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Discussion Forum Index --> Tax Questions --> Applying Garnished Wages as Credit
Taxworld2 (talk|edits) said:
| 23 March 2007
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| Is it possible to apply garnished wages as a credit on an amended return? Has anyone crossed this bridge? Do garnished wages get refunded by the IRS after they've received a amended/corrected return?
TW
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Lhhesscpa (talk|edits) said:
| 23 March 2007
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| Funds collected by the IRS by levy on wages or any other source are credited to the account for the oldest unpaid assessment. If an amended return reduces the assessed taxes the overpayment will be refunded or credited to another unpaid assessment if one exists. -- Larry Hess, CPA, Albuquerque, NM - Talk to me
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Taxworld2 (talk|edits) said:
| 23 March 2007
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| So of the reduced tax on and amended return results in an overall refund then it would be OK to apply garnished wages as tax previously paid. Seems logical however I'm not confident the IRS can digest it.
Anyone else?
TW
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Kevinh5 (talk|edits) said:
| 23 March 2007
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| It is an amount paid. It really is called a levy, not a garnishment, though.
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Karen258 (talk|edits) said:
| 23 March 2007
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| I have a client who didn't file taxes from 1997-2000. He had a garnishment because they estimated his tax liability which resulted in him paying in over $18,000. When I finally prepared his taxes he ended up not owing any taxes. I was told because the statue of limitations is over he would not be getting a refund. Does that sound right?
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Lhhesscpa (talk|edits) said:
| 23 March 2007
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| Karen, the refund statute is 3 years from the due date or 2 years from the payment date. If the original return you prepared was filed after either of those dates the client won't receive a refund or credit for the overpayment. -- Larry Hess, CPA, Albuquerque, NM - Talk to me
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