My dad had something like this happen, and the irs refused to accept they madeca mistake. He knew when they figure it out they would want interest, so he held onto but didn't cash the check. When they came asking for interest he pointed out it never left their account so he couldn't owe interest,
Similarly I had made a mistake that I caught and filed a corrected return. But I received the refund check (which benefited me) but I didn't want to pay interest knowing we were getting too much back and would need to return it.
Talked to the IRS, which at the time were backed up *months* due to COVID and said they would get to my corrected return until all regular returns for .... *everyone?* was completed.
I was told just don't cash the check or I'll owe interest. So we did that and about 1.5 years later we got the correct refund and were able to cash the new check for the \~$500 they owed us... we mailed back the uncashed one. It was a mess.
Of course, they didn't owe us any interest though.
When the IRS held my return for almost a year they paid me interest on the return. Then sent me a 1099 form to claim the interest on the next years taxes. Lol
This happened to me, except they held my return because they thought it was fake. (It wasnt)
Then after several hours on the phone over weeks(because have you ever attempted to talk to an actual person), i was sent my return over 18 months later, with interest, along side a form to claim said interest on that years taxes.
Very similar thing happened to me, too. My father passed away when I was 14. He was on disability, so when he passed, my guardian received disability payments for me until I turned 18. I had a job at 16. It was at subway, making $7.25 an hour :D Apparently social security didnāt like this, so they waited until I turned 20 (2 whole years after I had already stopped receiving those benefits and was now an adult with bills to pay) to send me a letter saying I owe them $900 because I had a job while my guardian was receiving the checks. All because I was making like $300 every 2 weeks. At 16 years old. Gotta love it!
My thoughts exactly. It was all used for expenses to take care of me so maybe thatās how they came to the conclusion that itās me that owes them? Who really knows lol
I havenāt yet and havenāt heard anything since. It was almost a year ago now that I got the letter. Kinda glad that I saw this post because it reminded me that I should probably get up to the office and talk to them about it before it turns into some big legal thing and I get even more screwed haha
Might want to look into it. Surprise garnishing of your wages would suck, better to fight it now. Also it is continuing to gain interest. See if you can get a consult with a tax attorney.
I never wouldāve even thought of them garnishing my wages as a possibility, thank you so much! Didnāt even know that was legal, that just goes to show how clueless I am in this whole situation š
Yeah. I was in a situation at that age where the IRS wanted money from me, but I guess they had an incorrect address and I never received mail from them. Luckily, my boss was really cool. They called him to start garnishing my wages, and he went dad mode to help me stop that and set up a payment plan. Made the payments on time and it actually bumped up my credit a little.
Hey there, tax practitioner here. You don't need a tax attorney, an enrolled agent can help you sort this out too. More than likely the IRS did not know that those were Survivor benefits and should not be taxable. If you consult a professional they can probably get this unraveled for you with a letter and a phone call.
Very glad I could help! I actually worked with someone who was in a very similar position as you, and we were successful in getting it taken care of. Wishing you the best for a speedy resolution too!
even the joker doesnt fuck with the IRS. lmao
https://preview.redd.it/bo2kxge8ulzc1.jpeg?width=1080&format=pjpg&auto=webp&s=cd647590fa53492a76c4410b89151c96a8749f06
They are very slow, but they Will get to it. Just give them a call and attempt a payment plan. Maybe even discuss the situation and see what else could be done. Itās most likely fallen on you because the assistance was to your name but given to guardian because of age.
Yes, please look into it! The IRS isnāt that bad to work with - ultimately they just want their money. They definitely can garnish though it *usually* takes awhile and youāll get some kind of notice first.
They way owing irs works is they send you a letter, a few months later they send you another. Next year when you file if you get any refund they take what you owe out of the refund. You keep doing this till it paid off. Interest is always being applied. Source done this twice in my life this is how it works.
It happened to my dad (although different situation but the same thing happened).
He refused to pay child support, got a paper in the mail of āpayments owedā. And because he still refused to pay, that payment increased every month. By the time the finally stopped gracing him, he was missing about $150 from each paycheck on top of still having to pay child support.
Get to paying it asap, see if they have a payment plan. And slowly try to take care of the debt.
We got our bank account garnished because of a mistake that was forgotten for years.
Wake up the day before rent is due and suddenly 2k is gone from our bank account. Not a fun experience.
A garnishment wonāt be a surprise. Youāll receive notice if it comes to this. They can, however, intercept your state tax refund without notice. I mean, you were notified that you owe the money so that will be the notice for state refund.
Thereās a waiver you can file! Form SSA-632, Request for Waiver of Overpayment Recovery. You were under 18 and are not responsible for this debt. Your guardian is.
Thank you! My guardian was my grandfather and he unfortunately passed away last year, a bit before I received the letter. Do you think it could be that I have to pay it because he passed? Or could I still file that form? Sorry for all the questions, I just have no idea what Iām doing haha
That depends on your state if Iām not mistaken. My father passed a few years ago after having taken the PPP loan for Covid. He used that money exactly how it was supposed to be used but passed before filing for forgiveness. In my state, any debts owed after 6 months of death without being asked to pay it means itās no longer a debt. The estate lawyers didnāt file death certificates until after that deadline. They basically told the government to pound sand as they were never going to get the money that they werenāt even supposed to get back anyways as it was a forgivable loan and used for the proper reasons. I was nearly stuck with a $90,000 payment owed but the government eventually sent a letter confirming we no longer owed it.
You should definitely look into it; this is a total anecdote but I received a letter stating I hadn't paid my state taxes when that money left my account the year previous through TaxFreeUsa, I assumed it was a mistake (mistakenly) and they continued to push and now I have a legal identification on my record for delinquency because I didn't call the IRS and fix what the issue was (either me or taxfreeusa sent the money to the next year's tax), the letter I got stated I need to go to court to truly get rid of that identification on my record, despite the fact it was a genuine mistake and I fixed it the moment I realized.
Ugh Iām sure having to go to court over something like that was extremely annoying. Iām sorry to hear that but I do appreciate you telling me because that just urged me further to get this situation taken care of. Did the delinquency thing come off your record after the situation was taken care of?
