anyone here has had a similar situation and what they did.

So based on our tax return, my wife and I were supposed to get $2k~ish back. Our accountant failed to check the direct deposit box this year so we ended up getting a paper check. The check is for nearly $6k. WTF?!

I mean, cool. I like $$$. But I'm scared to cash the damn thing. It would be just like the IRS to send us too much, catch the error 3 years later, then charge us interest on the overage.

Anyone ever have this happen and what did you do?
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      09-29-2020, 01:32 PM   #2
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I would deposit the check but don't spend it in case the IRS comes back for it. I have had my tax person make mistakes either way (owe more or less) and the IRS will adjust the return and send you either a check or bill, depending...
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      09-29-2020, 01:41 PM   #3
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While you're waiting for your accountant to respond, you can go online and get a transcript of your return. You can compare that to the copy the accountant hopefully gave you. The difference should be obvious. Knowing what changed, you can then determine if the change was appropriate. Figuring out the appropriateness may be something you can do on your own or you may need to discuss with your accountant.
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      09-29-2020, 01:43 PM   #4
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I would call them and check it out. I don't trust them, these people would never make it in the private sector. Here is my recent experience.

My family members (partners) and I all got refunds this year (S Corps) due to a loss in one of the companies. My parents, sister and brother got their refunds within 2 weeks of filing but I did not. I was periodically checking with my accounting firm. They checked status on line and all they could see was it was in processing. I waited until we hit the 60 day mark and called the IRS first thing in the morning. I only had to wait 30 minutes to get someone with a pulse. I ask for status. He puts me on hold and comes back 15 minutes later and says that my refund is being held due to a refund that was sent to me in error for tax year 2017. Hmmm, OK - how is it I don't know about a receiving a refund in error? He tells me, you did know because you returned it. I thought about this for a minute and realized what he was talking about. My sister in law and I have the same name. I pay the estimated taxes on behalf of the family. The IRS applied her estimated payments to my account, even though her social was clearly shown on the check. I was issued a refund which I did not deposit. I discovered their error in looking at the payments I made. The check was sent back to them showing they applied to the wrong account. They correctly applied it to my sister in law.

Fast forward. My account is on hold since 2017 BECAUSE THEY NEVER TOOK THE HOLD OFF WHEN THEY RECEIVED THE CHECK BACK TWO YEARS AGO.
You had one job....

Don't cash that check until you get confirmation.
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Last edited by cmyx6go; 09-29-2020 at 01:53 PM..
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      09-29-2020, 02:23 PM   #5
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Quote:
Originally Posted by cmyx6go View Post
I would call them and check it out. I don't trust them, these people would never make it in the private sector. Here is my recent experience.

My family members (partners) and I all got refunds this year (S Corps) due to a loss in one of the companies. My parents, sister and brother got their refunds within 2 weeks of filing but I did not. I was periodically checking with my accounting firm. They checked status on line and all they could see was it was in processing. I waited until we hit the 60 day mark and called the IRS first thing in the morning. I only had to wait 30 minutes to get someone with a pulse. I ask for status. He puts me on hold and comes back 15 minutes later and says that my refund is being held due to a refund that was sent to me in error for tax year 2017. Hmmm, OK - how is it I don't know about a receiving a refund in error? He tells me, you did know because you returned it. I thought about this for a minute and realized what he was talking about. My sister in law and I have the same name. I pay the estimated taxes on behalf of the family. The IRS applied her estimated payments to my account, even though her social was clearly shown on the check. I was issued a refund which I did not deposit. I discovered their error in looking at the payments I made. The check was sent back to them showing they applied to the wrong account. They correctly applied it to my sister in law.

Fast forward. My account is on hold since 2017 BECAUSE THEY NEVER TOOK THE HOLD OFF WHEN THEY RECEIVED THE CHECK BACK TWO YEARS AGO.
You had one job....

Don't cash that check until you get confirmation.
Oh man, what a mess. Back in the mid 90s I successfully filed and got a refund using the wrong social security number. I fat fingered it into Turbo Tax. LOL.

