Fighting a 2009 assessment for client and client shows refund on 2011 return



Facts -

Client contacted me to file her 2011 return, and also showed me the 90-
day notice regarding a 2009 assessment (the 90 days had passed when
she showed it to me).

Client's assessment for 2009 was about $3800, but based on information
she gave me, I believe she only owes $1800 (she is eligible for an
education credit of $2000). I have written to the Reconsideration
Unit, given them this information and explained this whole situation.

Client's return for 2011 shows a refund of $2400, but I have not filed
it yet because I know it would automatically be applied against the
2009 assessment.

Assuming the Reconsideration Unit accepts her information and I am
successful in reducing the 2009 assessment down to $1800, is it safe
to file the 2011 return and let the IRS apply the refund to the $1800
balance owed and send the remaining $600 to her? Or is she better
off borrowing and paying $1800 for 2009 and then waiting for her full
2011 refund after that?

Thanks in advance.

Chris A Johnson, EA


Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question