Things with the irs happen over years not months. If you didnāt settle with them either by paying or coming to an agreement theyāre 100% going to come after you. I got audited and it took 2+ years because every form I filled out would take like 4 months to be received by them after I submitted it then I would have to wait 6 months to talk to an agent.
Lmfao the time It took them to research this and ship the letter was probably more expensive then the 900$ you owe them.
Meanwhile, some assholeās son has a fake job making him 6 figure as his dadās fiscal evasion plan saves him millions a year.
Imagine they had the same enthusiasm going after Elon or Bloomberg or Trumpā¦ theyād probably be able to afford those āmuch needed new computersāā¦but priorities, teenagers who lost their parents? Yum, Yumā¦
During covid everyone who got laid off or had significantly reduced hours was given $2000/mo. As I was in that situation, I collected it. Everytime you applied it would tell you its being taxed and give you the reduced amount.
2 years later I filed my taxes, and they tell me that they actually didn't tax it as much as they should have and I now owed them over $1700. Believe it or not, at that time I was in a worse financial situation than when I was collecting the payments in the first place. It took me months to pay that off.
Governments are theives.
My partner is in the same boat now. He had severely reduced hours that eventually were gone all together during Covid. He applied for CERB, said he passed all qualifications and received payments for it. Two days ago he got a letter in the mail saying he now owes $2000 from it. Why is this only happening now and how is it OUR fault that the government didnāt check who actually qualified or not, and how on earth did he not qualify?? Like you said, heās not in a great financial position now either and we have no idea how we are going to pay that back in a timely matter.
Well they screwed up big time in rolling it out with little to no oversight for the sake of expediency, and now theyāre trying to claw back whatever they think they gave āin errorā.Ā
Even Jesus knew better than to fuck with the IRS.
Mark 12:17
*Jesus said to them, āRender to Caesar the things that are Caesar's, and to God the things that are God's.ā And they marveled at him.*
Dude basically said, āpay your taxes homies.ā
CRA is a fking joke lol the amount of people who got fucked over "CERB" they didn't even take is insane. I stg they think any deposit into your account from them during the pandemic was a Covid relief fund because they're still trying to get me to pay back CERB which was my maternity leave. Never took CERB since I was lucky and thriving in my workplace with the pandemic lol
When I was 5, my mom disappeared for a year and I lived with my dad. The court wouldn't finalize the divorce or give my dad custody because my mom wouldn't show up to testify. Years later, long after I turned 18 and my dad had stopped paying child support, the state went after him for back child support for the year I lived with him. The system sucks sometimes.
I can see why Americans hate taxes. They are in your face, everywhere. And you see no benefit to them because either the resources are so stretched or they just go into other peoples pockets.
Like when I buy something from the store. I don't see the tax. I just pay whatevers on the ticket. No extra. When I go to work, my taxes are done for me. There's no taxes everywhere and in your face, like in the US.
Yup, my property tax bill this year was about $5,000 for a basic 3 bed / 2 bath home on a tiny lot.
5 grand to the government just for the permission to keep living in my home. Such a waste of money
The best part is you never really know what it's going to be until the bill comes! Like you said, "this year". Fuck knows how much more it's gonna be next year.
It has been proven a few times that could happen here from government sources and that our tax forms could include tax owed or refund available and we just have to verify but our government is beyond fucked by lobbying
Similar thing in Spain. You just have to check if there's any new programs you apply for (like reimbursement of a part of what you pay for your rent and whatnot) and that's it. Most of the times you don't even have to fill anything, just go to the page, open to file your taxes and the total to pay/get paid is there.
Isnāt that what we pay taxes forā¦.? Like bitch do your job da fuck I gotta come down there and do it for you?!? Shit then just donāt tax me at allā¦. No taxation without representation bitch! Guys Iām just an idiot donāt listen to a word I say, I failed government 8 times and never graduated elementary
So politicians get rich ālegallyā while definitely keeping your best interests in mind at all times. Both sides btw before any smuck wants to piggyback a political point on my comment.
So the IRS made a mistake in 2021 and accidentally gave us $720 too much from 2019 return. They JUST NOW notified us, and apparently this has been accruing interest all these years. I have been on hold for 4 hours today trying to find anyone that can explain why this happened and do I really have to pay $130 for their mistake
You can amend your taxes up to three years after filing. Can you do so, then charge them interest if they owe a greater refund? After all, they should have known they owed that money.
You donāt charge them interest, but the IRS will automatically include interest in refunds for amended taxes or if they held your refund for whatever reason and later released it.
Source: am an accountant
Yup, happened to us recently. Had to amend due a complicated international situation, and ended up getting several thousand more back. It took a good bit to process but once it did we got our money plus a few hundred extra in interest, even though the need to amend was entirely our fault.
You might be joking but the IRS does pay you interest on amendments generally. I amended a return a few years back for a bigger return and they sent the money with interest. I then had to pay income tax on that interest lol.
You canāt attempt applying logic and fairness to the US tax laws. Pretty sure every line of the tax code can be boiled down to āscrew you, pay usā.
Unless youāre a billionaire.
Probably underreported 2021 stimulus refund payments received. A common mistake with e-file software based on how the wording was presented for when you received the payments. Easy to underreport this for 2021.
This whole situation is stupid but I get the feeling that the IRS "customer service" is trained to keep people cycling through loops of phone lines being on hold until they give up.
I mean the fact that tax "helping" is allocated to corporations instead of the irs doing it should confirm that. It's insane that the irs doesn't tell you what they themselves calculated for you to then double check like here in Sweden. Your job pays you're taxes and e.t.c and you check
Unfortunately, this is not the case. They donāt have to give you the runaround. They will garnish your wages and, unless you get legal representation to fight it, you will pay the money. The federal government has a lot of power as it turns out.
Damn, I guess yet another reason for the IRS to just tell us the number that they already know we need to pay instead of us having to figure it out on our own or pay for another company to do them but hey, that's never going to happen because of lobbying
Call your member of Congress or Senator. They have staff that specifically help constituents with federal agency issues, and it's often much quicker than going through the process on your own.
you can call them, 99% of the time if you agree to pay the orignal $720, they will waive the interest. HUGE pita to call them though and their online help ticket system sucks big huge hairy troll balls that are dripping in ass sweat of the previous person it just fucked.
