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When does IRS refund check expire?

 
 
Help Me
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      04-01-2004, 01:10 PM
What is the time limit for cashing an IRS refund check?

My son received a refund check last May for the 2002 tax
year. He neglected to cash it. He believes that he had
only 90 days to cash an IRS refund check. So he believes
the refund check is now worthless.

Assuming that my son now wants the refund money, what
should he do, if the refund check is indeed expired? For
example, is there a procedure for requesting that the IRS
issue a new refund check (if necessary)? If so, what is
the time limit for such a request?

To compound the problem, I believe that the IRS refund is
in excess of the refund due. Along with the refund check,
my son received a notice that the IRS "corrected" the tax
computation. The IRS "correction" resulted in a larger
refund. The notice indicated that my son had 60 days to
challenge the "correction".

At the time, I explained to my son that the IRS must have
misread a handwritten "computer zero" (slashed zero) for
a "one". That resulted in a miscalculation by the IRS.
My son was supposed to send the explanation to the IRS
and request a new refund check. He never did. And of
course, by now the 60-day period has elapsed.

Given those facts, what should my son do now about the
refund? Even if the check is redeemable, should he cash
it, given that it is more than he deserves?

I presume that the IRS has until 2006 to review the tax
return and send a new notice of correction, essentially
overruling their previous "correction". If that happened,
would my son owe interest (at least) on the amount of the
refund that exceeds the correct refund?

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TaxmanHog
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      04-02-2004, 10:59 PM
"Help Me" wrote

> Assuming that my son now wants the refund money, what
> should he do, if the refund check is indeed expired? For
> example, is there a procedure for requesting that the IRS
> issue a new refund check (if necessary)? If so, what is
> the time limit for such a request?


Yes, see below

> To compound the problem, I believe that the IRS refund is
> in excess of the refund due. Along with the refund check,
> my son received a notice that the IRS "corrected" the tax
> computation. The IRS "correction" resulted in a larger
> refund. The notice indicated that my son had 60 days to
> challenge the "correction".
>
> At the time, I explained to my son that the IRS must have
> misread a handwritten "computer zero" (slashed zero) for
> a "one". That resulted in a miscalculation by the IRS.
> My son was supposed to send the explanation to the IRS
> and request a new refund check. He never did. And of
> course, by now the 60-day period has elapsed.
>
> Given those facts, what should my son do now about the
> refund? Even if the check is redeemable, should he cash
> it, given that it is more than he deserves?
>
> I presume that the IRS has until 2006 to review the tax
> return and send a new notice of correction, essentially
> overruling their previous "correction". If that happened,
> would my son owe interest (at least) on the amount of the
> refund that exceeds the correct refund?


I have seen this occur in the past!

Your instinct is most likely accurate, and if we are talking
about tax year -2002, these returns will be going into
CP-2000 analysis this Summer, if the suspected transcription
error results in a {RE-ADJUSTMENT} your son will be liable
for the balance of tax due plus interest.

He really should have Protested the increased refund, and
explained his perception of the correct tax liability, with
that additional information the tax examiner would have been
able to make the most accurate adjustment possible 99% of
the time.

Today he could now return the UNCASHED-VOIDED refund with a
Letter of explanation and a EXACT copy of the return for
review and adjustment.

Once the fix is made and the account settled, the NET true
refund would be mailed to him.

Since we are getting close to CP-2000 process year the cases
are being classified & and queued up for analysis & review,
he may get a contact letter at the same time or soon after
voluntarily resolving the issue, If this happens make sure
they are aware the resolution is/was in process.