Yeah these guys are hopeless. I'll see what my accountant says then check with the IRS, before even cashing the check.
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      09-29-2020, 02:24 PM   #6
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Quote:
Originally Posted by kscarrol View Post
I would deposit the check but don't spend it in case the IRS comes back for it. I have had my tax person make mistakes either way (owe more or less) and the IRS will adjust the return and send you either a check or bill, depending...
Yeah, good point. I've had that happen as well but it was like a $20 change.

Quote:
Originally Posted by charlie fairmont View Post
While you're waiting for your accountant to respond, you can go online and get a transcript of your return. You can compare that to the copy the accountant hopefully gave you. The difference should be obvious. Knowing what changed, you can then determine if the change was appropriate. Figuring out the appropriateness may be something you can do on your own or you may need to discuss with your accountant.
Excellent tip, thanks! I'll do just that....
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      09-29-2020, 03:00 PM   #7
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Do they not send you a summary with the check from the IRS?

Up here in the frozen North, the CRS looks at your return and compares to their numbers. If there is any change for or against you, they put it in the summary that the check comes attached to.
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      09-29-2020, 03:08 PM   #8
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As said above I would cash the check, not spend it and ask the accountant to figure it out. Why have one if you are going to figure out things yourself?
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      09-29-2020, 03:26 PM   #9
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Quote:
Originally Posted by ToddBlack88 View Post
Do they not send you a summary with the check from the IRS?

Up here in the frozen North, the CRS looks at your return and compares to their numbers. If there is any change for or against you, they put it in the summary that the check comes attached to.
Nope, no summary. Just a check. And yes, the check and envelope look totally legit. Not sure what sort of scam that could be, sending me a fake check, but the thought did cross my mind.

Quote:
Originally Posted by David70 View Post
As said above I would cash the check, not spend it and ask the accountant to figure it out. Why have one if you are going to figure out things yourself?
Oh for sure. I'm just curious more than anything. I'm impatient and want answers faster than most people can provide so i end up doing a lot of leg work myself that's rather unnecessary if I'd just chill out and let people do their jobs. ask my wife and therapist; they will tell you all about it.
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      09-29-2020, 04:12 PM   #10
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Quote:
Originally Posted by DETRoadster View Post
Nope, no summary. Just a check. And yes, the check and envelope look totally legit. Not sure what sort of scam that could be, sending me a fake check, but the thought did cross my mind.



Oh for sure. I'm just curious more than anything. I'm impatient and want answers faster than most people can provide so i end up doing a lot of leg work myself that's rather unnecessary if I'd just chill out and let people do their jobs. ask my wife and therapist; they will tell you all about it.
After you go to Tax Jail can I have your stuff?

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      09-29-2020, 04:19 PM   #11
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Agree with other about cashing and hanging onto cash until sorted.

Also, if your accountant made a mistake that caused this, consider finding another one next year. Everyone makes mistakes and it’s good this is (apparently) in your favor but next time it might not be. It would be pretty unpleasant to get an unexpected bill.
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      09-29-2020, 04:57 PM   #12
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Per the IRS website if there's a difference in your return and your refund, they will send you a letter detailing why. OK, you cant send that letter BEFORE or WITH the check? Come on, guys!
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      09-29-2020, 05:03 PM   #13
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Most likely IRS adjusted your return - has happened to me a few times when I was still doing my own taxes. I'd find a new accountant (and quiz them on your tax return to see if they spot the error).
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      09-29-2020, 05:10 PM   #14
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Originally Posted by Noneya View Post
Most likely IRS adjusted your return - has happened to me a few times when I was still doing my own taxes. I'd find a new accountant (and quiz them on your tax return to see if they spot the error).
Not quite that simple, I'm afraid. We have our 1040, an S corp, an LLC, and a partnership. There's inventory depletions and capital equipment. The shit is way above my head now. Our accountant is absolutely awesome to work with. I'll be shocked if there was an error of this magnitude on his side. My guess is the IRS screwed something up.
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      09-29-2020, 05:17 PM   #15
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Quote:
Originally Posted by DETRoadster View Post
Per the IRS website if there's a difference in your return and your refund, they will send you a letter detailing why. OK, you cant send that letter BEFORE or WITH the check? Come on, guys!
Did the return have the checkbox marked that it was prepared by a professional? If so, maybe the explanation was sent to your accountant?????
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      09-29-2020, 09:24 PM   #16
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Don’t cash the check until you know it is yours. An uncashed check can just be returned.
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      09-29-2020, 11:26 PM   #17
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I filed my taxes and got my modest return. Several months later I got a check from the IRS for $3.35. I thought maybe it was for the hour of work I did back in the 1980s.
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      09-29-2020, 11:39 PM   #18
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Here is a little advice.