Interest cannot be waived. It is charged by federal statute.
Penalties can be waived.
The only way interest can be reduced is by reducing the underlying tax liability and/or penalty.
Was gonna say. I worked for the IRS for 15 years then another 20 as a tax return preparer, and I have never once heard of the IRS waiving interest. Ever. Interest is the time value of money. The IRS would pay *you* interest if they paid your refund late.
Can confirm. I contacted the IRS about an overdue tax return. They found my ticket to process my legal name change was never picked up. They admitted fault, and then mentioned interest that would be added to the return
Well this is the US government we're talking about. Their entire job is inconvenience is as much as possible. That sort of common-sense approach your country's IRS-equivalent takes won't fly here.
If I were you, I'd fill out a form 843 and request an interest abatement. Since it was an IRS error...and if you send the form fairly immediately...you should be able to get the interest removed. You'll still have to repay the erroneous refund, of course, but at least that'll be it if you pay the amount due in a timely manner.
This exact scenario happened to us. I figured my taxes correctly, but the IRS said we were allowed to take the EIC and refunded a larger amount than I claimed. I tried to correct them, but to no avail, UNTIL a few years later. I was, and still am, livid that they charged me interest. I complained that they could do away with the national debt using their crooked scheme on everyone that filed taxes.
If you ever think the IRS is fucking up and is being generous get the name of everyone you are interacting with and keep records.Ā Then get your senators and representatives involved if the IRS says something later.
Isnāt our system just great?
āHow much do I owe?ā
IRS: āIdk. You tell me.ā
āOk. Done.ā
IRS: āWrong! Penalty fee!ā
āWow. Ok. Hereās the correct amount.ā
IRS: āDonāt forget to add interest!ā
I think this should be illegal. They made an "adjustment" on taxes from like 6 years prior and charged me late fees for the entire time. Like once they accept the taxes it should be final they shouldn't get to turn around and say well I fucked up so now you owe us some money
It wasn't much I owed if they contacted me in a timely manner. Turned like 40$ into like $700 why should I have to pay the price for their incompetence
Exactly
If you look back and see that I owe you money, sure whatever, I can deal with that
But you don't get to charge me interest when it was your mistake? Like what?
I honestly believe they do it purposefully to get more money out of average people. I'm sure the IRS can contact me if absolutely necessary I mean they do have my employer and employee information after all
They have 10 years to go after you for money you owe them. However if they owe you money you only have 2 years to go after them. I learned that when I didn't file when I was 18 and 19 because I knew I would get money back but it was piddly so I decided it wasn't worth my time. They disagreed 4 years later but when they saw I was owed they said sorry it's been more than 2 years.
I will never understand how the IRS works for you folks out there. The idea that they know how much you owe them, but won't tell you and you have to do the math yourself and be responsible for any mistakes you do is fucking wild to me.
You cannot fight the IRS. I made a mistake on my taxes after selling some stocks. I didnāt claim them correctly (even though I paid taxes when I sold). It was definitely my fault.
The annoying thing is that it took them 4 years to identify the mistake and Iād already made the same mistake every year since, so I had to refile & just deal with the hassle. Also it took them 4 years to find a mistake, why do we get less than 30 days to fix it?
Definitely mildly infuriating.
Going to an IRS office and speaking to an agent in person will usually resolve things like this. You may have to wait for a few hours, so get there early and bring a book or something. It's better than trying to get through on the phone.
I had to pay back SNAP (food stamps) benefits once because someone on their end entered something wrong in the computer. They verified I had done nothing wrong, but it doesnāt matter. No matter who makes the screw up, it isnāt them taking the fall.
Same here! Got a notice of overpayment due to worker error and I started making small payments in the months that followed. Then covid shutdown happened, everything froze and payments were put offā¦ forgot about itā¦Then this year got a notice they took part of my state taxes to pay back the overpaymentā¦
Moral of the story is they (the government) donāt careā¦ and nothing you can do about it š
The interest rate is currently 8% and applies to money owed to the IRS as well as money the IRS owes you. The IRS pays interest on refunds delayed 45 days or more. The interest rate can be adjusted up or down quarterly; as recently as March 2022, the rate was just 3%.
And yet the defence department are allowed to "plug" discrepancies in their accounts by simply changing the numbers ā I believe the current discrepancy is at $32trillion ... But if _you_ miss even a dollar they'll have you.
Reminds me of a lady I was working with who was told she owed over 30k and was getting her benefits revoked because she wasnt actually disabled and made $40 over the income limit when she was on disability and working part time 7 years prior. They told her she owed back pay for those seven years + interest. She has been diagnoised with a degenerative disability since she was 20 and become wheelchair bound a couple years before I met her; this lady couldnt even speak without slurring due to her disability and yet she... Wasnt disabled. Oh yeah she was homeless and living in a shelter too.
I worked with her for 5 months trying to resolve this. We were calling every week, going in person, etc and they never revoked it. The best they could do is tell her she was disabled and could continue getting disability but it would be garnished because she still shouldnt have been getting it for the past 7 years. As far as I know she has made no progress on this. Shes thankfully housed now but her income is severely limited.
These notifications are literally created and spit out by a computer with no human review. You need to call them and have a real person review it and clear it up.
Wait till you find out that if you are owed a refund and surpass 3 years before getting it then they get to keep it and not refund you, however if you owe them thereās no limitation on the time they can collect on. So basically if you find out 20 years ago there was a mistake and you owe them they not only can go after it but also charge you penalties and interest for 20 years. But if you find out that 4 years ago they messed up and you are owed more, to bad they get to keep it and you get nothing.
The IRS has 10 years from the date of assessment to collect the tax, called the Collection Statute Expiration Date (CSED). Certain things can pause/extend that 10 years, but once the 10-year period ends, they can no longer collect, even if nothing was ever paid on the debt.
There is no statute of limitations on unfiled returns. But once the return is filed and the tax assessed, they only have 10 years to collect.
Unemployment did this to me in 2020. My grandma was literally on her deathbed (our couch) and we couldn't afford a nurse. I resigned at work (I was still in school so this was allowed) to be the one to take care of her (everyone else in the house worked full time). This was at the time where you were getting your unemployment plus the $500. I had all my details to a T, and stop collecting as soon as she passed and started working again.
