Discussion:Calculation of Interest on examed return

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Revision as of 19:37, 3 November 2009
Kevinh5 (Talk | contribs)
(sounds like the)
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EZTAX (Talk | contribs)
(When the 07 retu)
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{{ForumReplyPost|UserID=Kevinh5|Date=3 November 2009|Text=sounds like the IRS came up with a correct tax liablity overall, then.}} {{ForumReplyPost|UserID=Kevinh5|Date=3 November 2009|Text=sounds like the IRS came up with a correct tax liablity overall, then.}}
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 +{{ForumReplyPost|UserID=EZTAX|Date=3 November 2009|Text=When the 07 return was filed was the 1300 refund asked to be applied to 08 or refunded to the client? }}

Revision as of 20:52, 3 November 2009

Discussion Forum Index --> Advanced Tax Questions --> Calculation of Interest on examed return
Discussion Forum Index --> Tax Questions --> Calculation of Interest on examed return

Cody2826 (talk|edits) said:

3 November 2009
here it is...

the taxpayer filed his 2007 tax return in July 2009. The return showed an overpayment of $1300. The 2006 return was already being audited, so the examiner requested the 2007 return be directly filed with him. The 2007 return was audited and increased the tax to $1500. Thus the net tax increase is $200. The taxpayer gets hit with the late filing minimum penalty of $100, but the examiner is calculating interest on the entire $1500, not the $200. This doesn't seem correct. Am I missing something?

I have not discussed it with the auditor, but it seems wrong.

Kevinh5 (talk|edits) said:

3 November 2009
until the refund was issued (or at least authorized), it would seem like the IRS had the money and should not be charging interest on funds in its possession.

kind of silly, though, for the taxpayer to give an auditor a return with that much missing income/overstated deductions. Where did all of the intelligent clients go?

Cody2826 (talk|edits) said:

3 November 2009
Well...it comes down to agreeing to dissallowing some auto deductions and cash payments to independent contractors.

We had to give in to the auditor to allow 100% of the travel and meals and entertainment that was at best 70% business related.

Kevinh5 (talk|edits) said:

3 November 2009
sounds like the IRS came up with a correct tax liablity overall, then.

EZTAX (talk|edits) said:

3 November 2009
When the 07 return was filed was the 1300 refund asked to be applied to 08 or refunded to the client?
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