So I filed my 2007 Federal Taxes. I owed them $70 when I filed but had not sent the money. Should I assume that the rebate check will come on time ( per the alst two digits of Soc Sec) and that the $70 owed will be deducted from it?
Does anyone know, having a hard time finding the answer.
The stumulus rebate payment is not dependent on the income tax refund amount. If you owe 70, you owe 70 and had beter pay it.
Yes. They'll also deduct the penalty and interest you owe for not paying your 2007 taxes on time.
Editorial comment. With the politicians and press blathering about a "rebate," unless I missed it IRS never did a Q&A addressing OP's situtation. This is the third time I've seen this come up in various venues. Someone at IRS was asleep at the switch.
Here's the only Q&A I've seen on offsets.
Q. The notice I received shows that I should have gotten more than the government actually deposited into my bank account. Did something go wrong?
A. It could be that the amount deposited into your bank account was what remained of your stimulus payment after it was offset for money you owed on back taxes or other debts such as a student loan or child support. If this is the case, you?ll receive an additional notice, providing details on the offset.
There are other Qs & As on timing that say a taxpayer won't get an ESP until the IRS has finished processing the 2007 tax return. That leaves me to believe that the ESP will be offset for 2007 taxes not paid with the filing of the return.
Well, I did miss it. Just now stumbled across such a Q&A dated 2/28 on this new page:
Since it is actually a "rebate" of 2008 taxes, I sure wouldn't bet that _anything_ will be deducted. The IRS might not process the non-payment of 2007 tax any differently than they have in the past when there were no rebate checks.
The event which causes the credit to generate, is the posting of the 2007 return.
When that occurs, tax module 2007 will reflect the $70 due plus statutory additions of interest & penalty on the date assessed.
Simultaniously, tax module 2008 will be credited with the appropriat value credit your entitled to based on the details on your 2007 return: filing status, exemptions & income levels, etc.
Either in the same or following WEEK an automatic credit transfer of the amount of needed to settle the balance due on 2007 will generate, along with a net refund check to you.
Most likely this refund will be by check in the snail mail.
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