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Ernie Betts
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      04-05-2004, 07:51 PM
(E-Mail Removed) (Help Me) wrote:

> What is the time limit for cashing an IRS refund check?
>
> My son received a refund check last May for the 2002 tax
> year. He neglected to cash it. He believes that he had
> only 90 days to cash an IRS refund check. So he believes
> the refund check is now worthless.
>
> Assuming that my son now wants the refund money, what
> should he do, if the refund check is indeed expired? For
> example, is there a procedure for requesting that the IRS
> issue a new refund check (if necessary)? If so, what is
> the time limit for such a request?
>
> To compound the problem, I believe that the IRS refund is
> in excess of the refund due. Along with the refund check,
> my son received a notice that the IRS "corrected" the tax
> computation. The IRS "correction" resulted in a larger
> refund. The notice indicated that my son had 60 days to
> challenge the "correction".
>
> At the time, I explained to my son that the IRS must have
> misread a handwritten "computer zero" (slashed zero) for
> a "one". That resulted in a miscalculation by the IRS.
> My son was supposed to send the explanation to the IRS
> and request a new refund check. He never did. And of
> course, by now the 60-day period has elapsed.
>
> Given those facts, what should my son do now about the
> refund? Even if the check is redeemable, should he cash
> it, given that it is more than he deserves?
>
> I presume that the IRS has until 2006 to review the tax
> return and send a new notice of correction, essentially
> overruling their previous "correction". If that happened,
> would my son owe interest (at least) on the amount of the
> refund that exceeds the correct refund?


All Federal Government checks expire 1 year after the issue
date. After that you must request a re-issue from the
original agency.

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Help Me
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      04-07-2004, 08:30 AM
"TaxmanHog" <(E-Mail Removed)> wrote:

> Today he could now return the UNCASHED-VOIDED refund with a
> Letter of explanation and a EXACT copy of the return for
> review and adjustment.


Thanks for the response. But I don't think I got an answer
to my first question, namely: what is the time-limit, if
any, for cashing an IRS refund check? My son thinks it is
90 days(!).

> Your instinct is most likely accurate, and if we are talking
> about tax year -2002, these returns will be going into
> CP-2000 analysis this Summer


For my edification, what is "CP-2000 analysis"? What does
"CP-2000" stand for?

> if the suspected transcription
> error results in a {RE-ADJUSTMENT} your son will be liable
> for the balance of tax due plus interest.


If by "balance of tax due", you are referring to the
excessive refund, I'm sure that is true only if my son
had cashed the excessive refund check. He did not.

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Help Me
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      04-07-2004, 09:08 AM
(E-Mail Removed) (Ernie Betts) wrote:

> All Federal Government checks expire 1 year after the issue
> date. After that you must request a re-issue from the
> original agency.


Thanks. With respect to refund checks, this answer was
confirmed by IRS Pub 17 at
http://www.irs.gov/pub/irs-pdf/p17.pdf.

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TaxmanHog
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      04-08-2004, 08:22 PM
"Help Me" <> wrote:
>>"TaxmanHog" <> wrote:


>> Your instinct is most likely accurate, and if we are talking
>> about tax year -2002, these returns will be going into
>> CP-2000 analysis this Summer


> For my edification, what is "CP-2000 analysis"? What does
> "CP-2000" stand for?


Compliance Program, it is technically NOT an audit process,
but a math verification process of certain line items as
compared to W-2 & 1099 and other information returns, the
work is performed by GS-592 Grade=4/5/6 Tax Examiners,
{pretty simple work}.

Occasionally these returns are {Referred} for a traditional
Audit of issue in greater dept by an Office or Field
Auditor.

btw

I was reviewing a new Collection case today my issues are
Big Dollar payroll taxes not paid by a corporation, I
completed "Officer Compliance" checks required for the
corporate case and noticed the President & Treasurer
(Husband & Wife) of the corporations year 2002 form 1040 tax
account was coded on 03/2/2004 with TC-922 Process code-03,
which is internal lingo for Case selected for review, the TP
& SPOUSE apparently reported lower wages than their (his &
hers) composite W-2's show.

The bureaucratic wheels of justice creak slowly, but they
will face a probable CP-2000 letter some time this year.

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Harlan Lunsford
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      04-12-2004, 09:35 AM
TaxmanHog wrote:
> "Help Me" <> wrote:
>>> "TaxmanHog" <> wrote:


>>> Your instinct is most likely accurate, and if we are talking
>>> about tax year -2002, these returns will be going into
>>> CP-2000 analysis this Summer


>> For my edification, what is "CP-2000 analysis"? What does
>> "CP-2000" stand for?