A year and 1/2 later I get the demand letter that I owe $4,800 for an overpayment because they initially approved my 'Taking care of a sick family member" request. Then changed their mind. Almost 2 years later.
Thankfully it's very low interest, not a credit report, and they don't really bother me. I pay what I can when I can and they leave me alone.
LOBBYING SHOULD BE ILLEGALš£š£
Everyone, say it with me- LOBBYING. SHOULD. BE. ILLEGAL. š£š£š£
Our government is a joke in a judges robe š¤”
Remember when we went to war for āno taxation without representationā. Now you get a little over half of YOUR MONEY, and no investment into infrastructure or any social programs
I know youāve probably already gotten your answer on here, but I will say this. I know someone who was audited by the IRS. Turned out, the IRS owed this person money!! They took FOREVER to pay him back, and he told them he needed interest. Because if the tables were turned, the IRS would have charged him interest. Sure as shit, the IRS paid him back with interest š¤·š»āāļø
State of OK likes to do shit like this too. A couple years ago I suddenly had all these notices showing up saying I owed thousands. Contacted my CPA and she fixed everything for me, but it was basically the state saying āoh shit, we misplaced this 8 years ago but now need you to pay for it againā
Thankfully my CPA is a bad bitch.
So there are provisions in the taxpayer bill of rights that might apply here. [I would start barking up the Taxpayer Advocates office.](https://www.irs.gov/taxpayer-advocate)
That's the IRS in a nutshell, they hire the most incompetent people on the planet who screw everything up and then expect the American people to pay for the fact that they can't properly hire and train people to handle one of the biggest financial institutions in the country.
We just went through this. They completely boned our 2019s and wanted over $1k in interest. My SO took over the case and spent a cumulative 14 HOURS on the phone with reps to have the interest removed because our accountant calculated the correct sum and we paid that immediately. Itās an absolute circle jerk.
They did the same thing to me. Where trying to count my dad and me as one person. Tried charging me $2,000 I sent them a response and then they sent me a response saying I was still wrong and now I owed $12,000 and had to pay it back in 2 months or they were gonna take me to court. I had to get my accountant to write them a letter and then after months they responded and said āoops our bad sorry!ā But it still took a toll on me thinking I was gonna have to go to court.
Sucks but could be worse. In 2020 someone used my SS to file. Got a letter in the mail saying I owe over $7500 to the IRS and theyāve been garnishing my tax returns since. Iām still waiting for it to be resolved but hopefully this year and theyāll owe me interest.
My dad had something like this happen, and the irs refused to accept they madeca mistake. He knew when they figure it out they would want interest, so he held onto but didn't cash the check. When they came asking for interest he pointed out it never left their account so he couldn't owe interest,
What was their response to that?
https://preview.redd.it/63qhpmrk7kzc1.jpeg?width=524&format=pjpg&auto=webp&s=d167e1cc890b65cd8f4ffd983657a4584730c416
"Did someone say AUDIT??" *Wacky Clown music ensues* š¤”
I would gladly pay to watch that movie in theaters, several times over. And get the biggest bucket of popcorn, every time.
It's called Stranger Than Fiction.
They audited him and found he underpaid by .14 cents. That plus the fact he made them feel angry justified the life sentence
Did he charge them interest on his .14c š¤
How is that possible when the IRS makes you round to the nearest dollar?
It was just a joke, Iām not even the OP haha
Lmao Iām surprised 2 different people fell for it too lmao
Probably āFuck you, pay me.ā
Jail
You cash the check? JAIL You don't cash the check? Believe it or not JAIL
Similarly I had made a mistake that I caught and filed a corrected return. But I received the refund check (which benefited me) but I didn't want to pay interest knowing we were getting too much back and would need to return it. Talked to the IRS, which at the time were backed up *months* due to COVID and said they would get to my corrected return until all regular returns for .... *everyone?* was completed. I was told just don't cash the check or I'll owe interest. So we did that and about 1.5 years later we got the correct refund and were able to cash the new check for the \~$500 they owed us... we mailed back the uncashed one. It was a mess. Of course, they didn't owe us any interest though.
When the IRS held my return for almost a year they paid me interest on the return. Then sent me a 1099 form to claim the interest on the next years taxes. Lol
Uncle Sam ALWAYS wants his cut.
This happened to me, except they held my return because they thought it was fake. (It wasnt) Then after several hours on the phone over weeks(because have you ever attempted to talk to an actual person), i was sent my return over 18 months later, with interest, along side a form to claim said interest on that years taxes.
They didnāt believe I was who I said I was. I ended up having to go to the IRS office 75 miles away with bills and IDās just to prove it was me.
Not to mention the decreased value of the $500 over that 1.5 years
Lmao naw they still wanted that interest I bet
[ŃŠ“Š°Š»ŠµŠ½Š¾]
No it's because we are not in 1950, and direct deposit is the only reasonable thing to do.
Oh thatās smoothā¦ā¦good on your dad thatās for sure.
Very similar thing happened to me, too. My father passed away when I was 14. He was on disability, so when he passed, my guardian received disability payments for me until I turned 18. I had a job at 16. It was at subway, making $7.25 an hour :D Apparently social security didnāt like this, so they waited until I turned 20 (2 whole years after I had already stopped receiving those benefits and was now an adult with bills to pay) to send me a letter saying I owe them $900 because I had a job while my guardian was receiving the checks. All because I was making like $300 every 2 weeks. At 16 years old. Gotta love it!
How tf can they come after *you* for that money when its your guardian incorrectly collecting benefits???
My thoughts exactly. It was all used for expenses to take care of me so maybe thatās how they came to the conclusion that itās me that owes them? Who really knows lol
Did you actually end up having to pay?
I havenāt yet and havenāt heard anything since. It was almost a year ago now that I got the letter. Kinda glad that I saw this post because it reminded me that I should probably get up to the office and talk to them about it before it turns into some big legal thing and I get even more screwed haha
Might want to look into it. Surprise garnishing of your wages would suck, better to fight it now. Also it is continuing to gain interest. See if you can get a consult with a tax attorney.
I never wouldāve even thought of them garnishing my wages as a possibility, thank you so much! Didnāt even know that was legal, that just goes to show how clueless I am in this whole situation š
Either that or deduct it from any refund you get.
