When does IRS refund check expire?

Discussion in 'Tax' started by Help Me, Apr 1, 2004.

  1. Help Me

    Help Me Guest

    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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    Help Me, Apr 1, 2004
    #1
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  2. Help Me

    TaxmanHog Guest

    "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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    TaxmanHog, Apr 2, 2004
    #2
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  3. Help Me

    Ernie Betts Guest

    (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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    Ernie Betts, Apr 5, 2004
    #3
  4. Help Me

    Help Me Guest

    "TaxmanHog" <> 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, Apr 7, 2004
    #4
  5. Help Me

    Help Me Guest

    (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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    Help Me, Apr 7, 2004
    #5
  6. Help Me

    TaxmanHog Guest

    "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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    TaxmanHog, Apr 8, 2004
    #6
  7. CP 2000 notices

    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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    Harlan Lunsford, Apr 12, 2004
    #7
  8. Help Me

    TaxmanHog Guest

    Re: CP 2000 notices

    "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/article/0,,id=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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    TaxmanHog, Apr 13, 2004
    #8
  9. Help Me

    Phil Marti Guest

    Re: CP 2000 notices

    >> 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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    Phil Marti, Apr 14, 2004
    #9
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