Do your own taxes. I doubt your situation is complex enough to need an accountant and it if is, you would have an accountant that didn’t overlook details like this.
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      09-30-2020, 12:09 AM   #19
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If the IRS pays you too much and realizes it later, they will bill you and charge you interest. Currently, interest is set at 5% annual rate. If you don't need the funds, just hold the check until you have more clarity.

The IRS is actually very good at making refund adjustments in the taxpayer's favor. A very common adjustment is when there is a difference in total estimated tax payments actually made versus what was reported as being paid on your tax return.

Special note this year, many refund checks have been arriving well ahead of adjustment notices. The notice is usually 1-2 weeks behind the check.

If you are impatient, the advice to get a transcript is good. Go to irs.gov and download your Record of Account Transcript. Compare it to the tax return copy your accountant provided and look for any changes indicated on the transcript.
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      09-30-2020, 07:29 AM   #20
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Quote:
Originally Posted by DETRoadster View Post
Why ask an accountant when you can ask randos on a car forum?!

So I DO have this question out to my accountant but he's out of office for a few days so I figured I'd see if anyone here has had a similar situation and what they did.

So based on our tax return, my wife and I were supposed to get $2k~ish back. Our accountant failed to check the direct deposit box this year so we ended up getting a paper check. The check is for nearly $6k. WTF?!

I mean, cool. I like $$$. But I'm scared to cash the damn thing. It would be just like the IRS to send us too much, catch the error 3 years later, then charge us interest on the overage.

Anyone ever have this happen and what did you do?
Quote:
Originally Posted by kscarrol View Post
I would deposit the check but don't spend it in case the IRS comes back for it. I have had my tax person make mistakes either way (owe more or less) and the IRS will adjust the return and send you either a check or bill, depending...
^This.

Have you reviewed the tax return documents? If you can see how the calculation is coming up with the refund amount and it appears reasonable and prudent, and the tax accountant confirms it's accuracy, then you are probably good to go.

If the amount owed back to you on the tax forms is not the same as the check received, then you probably need to have the acct reach out to the IRS and resolve the issue.

Source: I am a licensed CPA.

IRS Circular 230 Disclosure:

Unless the above message expressly provides that the statements contained therein and in any attachments thereto (“the statements”) are intended to constitute written tax advice, the sender intends by the above statements to communicate general information for discussion purposes only, and you should not, therefore, interpret the statements to be written tax advice or rely on the statements for any purpose. The sender will conclude that you have understood and acknowledged this important cautionary notice unless you communicate to the sender any questions you may have in a direct electronic reply to this message.
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      09-30-2020, 08:28 AM   #21
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Quote:
Originally Posted by BayMoWe335 View Post
Here is a little advice.

Do your own taxes. I doubt your situation is complex enough to need an accountant and it if is, you would have an accountant that didn’t overlook details like this.
Often, sometimes one does not realize / appreciate they are in an area of complexity and assumes it to be simple instead and something they can handle on our own. Which then gets them into trouble IF they are flagged (some people never get caught) and leads them to hiring an accountant.

Provided you are confident enough to take the risk, then sure, the above advice can be followed. It also keeps me in business to a degree, so I don't mind. Otherwise, I wouldn't follow this advice.

Source: I'm an accountant and I see people miss benefits all the time when they come to me provided their return is not basic. Usually with self employed / corps / or people claiming employment related expenses.
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      09-30-2020, 09:08 AM   #22
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Originally Posted by MKSixer View Post
After you go to Tax Jail can I have your stuff?

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You take the STUFF, Joe and I will split the refund check!!!!

Wait, it's in US dollar, not some funky Canadia currency, right? I mean, IRS
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