Refund Applied to Back Taxes - e-file vs Paper

#3 02-06-2006, 06:59 AM

Franklin Lutz wrote:

- quote -

> Due to an old bookkeeping snafu during some years I was self
> employed, I owe almost $10,000 in back Federal taxes. I have
> a payment agreement with the IRS for a monthly payment of
> the tax, interest, and penalties. One of the terms of the
> agreement requires that my refund (I am no longer self
> employed) be applied to the unpaid tax.
> This year, I have an excess withholding of $600. My question
> is, if I e-file instead of a paper return, will the "refund"
> be applied to the back taxes substantially quicker, thus
> saving some interest and penalties?
> Also, is there any need to enclose a note (in the case of a
> paper return) or other notice (with an e-file) to apply the
> refund to the past due tax? Or can I count on the IRS to do
> that automatically? I really don't want a check, I want to
> get the unpaid balance paid down as quickly as possible.

Don't worry, they will keep it. You do not need to include
a note.

Missy Doyle

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

#2 02-06-2006, 01:05 AM

Franklin Lutz wrote:

- quote -

> Due to an old bookkeeping snafu during some years I was self
> employed, I owe almost $10,000 in back Federal taxes. I have
> a payment agreement with the IRS for a monthly payment of
> the tax, interest, and penalties. One of the terms of the
> agreement requires that my refund (I am no longer self
> employed) be applied to the unpaid tax.
> This year, I have an excess withholding of $600. My question
> is, if I e-file instead of a paper return, will the "refund"
> be applied to the back taxes substantially quicker, thus
> saving some interest and penalties?
> Also, is there any need to enclose a note (in the case of a
> paper return) or other notice (with an e-file) to apply the
> refund to the past due tax? Or can I count on the IRS to do
> that automatically? I really don't want a check, I want to
> get the unpaid balance paid down as quickly as possible.

Here is one time that you may definitely count on IRS to do
the right thing.

ChEAr$,
Harlan Lunsford, EA n LA
Sun 5 Feb 2006

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

#1 02-06-2006, 12:46 AM

E-filing will get the refund to back taxes quicker by a few
weeks. You don't need to enclose a note if you file a paper
return, they will take your refund automaticlly because of
back taxes.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

02-06-2006, 12:26 AM

- quote -

> "Franklin Lutz" wrote....
> This year, I have an excess withholding of $600. My question
> is, if I e-file instead of a paper return, will the "refund"
> be applied to the back taxes substantially quicker, thus
> saving some interest and penalties?
> Also, is there any need to enclose a note (in the case of a
> paper return) or other notice (with an e-file) to apply the
> refund to the past due tax? Or can I count on the IRS to do
> that automatically? I really don't want a check, I want to
> get the unpaid balance paid down as quickly as possible.

It should post automatically 99% of the time, with out
special correspondence, EFILE accelerates to the posting,and
does help reduce overall accrued interest & penalty

On rare occasion, I have seen a taxpayer file a return with
a refund balance, the debt owed is on a current or former
spouses tax account, due to validation problems the two
entities are not fully linked and the refund check is issued
instead of offsetting to the liability account.

If this happens, in good conscience you would return the
refund with a letter asking that it be posted back to your
account, and then manually offset to the liability account.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

#-1 02-05-2006, 12:46 AM

Due to an old bookkeeping snafu during some years I was self
employed, I owe almost $10,000 in back Federal taxes. I have
a payment agreement with the IRS for a monthly payment of
the tax, interest, and penalties. One of the terms of the
agreement requires that my refund (I am no longer self
employed) be applied to the unpaid tax.

This year, I have an excess withholding of $600. My question
is, if I e-file instead of a paper return, will the "refund"
be applied to the back taxes substantially quicker, thus
saving some interest and penalties?

Also, is there any need to enclose a note (in the case of a
paper return) or other notice (with an e-file) to apply the
refund to the past due tax? Or can I count on the IRS to do
that automatically? I really don't want a check, I want to
get the unpaid balance paid down as quickly as possible.

--
FL

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

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