> Compliance Program, it is technically NOT an audit process,
> but a math verification process of certain line items as
> compared to W-2 & 1099 and other information returns, the
> work is performed by GS-592 Grade=4/5/6 Tax Examiners,
> {pretty simple work}.


And here I thought they were a product of an IBM-360!

> Occasionally these returns are {Referred} for a traditional
> Audit of issue in greater dept by an Office or Field
> Auditor.


Okay then, in the same vein, I've a CP2000 which came out of
Ben Salem, PA (is that really the Philadelphia service
center?)

It asks for verification on a 19000+ contribution of former
store fixtures, in fact the only block checked is for
charitable contributions. Pretty straight forward, and I
find another 2300$ worth of actually checks to the church.

However: this 2002 return we had already decided to amend to
include some more schedule c income (long story, won't bore
you).

What to do now? should we first answer the cp2000 letter
and then later amend? Or send the amendment along with
the verification of contribs as requested?

Cheer$$,
Harlan Lunsford, EA n LA

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TaxmanHog
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      04-13-2004, 07:37 AM
"Harlan Lunsford" wrote...
>> TaxmanHog wrote:


>> Compliance Program, it is technically NOT an audit process,
>> but a math verification process of certain line items as
>> compared to W-2 & 1099 and other information returns, the
>> work is performed by GS-592 Grade=4/5/6 Tax Examiners,
>> {pretty simple work}.


> And here I thought they were a product of an IBM-360!


The computer is used to do the initial screening.

All returns which balance to the IRP's perfectly are not
selected for {HUMAN} review, those with any type of
miss-match {above tolerances} will be selected, and can be
identified with the TC-922 PC-03.

The computer then categorizes the returns into classes based
on the dominant error detected,

The computer then prepares reports and pull orders with
sequencing serial numbers to assist GS-2 & clerks who batch
the production runs, In the old days {Prior to AUR} the
return was associated with a U/R transcript which was
composed of CASE MAJOR which represented the key line items
under suspicion of error to the composite of IRP documents,
behind this were the CASE MINORS, which are each & every IRP
document (W-2, 1099, ETC)

In today's world, the {Automate Under Reporter} system
replaced the paper CASE MAJOR/MINOR.

The original tax return is still Eye-Balled for obvious
Transcription errors, and detection of creative horse play
by the tax payer such as wages on line 8, interest on line
10, etc.

>> Occasionally these returns are {Referred} for a traditional
>> Audit of issue in greater dept by an Office or Field
>> Auditor.


> Okay then, in the same vein, I've a CP2000 which came out of
> Ben Salem, PA (is that really the Philadelphia service
> center?)


Not sure, I know that in the old days The under reporter
unit for Andover was located in Methuen Mass One town away,
neatly hidden in the middle of an industrial park.

It could be possible that a Sub-POD is located in Ben Salem,
though the IRS web site does not mention the location,
http://www.irs.gov/localcontacts/art...=98326,00.html

> It asks for verification on a 19000+ contribution of former
> store fixtures, in fact the only block checked is for
> charitable contributions. Pretty straight forward, and I
> find another 2300$ worth of actually checks to the church.
>
> However: this 2002 return we had already decided to amend to
> include some more schedule c income (long story, won't bore
> you).
>
> What to do now? should we first answer the cp2000 letter
> and then later amend? Or send the amendment along with
> the verification of contribs as requested?


Prepare the amended return and submit with the
{agree/partial agree/protest} concerning the proposed
changes shown on the CP2000, once all the issues are
resolved the final adjustment will be posted and billed if
they have not sent the payment with the {1040x/partial
agree}.

The actual tax return is in the U/R examiners hands at this
moment, if they are not able to validate the amended return,
The UR case & amended return will be reviewed by a more
experience TE or Office Auditor, and the final adjustments
posted.

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Phil Marti
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      04-14-2004, 07:05 AM
>> Okay then, in the same vein, I've a CP2000 which came out of
>> Ben Salem, PA (is that really the Philadelphia service
>> center?)


> Not sure,


Various functions at PSC have used a Ben Salem mailing
address for years.

Phil Marti
Topeka, KS

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