Economic Stimulus Payment


L

Larry Israel

Due to my laziness in filing income tax, I had to pay interest. I sent a
check, but at the same time the IRS decided to save me the trouble and
deducted the amount from the economic stimulus payment. Now the end of the
year approaches, and I want to know what to do. The following choices
seem reasonable:

1) Write to the IRS and explain the situation, and ask for their help.
2) Count the amount withheld as estimated tax/overpayment, and deduct
it from the 2008 income.
3) Kiss my seven dollars and thirty cents goodbye.
 
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P

Phil Marti

Larry Israel said:
Due to my laziness in filing income tax, I had to pay interest. I sent a
check, but at the same time the IRS decided to save me the trouble and
deducted the amount from the economic stimulus payment. Now the end of the
year approaches, and I want to know what to do. The following choices
seem reasonable:

1) Write to the IRS and explain the situation, and ask for their help.
2) Count the amount withheld as estimated tax/overpayment, and deduct
it from the 2008 income.
3) Kiss my seven dollars and thirty cents goodbye.
When did you pay the additional tax? When did you file the return? When
did you get the stimulus payment? Specific dates, please.

A note to lurkers. When you owe IRS interest it's best to let them bill you
for it. The amount won't go up, assuming you pay it promptly when you get
the bill.
 
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Paul Thomas, CPA

Larry Israel said:
Due to my laziness in filing income tax, I had to pay interest. I sent a
check, but at the same time the IRS decided to save me the trouble and
deducted the amount from the economic stimulus payment. Now the end of the
year approaches, and I want to know what to do. The following choices
seem reasonable:

1) Write to the IRS and explain the situation, and ask for their help.
2) Count the amount withheld as estimated tax/overpayment, and deduct
it from the 2008 income.
3) Kiss my seven dollars and thirty cents goodbye.



They'll work it out and refund the difference to you in short order.
Remember that to the government "short order" means taking their time
sending your money back, so anticipate several months for things to settle.
My guess is, at this point in time, maybe by the end of January they'll
refund the overpayment.

DO NOT adjust the numbers on your 2008 return for any of this or you'll just
extend the problem into the 08 return. "Wash, rinse, repeat" is what you
want to avoid. Just let it play out all on it's own.
 

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