I just got a letter in the mail today from the IRS stating that I was overpaid on my 2006 Tax return 1,500?

Question

But in the letter it said that I could dispute these charges if i have proper paperwork to prove myself,(but I dont)it was HNR Blocks mess up figuring the wrong amounts on my earned income credit that leaded me to get overpaid by 1,500 bucks, the letter said that I have until July9th to respond, if not they said they will send me a final notice followed by a bill,So I dont actually think we actually OWE this money until as of July 9th,they said if I wasnt to respond by the due date.But my stimulus check is scheduled to go out on July 4th...do you think this will affect my rebate check?Because my check is asspoused to be coming before my due date on the response to me owing the money.

Answer 1

Your stimulus check won't be taken.

What does the letter say exactly as to why you owe the money?

Answer 2

I'm pretty sure HNR Block is insured you should contact them.

Answer 3

Did you get a CP2000 or did you get a fulfledged audit letter?

If  the letter you received was a proposal to change your tax return.  It may or may not have put a flag on your tax account.  If it didn't, it won't affect your stimulus going out.  But, clearly if you might owe $1500, you shouldn't spend the stimulus check if you get it.

You probably should get someone to review the letter you received.  While you believe HRB made a mistake, HRB could only work with the information you gave them.  What was missing?  What is being questioned?

Answer 4

Your stimulus will not be held. Because at this time the underrepoted amount has not been assessed you still have the time to correct the error.  

And don't blame anyone else for your mistakes, that is why you should review you tax returns and ask questions before sign and submitting to IRS>

Now respond to IRS and if you are going to owe them and can full pay then submit Form 9465 Installment agreement.

Answer 5

Yes - the IRS will probably take your rebate check.  You need to get with H&R Block to figure out what happened and they need to help you get it straightened out with IRS.  If they don't, next year look for a tax accountant who is an enrolled agent.  Enrolled agents have been tested by the IRS for their knowlege of the tax laws.  Some H&R Block tax preparers are good, but some barely know what they are doing...

Answer 6

You paid the preparer, and part of their service is to assist you when you get a letter like this.  So take the letter, and a copy of your return if possible, to the preparer.  If the office you used is not open or not available to you, find the closest office that is open now.  Let them help you respond to the letter.

I agree that you probably will still get the stimulus payment.  However, as of now you owe $1,500 unless you successfully dispute the assessment in writing by the due date.

If the preparer made an error, they will pay penalties and interest.  If you paid the extra refund guarantee fee, they will also pay the extra tax.  So take full advantage of that and file a claim for whatever you can get back from the preparer.

Answer 7

It's not likely to affect your stimulus payment, but if you really do owe the amount, they'll be taking it from any future refunds, including any EIC you get.  

It's pretty hard to mess up the calculation of EIC unless you were claiming a dependent you couldn't legally claim - if that's the case, you could end up ineligible to get EIC for several years even if you ARE eligible for it.