Discussion:Rebate Recovery Credit - delays processing of returns!
From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Discussion Forum Index --> Basic Tax Questions --> Rebate Recovery Credit - delays processing of returns!
Discussion Forum Index --> Tax Questions --> Rebate Recovery Credit - delays processing of returns!
Taxestaxes (talk|edits) said: | 25 January 2009 |
| I recevied a notice from the bank that I use for RAL products that stated, "IRS announced that returns that included a rebate recovery amount will be delayed in processing." Has anyone else received this notice? As well, if a return includes RCC amount, my bank is saying they wont process it as a RAL, they will decline it. I know most may not offer this option, but I have to in order to compete with others and keep my customers. I checked IRS website and could not find a notice regarding this issue? | |
| 25 January 2009 | |
| Drake sent out an email Friday saying that INCORRECT rebate recovery amounts will cause a delay. They recommend using the IRS 'How Much Was My Stimulus' tool to get the correct number, or leaving it blank and over-riding the calculation. | |
| 26 January 2009 | |
| Kevinh5 will your program efile if you override an amount? taxea | |
| 26 January 2009 | |
| Santa Barbara Bank sent out same notice. They suggest if client is due additional rebate to put zero and let IRS adjust. | |
| January 26, 2009 | |
| HSBS Bank has also decided to deny all loans that have part of the refund because of the Rebate Credit. A work around if client still wants the loan product is to enter an amount that will set the rebate credit to $0. The client would get that portion at a later time from the IRS. | |
| 26 January 2009 | |
| I've looked at this "workaround." It sure seems like a recipe for disaster, knowingly filing an erroneous return to juryrig a RAL. I'm not going to place that kind of return in front of a client and say, sign here. If the IRS blesses this pig, I might kiss it. But so far, it's just the industry saying, here, try this. No one at SBB&T has to sign the return. I do. | |
Taxestaxes (talk|edits) said: | 26 January 2009 |
| I agree Happy!!! I hate doing this too and having to explain it to the client!!! Some look at me like I am an idoit!! And then what if the IRS doesnt come thru with the RRC for some reason or it takes over a month. This client will be hounding me for his money!!! I hate doing RALs anyway, but have to to compete with others and keep some clients happy. | |
| 26 January 2009 | |
| Intentionally filing an erroneous return to facilitate usury - sounds ethical to me. | |
| 26 January 2009 | |
| I didn't save the notice from SBB&T, but I thought it mentioned IRS approval for putting zero.
However I agree with HAPPY TAX, tell the client the bank simply won't accept a RAL with RRC. | |
Death&Taxes (talk|edits) said: | 26 January 2009 |
| Nicely put, AEM. | |
| 26 January 2009 | |
| I also can't wait to get all of those new clients next year: "My prior preparer made a mistake in the IRS' favor, and the IRS sent me more money. I wonder how many year's he's made a mistake on my taxes that the IRS didn't catch?" | |
| 26 January 2009 | |
| Hi,
Working at HRBlock. We are entering $10,000 in our software to zero RCC (and perhaps create a flag). The effect is that the taxpayer is electing to not claim the credit. Supposedly, the IRS will later calculate and send anyway, I'm skeptical of this part. And yeah, I agree the bank products aren't so great. HSBC not exactly my favorite bank. | |
| 27 January 2009 | |
| Go Kevinh5!!!!!!! I say tell the customer the truth. Go to the IRS Wesite and get the Rebate amount and put it in correct to begin with. | |
| 27 January 2009 | |
| Apparently it was the IRS that suggested the work around by entering 10,000. Apparently that will be some flag or alert them to the situation. They will then process those returns with the correct rebate and issue refund of in approx. 4 weeks.
That is for now. More information etc. will be forthcoming from IRS shortly. | |
To join in on this discussion, you must first
log in.
