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2007 Stimulus Payment and Interest Owed

My daughter's 2007 payment was late, and she owed interest. She paid with a check, but days later she got a statement for the stimulus payment, and the interest owed had also been deducted from that. I asked on this list what to do, and was told that the IRS would fix the problem, and refund the interest. So far they have not done so. Now for the 2008 return should this extra interest payment be included in estimated tax paid, or could that cause even more problems?

Reply to
Larry Israel
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"Larry Israel" wrote

I see it as causing more problems if you try to "self-correct" the issue between years using the returns to do so.

KISS = Keep It Separate and Simple

File this years (2008) as it is without trying to fix an issue with a prior year.

Then keep after them about the problems with 2007. If necessary, go down to your local IRS office (or call) and get a "transcript of account" which will show what happened as it appears in their computers. Then you can begin to address the discrepancies with your version of what they say happened and try to get back any overpayment.

If there is no "local" office, see if a local CPA or EA will be willing to pull a transcript of account for you (it's 30 minutes of their time). They'll need her 2007 return info (at least) to do so. And think of doing that in May if you expect them to be reasonably priced (or free).

Reply to
Paul Thomas, CPA

I have to ask just how much did the daughter owe for 2007 and how much was that interest and/or penalties she paid?

Lastly, is it worth pursuing? I would quibble just a tad with Paul and suggest that 30 minutes of professional time to get a transcript won't be worth much. But you never know.

ChEAr$, Harlan Lunsford, EA n LA

Reply to
Harlan Lunsford

1) It is NOT an estimated payment for 2008.

2) File form 843, since you're not adjusting a tax.

Reply to
D. Stussy

She can get her own transcript of account directly from the IRS at no charge.

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Bob Sandler

Reply to
Bob Sandler

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