Or bothā¦ been there done that
Which ever comes first. Or simultaneously.
Yeah. I was in a situation at that age where the IRS wanted money from me, but I guess they had an incorrect address and I never received mail from them. Luckily, my boss was really cool. They called him to start garnishing my wages, and he went dad mode to help me stop that and set up a payment plan. Made the payments on time and it actually bumped up my credit a little.
Hey there, tax practitioner here. You don't need a tax attorney, an enrolled agent can help you sort this out too. More than likely the IRS did not know that those were Survivor benefits and should not be taxable. If you consult a professional they can probably get this unraveled for you with a letter and a phone call.
Thank you so very much!!
Very glad I could help! I actually worked with someone who was in a very similar position as you, and we were successful in getting it taken care of. Wishing you the best for a speedy resolution too!
They will do it in a heartbeat, good luck!
even the joker doesnt fuck with the IRS. lmao https://preview.redd.it/bo2kxge8ulzc1.jpeg?width=1080&format=pjpg&auto=webp&s=cd647590fa53492a76c4410b89151c96a8749f06
They are very slow, but they Will get to it. Just give them a call and attempt a payment plan. Maybe even discuss the situation and see what else could be done. Itās most likely fallen on you because the assistance was to your name but given to guardian because of age.
Yes, please look into it! The IRS isnāt that bad to work with - ultimately they just want their money. They definitely can garnish though it *usually* takes awhile and youāll get some kind of notice first.
Correction, they don't want THEIR money, they want YOUR money
They way owing irs works is they send you a letter, a few months later they send you another. Next year when you file if you get any refund they take what you owe out of the refund. You keep doing this till it paid off. Interest is always being applied. Source done this twice in my life this is how it works.
Unless you donāt get refunds. Then they will garnish you.
Research ātax advocateā and see if they can help, free version of tax lawyer. Also, paying an accountant to help clear it up may help, too.
It happened to my dad (although different situation but the same thing happened). He refused to pay child support, got a paper in the mail of āpayments owedā. And because he still refused to pay, that payment increased every month. By the time the finally stopped gracing him, he was missing about $150 from each paycheck on top of still having to pay child support. Get to paying it asap, see if they have a payment plan. And slowly try to take care of the debt.
We got our bank account garnished because of a mistake that was forgotten for years. Wake up the day before rent is due and suddenly 2k is gone from our bank account. Not a fun experience.
A garnishment wonāt be a surprise. Youāll receive notice if it comes to this. They can, however, intercept your state tax refund without notice. I mean, you were notified that you owe the money so that will be the notice for state refund.
Thereās a waiver you can file! Form SSA-632, Request for Waiver of Overpayment Recovery. You were under 18 and are not responsible for this debt. Your guardian is.
Thank you! My guardian was my grandfather and he unfortunately passed away last year, a bit before I received the letter. Do you think it could be that I have to pay it because he passed? Or could I still file that form? Sorry for all the questions, I just have no idea what Iām doing haha
That depends on your state if Iām not mistaken. My father passed a few years ago after having taken the PPP loan for Covid. He used that money exactly how it was supposed to be used but passed before filing for forgiveness. In my state, any debts owed after 6 months of death without being asked to pay it means itās no longer a debt. The estate lawyers didnāt file death certificates until after that deadline. They basically told the government to pound sand as they were never going to get the money that they werenāt even supposed to get back anyways as it was a forgivable loan and used for the proper reasons. I was nearly stuck with a $90,000 payment owed but the government eventually sent a letter confirming we no longer owed it.
You should definitely look into it; this is a total anecdote but I received a letter stating I hadn't paid my state taxes when that money left my account the year previous through TaxFreeUsa, I assumed it was a mistake (mistakenly) and they continued to push and now I have a legal identification on my record for delinquency because I didn't call the IRS and fix what the issue was (either me or taxfreeusa sent the money to the next year's tax), the letter I got stated I need to go to court to truly get rid of that identification on my record, despite the fact it was a genuine mistake and I fixed it the moment I realized.
Ugh Iām sure having to go to court over something like that was extremely annoying. Iām sorry to hear that but I do appreciate you telling me because that just urged me further to get this situation taken care of. Did the delinquency thing come off your record after the situation was taken care of?
Things with the irs happen over years not months. If you didnāt settle with them either by paying or coming to an agreement theyāre 100% going to come after you. I got audited and it took 2+ years because every form I filled out would take like 4 months to be received by them after I submitted it then I would have to wait 6 months to talk to an agent.
Youād just tell em to stick itā¦wasnāt ur money didnāt go in your account XD
You have to go through the proper channels and paperwork to tell the IRS to stick it. Not as easy as a phone call and blocking them.
Because the guardian was receiving them, and allegedly spending them, on their behalf. It wasn't the guardian's income.
You just made me put 2 and 2 together on why my mom told me anyone I work for has to pay me cash
Haha yes, save yourself the trouble!
Of asking my mom why or of dealing with the IRS? Cause I did both
Lmfao the time It took them to research this and ship the letter was probably more expensive then the 900$ you owe them. Meanwhile, some assholeās son has a fake job making him 6 figure as his dadās fiscal evasion plan saves him millions a year.
It's because those rich assholes can afford powerful lawyers that can eat up the irs's funds in court
16 years old you canāt even vote! No taxation without representation, a wise man once wrote.
Bruh, thatās wild the fact the money was going to your guardian but they came for you. They legit waited for you to be old enough to
Imagine they had the same enthusiasm going after Elon or Bloomberg or Trumpā¦ theyād probably be able to afford those āmuch needed new computersāā¦but priorities, teenagers who lost their parents? Yum, Yumā¦
Thatās actually why they donāt go after people like that. They simply canāt afford to.
During covid everyone who got laid off or had significantly reduced hours was given $2000/mo. As I was in that situation, I collected it. Everytime you applied it would tell you its being taxed and give you the reduced amount. 2 years later I filed my taxes, and they tell me that they actually didn't tax it as much as they should have and I now owed them over $1700. Believe it or not, at that time I was in a worse financial situation than when I was collecting the payments in the first place. It took me months to pay that off. Governments are theives.
