Must you return a $600 stimulus check if the IRS accepted your Offer In Compromise settlement in Y2007?

Question

The IRS Offer in Compromise agreement states that you must return any refunds or overpayments for the year in which your Offier in Compromise was accepted. Does this include an economic stimulus check the IRS has sent, possibly in error?

Answer 1

If you receive it in 2007, you must return it.  If you don't receive it until 2008, you can keep it.

Answer 2

Good question. Since the "rebate" is in effect an advance of the 2008 tax cut, one could argue that it's a refund from the next year's taxes. To be sure, though, call the number on the acceptance letter you received.

Answer 3

the stimulus is a rebate for the year 2008 based on 2007 filings.... your question would be best posed to the IRS ....and document the conversation by getting the persons name and id#

Answer 4

I will be looking into this tomorrow, and trying to get a definitive answer on it.  However, I would recommend contac ting the IRS immediately and returning the stimulus check.  I certainly would not chance cashing it until you have a definitive answer.  If you were fortunate enough to have an offer accepted in the first place, you certainly do not want to do anything that may cause you to default on it.  Especially for a measley six hundred dollars.  Feel free to email me directly tomorrow and I will try to get you an answer on this.

Chris Jacquez

President, eTaxrelief