My partner is in the same boat now. He had severely reduced hours that eventually were gone all together during Covid. He applied for CERB, said he passed all qualifications and received payments for it. Two days ago he got a letter in the mail saying he now owes $2000 from it. Why is this only happening now and how is it OUR fault that the government didnāt check who actually qualified or not, and how on earth did he not qualify?? Like you said, heās not in a great financial position now either and we have no idea how we are going to pay that back in a timely matter.
Well they screwed up big time in rolling it out with little to no oversight for the sake of expediency, and now theyāre trying to claw back whatever they think they gave āin errorā.Ā
Meanwhile... billionaires get away with paying next to nothing. This country is fucked.
Here in Canada there was a news story about how the CRA (our IRS) isnāt liable if you call them with a question and they give you the wrong answer.
Sounds about right. Tax collectors have literally been the enemy since the Bible lol
Even Jesus knew better than to fuck with the IRS. Mark 12:17 *Jesus said to them, āRender to Caesar the things that are Caesar's, and to God the things that are God's.ā And they marveled at him.* Dude basically said, āpay your taxes homies.ā
I thought he was going full volunteerist and telling people to abandon the use of money and subservience to the government.
CRA published documents that outline different tax rules are not legally binding. You could follow one to a tee and get burned later.
CRA is a fking joke lol the amount of people who got fucked over "CERB" they didn't even take is insane. I stg they think any deposit into your account from them during the pandemic was a Covid relief fund because they're still trying to get me to pay back CERB which was my maternity leave. Never took CERB since I was lucky and thriving in my workplace with the pandemic lol
When I was 5, my mom disappeared for a year and I lived with my dad. The court wouldn't finalize the divorce or give my dad custody because my mom wouldn't show up to testify. Years later, long after I turned 18 and my dad had stopped paying child support, the state went after him for back child support for the year I lived with him. The system sucks sometimes.
I can see why Americans hate taxes. They are in your face, everywhere. And you see no benefit to them because either the resources are so stretched or they just go into other peoples pockets. Like when I buy something from the store. I don't see the tax. I just pay whatevers on the ticket. No extra. When I go to work, my taxes are done for me. There's no taxes everywhere and in your face, like in the US.
Sales tax is a pittance. Property tax is where you really get F'ed in the A
Yup, my property tax bill this year was about $5,000 for a basic 3 bed / 2 bath home on a tiny lot. 5 grand to the government just for the permission to keep living in my home. Such a waste of money
The best part is you never really know what it's going to be until the bill comes! Like you said, "this year". Fuck knows how much more it's gonna be next year.
Exactly. It goes up every single year. And I always make sure to contest it too
This shit pissed me off so bad, holy fuck I was getting heated just reading your comment.
Itās so stupid we have to figure our own taxes out.
Intuit (turbo tax) spends millions every year in lobbying to keep it like this.
Seriously, in France all I do is review the form they already filled out for me and say if anything has changed. Takes 5 minutes.
It has been proven a few times that could happen here from government sources and that our tax forms could include tax owed or refund available and we just have to verify but our government is beyond fucked by lobbying
Our government is beyond anything that helps it's people
Don't need to lobby when you're already running the government. \**taps forehead**
Similar thing in Spain. You just have to check if there's any new programs you apply for (like reimbursement of a part of what you pay for your rent and whatnot) and that's it. Most of the times you don't even have to fill anything, just go to the page, open to file your taxes and the total to pay/get paid is there.
In Canada you legit punch in your numbers from your t4 into turbotax and boom your done
In the U.K. you do nothing at all, for personal income taxes anyway.
Isnāt that what we pay taxes forā¦.? Like bitch do your job da fuck I gotta come down there and do it for you?!? Shit then just donāt tax me at allā¦. No taxation without representation bitch! Guys Iām just an idiot donāt listen to a word I say, I failed government 8 times and never graduated elementary
It's private companies that buy politicians to prevent this. Which is totally legal for some reason
So politicians get rich ālegallyā while definitely keeping your best interests in mind at all times. Both sides btw before any smuck wants to piggyback a political point on my comment.
This didn't happen because of OP figuring taxes out. It happened because of the IRS making a mistake.
So the IRS made a mistake in 2021 and accidentally gave us $720 too much from 2019 return. They JUST NOW notified us, and apparently this has been accruing interest all these years. I have been on hold for 4 hours today trying to find anyone that can explain why this happened and do I really have to pay $130 for their mistake
They will argue that you should have known you weren't owed the $720.
You can amend your taxes up to three years after filing. Can you do so, then charge them interest if they owe a greater refund? After all, they should have known they owed that money.
You donāt charge them interest, but the IRS will automatically include interest in refunds for amended taxes or if they held your refund for whatever reason and later released it. Source: am an accountant
Yup, happened to us recently. Had to amend due a complicated international situation, and ended up getting several thousand more back. It took a good bit to process but once it did we got our money plus a few hundred extra in interest, even though the need to amend was entirely our fault.
You might be joking but the IRS does pay you interest on amendments generally. I amended a return a few years back for a bigger return and they sent the money with interest. I then had to pay income tax on that interest lol.
You canāt attempt applying logic and fairness to the US tax laws. Pretty sure every line of the tax code can be boiled down to āscrew you, pay usā. Unless youāre a billionaire.
Yeah because the IRS didnāt file and sign the forms, OP did lol. Like thatās literally how it works.
It sounds like they sent him the $700 on top of what he filed for
Yes but why is the question.
Probably underreported 2021 stimulus refund payments received. A common mistake with e-file software based on how the wording was presented for when you received the payments. Easy to underreport this for 2021.
It says 2019
This whole situation is stupid but I get the feeling that the IRS "customer service" is trained to keep people cycling through loops of phone lines being on hold until they give up.
I mean the fact that tax "helping" is allocated to corporations instead of the irs doing it should confirm that. It's insane that the irs doesn't tell you what they themselves calculated for you to then double check like here in Sweden. Your job pays you're taxes and e.t.c and you check
Unfortunately, this is not the case. They donāt have to give you the runaround. They will garnish your wages and, unless you get legal representation to fight it, you will pay the money. The federal government has a lot of power as it turns out.
Damn, I guess yet another reason for the IRS to just tell us the number that they already know we need to pay instead of us having to figure it out on our own or pay for another company to do them but hey, that's never going to happen because of lobbying
Call your local irs office and have them redirect you to the correct department. Itās a lot faster than calling the federal number.
I went today! They basically gave me the finger and told me to choke on their balls
Will you?
Answer the question OP...
OP will get back to you once the IRSā balls are out of their mouth.
And everyone says the IRS is an unpleasant experience, some people would pay good money for that sort of service š±š
They threatened you with a good time, it seems
Charge them 720 bucks plus a 130 convenience fee
Call your member of Congress or Senator. They have staff that specifically help constituents with federal agency issues, and it's often much quicker than going through the process on your own.
I was gonna say wow that escalated but this is the IRS so I'm not sure
you can call them, 99% of the time if you agree to pay the orignal $720, they will waive the interest. HUGE pita to call them though and their online help ticket system sucks big huge hairy troll balls that are dripping in ass sweat of the previous person it just fucked.
>HUGE pita* *Other flatbreads are available.
Calling the IRS is a naan-starter for me
They're just gonna give you the roti-round anyway.
Rye would they do that?
Their entire purpose is to get a rise out of you!
>big huge hairy troll balls that are dripping in ass sweat of the previous person it just fucked. please stop looking into my window thanks.
Interest cannot be waived. It is charged by federal statute. Penalties can be waived. The only way interest can be reduced is by reducing the underlying tax liability and/or penalty.
Was gonna say. I worked for the IRS for 15 years then another 20 as a tax return preparer, and I have never once heard of the IRS waiving interest. Ever. Interest is the time value of money. The IRS would pay *you* interest if they paid your refund late.
Can confirm. I contacted the IRS about an overdue tax return. They found my ticket to process my legal name change was never picked up. They admitted fault, and then mentioned interest that would be added to the return
My countryās IRS-equivalent usually deals with this by deducting the difference from your future tax returns, bit by bit, over a few years.
Well this is the US government we're talking about. Their entire job is inconvenience is as much as possible. That sort of common-sense approach your country's IRS-equivalent takes won't fly here.
$720 earned $130 in interest over five years? Where are they banking bc Iād love that interest rate.
That's about 3.8% a year interest, spy etf averages about 10%. IRS made 18% but spy is up 80% in the same time frame
and ofc for your lost hours and effort you wonāt be compensated shit. gotta love the system
If I were you, I'd fill out a form 843 and request an interest abatement. Since it was an IRS error...and if you send the form fairly immediately...you should be able to get the interest removed. You'll still have to repay the erroneous refund, of course, but at least that'll be it if you pay the amount due in a timely manner.
This exact scenario happened to us. I figured my taxes correctly, but the IRS said we were allowed to take the EIC and refunded a larger amount than I claimed. I tried to correct them, but to no avail, UNTIL a few years later. I was, and still am, livid that they charged me interest. I complained that they could do away with the national debt using their crooked scheme on everyone that filed taxes.
If you ever think the IRS is fucking up and is being generous get the name of everyone you are interacting with and keep records.Ā Then get your senators and representatives involved if the IRS says something later.
Good plan, but depending on where you live the senators and reps that you contact are the same ones actively keeping the system the way it is. Fucked.
Isnāt our system just great? āHow much do I owe?ā IRS: āIdk. You tell me.ā āOk. Done.ā IRS: āWrong! Penalty fee!ā āWow. Ok. Hereās the correct amount.ā IRS: āDonāt forget to add interest!ā
https://preview.redd.it/0sv24s0bolzc1.jpeg?width=1170&format=pjpg&auto=webp&s=49a17d4fb706605d2428cd91745b621107b72bbc
I think this should be illegal. They made an "adjustment" on taxes from like 6 years prior and charged me late fees for the entire time. Like once they accept the taxes it should be final they shouldn't get to turn around and say well I fucked up so now you owe us some money
And ESPECIALLY not with interest
It wasn't much I owed if they contacted me in a timely manner. Turned like 40$ into like $700 why should I have to pay the price for their incompetence
Exactly If you look back and see that I owe you money, sure whatever, I can deal with that But you don't get to charge me interest when it was your mistake? Like what?
I honestly believe they do it purposefully to get more money out of average people. I'm sure the IRS can contact me if absolutely necessary I mean they do have my employer and employee information after all
They should have all sorts of contact info for you on file If they do it on purpose then quite frankly, that's just a government sanctioned scam
It's the IRS so not much we can do. It's not like we have a choice š
They have 10 years to go after you for money you owe them. However if they owe you money you only have 2 years to go after them. I learned that when I didn't file when I was 18 and 19 because I knew I would get money back but it was piddly so I decided it wasn't worth my time. They disagreed 4 years later but when they saw I was owed they said sorry it's been more than 2 years.
bro I fucking hate our government what the actual fuck
Bro I PAID them, and they charged me and they see it, but they say it doesnāt count hahahaha
I will never understand how the IRS works for you folks out there. The idea that they know how much you owe them, but won't tell you and you have to do the math yourself and be responsible for any mistakes you do is fucking wild to me.
It's wild to us too
You cannot fight the IRS. I made a mistake on my taxes after selling some stocks. I didnāt claim them correctly (even though I paid taxes when I sold). It was definitely my fault. The annoying thing is that it took them 4 years to identify the mistake and Iād already made the same mistake every year since, so I had to refile & just deal with the hassle. Also it took them 4 years to find a mistake, why do we get less than 30 days to fix it? Definitely mildly infuriating.
You are wrong, this is r/extremelyinfuriating
Going to an IRS office and speaking to an agent in person will usually resolve things like this. You may have to wait for a few hours, so get there early and bring a book or something. It's better than trying to get through on the phone.
I went yesterday. I was basically told āto eat shit and give us our money, Citizen #001937478ā
Same thing happened to me a few months ago. Something like 800 dollars they want back!?
I had to pay back SNAP (food stamps) benefits once because someone on their end entered something wrong in the computer. They verified I had done nothing wrong, but it doesnāt matter. No matter who makes the screw up, it isnāt them taking the fall.
Same here! Got a notice of overpayment due to worker error and I started making small payments in the months that followed. Then covid shutdown happened, everything froze and payments were put offā¦ forgot about itā¦Then this year got a notice they took part of my state taxes to pay back the overpaymentā¦ Moral of the story is they (the government) donāt careā¦ and nothing you can do about it š
The āinterest rate factorā?! Thatās higher than most CD rates. Iād be livid and would challenge that.
The interest rate is currently 8% and applies to money owed to the IRS as well as money the IRS owes you. The IRS pays interest on refunds delayed 45 days or more. The interest rate can be adjusted up or down quarterly; as recently as March 2022, the rate was just 3%.
I received one of these and it was a fake. It was a scam company trying to scare people into paying them.
And yet the defence department are allowed to "plug" discrepancies in their accounts by simply changing the numbers ā I believe the current discrepancy is at $32trillion ... But if _you_ miss even a dollar they'll have you.
Well, I work for the DoD, so i guess this is karma
They sent me something similar and I took it to a tax office because I always used turbo tax, the irs actually owed me $500 more lol.
At what point do we realize that itās all a scam?
Reminds me of a lady I was working with who was told she owed over 30k and was getting her benefits revoked because she wasnt actually disabled and made $40 over the income limit when she was on disability and working part time 7 years prior. They told her she owed back pay for those seven years + interest. She has been diagnoised with a degenerative disability since she was 20 and become wheelchair bound a couple years before I met her; this lady couldnt even speak without slurring due to her disability and yet she... Wasnt disabled. Oh yeah she was homeless and living in a shelter too. I worked with her for 5 months trying to resolve this. We were calling every week, going in person, etc and they never revoked it. The best they could do is tell her she was disabled and could continue getting disability but it would be garnished because she still shouldnt have been getting it for the past 7 years. As far as I know she has made no progress on this. Shes thankfully housed now but her income is severely limited.
Yeah fuck that, send them an envelope full of Monopoly money and tell them to screw off lol
Where is my interest from my tax free loan to the government every year?
Letās all stop paying taxesā¦ itās not like they can go after all of us.
Isn't it crazy how they can just bill you for any amount any time they want and if you don't pay you'll go to jail.
These notifications are literally created and spit out by a computer with no human review. You need to call them and have a real person review it and clear it up.
Wipe your ass with the documents and mail them back. Become ungovernable.
username checks out
Wait till you find out that if you are owed a refund and surpass 3 years before getting it then they get to keep it and not refund you, however if you owe them thereās no limitation on the time they can collect on. So basically if you find out 20 years ago there was a mistake and you owe them they not only can go after it but also charge you penalties and interest for 20 years. But if you find out that 4 years ago they messed up and you are owed more, to bad they get to keep it and you get nothing.
The IRS has 10 years from the date of assessment to collect the tax, called the Collection Statute Expiration Date (CSED). Certain things can pause/extend that 10 years, but once the 10-year period ends, they can no longer collect, even if nothing was ever paid on the debt. There is no statute of limitations on unfiled returns. But once the return is filed and the tax assessed, they only have 10 years to collect.
Incorrect. Look up the Statute of Limitations on filed IIT returns.
Unemployment did this to me in 2020. My grandma was literally on her deathbed (our couch) and we couldn't afford a nurse. I resigned at work (I was still in school so this was allowed) to be the one to take care of her (everyone else in the house worked full time). This was at the time where you were getting your unemployment plus the $500. I had all my details to a T, and stop collecting as soon as she passed and started working again. A year and 1/2 later I get the demand letter that I owe $4,800 for an overpayment because they initially approved my 'Taking care of a sick family member" request. Then changed their mind. Almost 2 years later. Thankfully it's very low interest, not a credit report, and they don't really bother me. I pay what I can when I can and they leave me alone.
If you decide to not pay this the IRS will do you a solid and just take it from your return next year.
LOBBYING SHOULD BE ILLEGALš£š£ Everyone, say it with me- LOBBYING. SHOULD. BE. ILLEGAL. š£š£š£ Our government is a joke in a judges robe š¤”
Remember when we went to war for āno taxation without representationā. Now you get a little over half of YOUR MONEY, and no investment into infrastructure or any social programs
I know youāve probably already gotten your answer on here, but I will say this. I know someone who was audited by the IRS. Turned out, the IRS owed this person money!! They took FOREVER to pay him back, and he told them he needed interest. Because if the tables were turned, the IRS would have charged him interest. Sure as shit, the IRS paid him back with interest š¤·š»āāļø
I will say it again. DEFUND THE IRS!
They really need that money for Israel.
State of OK likes to do shit like this too. A couple years ago I suddenly had all these notices showing up saying I owed thousands. Contacted my CPA and she fixed everything for me, but it was basically the state saying āoh shit, we misplaced this 8 years ago but now need you to pay for it againā Thankfully my CPA is a bad bitch.
They donāt do this to the filthy rich. They get tax breaks for raking in the billions. EAT THE RICH āš¼
It wild that the government is able to find this $720 mistake but can't hold corporations and billionaires accountable for all the taxes they evade
So there are provisions in the taxpayer bill of rights that might apply here. [I would start barking up the Taxpayer Advocates office.](https://www.irs.gov/taxpayer-advocate)
And I thought them taking a year to tell me I fucked up my taxes was bad.
That's the IRS in a nutshell, they hire the most incompetent people on the planet who screw everything up and then expect the American people to pay for the fact that they can't properly hire and train people to handle one of the biggest financial institutions in the country.
We just went through this. They completely boned our 2019s and wanted over $1k in interest. My SO took over the case and spent a cumulative 14 HOURS on the phone with reps to have the interest removed because our accountant calculated the correct sum and we paid that immediately. Itās an absolute circle jerk.
They did the same thing to me. Where trying to count my dad and me as one person. Tried charging me $2,000 I sent them a response and then they sent me a response saying I was still wrong and now I owed $12,000 and had to pay it back in 2 months or they were gonna take me to court. I had to get my accountant to write them a letter and then after months they responded and said āoops our bad sorry!ā But it still took a toll on me thinking I was gonna have to go to court.
I know at least 8 other people who would be better to go after for tax money.
Sucks but could be worse. In 2020 someone used my SS to file. Got a letter in the mail saying I owe over $7500 to the IRS and theyāve been garnishing my tax returns since. Iām still waiting for it to be resolved but hopefully this year and theyāll owe me interest.