How long does the IRS have to give us our $?

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How long does the IRS have to give us our $?

Postby epilnk » Tue Jun 04, 2013 7:38 pm

Due to one time events, we are supposed to get a larger than normal refund this year. Due to one time events, instead of a refund the IRS sent us a letter telling us they were going to take a closer than normal look at our return this year. OK, fine - that's their job. But how long do they get to sit on our refund? There's nothing complicated or suspicious going on here; the audit itself won't need any additional info.
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Re: How long does the IRS have to give us our $?

Postby jebmke » Tue Jun 04, 2013 8:22 pm

I don't know but I can give you my experience from 2009. I filed my 2009 return in October of 2010 (I always file at the last minute). I had a very unusual and large deduction that flagged my return. I finally got clearance on my 2009 return in April of 2012 and the refund came in June, 2012. Their processes are slow. Be patient and make sure any communication with them is in writing with POD.
When you discover that you are riding a dead horse, the best strategy is to dismount.
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Re: How long does the IRS have to give us our $?

Postby tomd37 » Tue Jun 04, 2013 8:42 pm

I believe the IRS will pay you interest on the delayed refund, but I am not sure after how many days/months. Maybe somebody will provide more comments and details.
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Re: How long does the IRS have to give us our $?

Postby MarkNYC » Tue Jun 04, 2013 8:55 pm

Federal tax refunds can be delayed for various reasons, such as a missing or incomplete form or schedule, unexpected processing glitches, and new for this year, additional "filters" that cause some returns with large refunds to undergo extra review in order to combat identity theft.

Generally, the IRS will pay interest on refunds that are not issued within 45 days of the later of the date of filing, or the unextended due date (ie April 15). So if you filed prior to April 15th and have not received your refund by around June 1st, you will likely received interest on the refund. If the refund delay is not specifically caused by the IRS, then interest might not be paid.
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Re: How long does the IRS have to give us our $?

Postby Atilla » Tue Jun 04, 2013 9:12 pm

[OT comment removed by admin LadyGeek]
The Village Idiot - here for your entertainment.
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Re: How long does the IRS have to give us our $?

Postby epilnk » Wed Jun 05, 2013 12:49 pm

OK, thanks; it sounds like I just have to be patient. Maybe I should adopt the attitude that they're probably doing me a favor by keeping the money. I'd be required to put it into our bond funds, which are hanging at my rebalance threshold. So maybe a little IRS-mandated market timing will give the bonds time to fall a litte further.
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Re: How long does the IRS have to give us our $?

Postby Jack » Wed Jun 05, 2013 1:08 pm

epilnk wrote:OK, thanks; it sounds like I just have to be patient. Maybe I should adopt the attitude that they're probably doing me a favor by keeping the money. I'd be required to put it into our bond funds, which are hanging at my rebalance threshold. So maybe a little IRS-mandated market timing will give the bonds time to fall a litte further.

The IRS is currently paying 3% interest for over-payments, better than you can get anywhere else for safe, short term money. Maybe you should have tossed in an extra $10,000 or so on April 15th and left out a couple of supporting documents.
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Re: How long does the IRS have to give us our $?

Postby MnD » Wed Jun 05, 2013 1:10 pm

tomd37 wrote:I believe the IRS will pay you interest on the delayed refund, but I am not sure after how many days/months. Maybe somebody will provide more comments and details.


3% interest rate starting after 45 days after the return deadline is due.
Filing a legitimate (but dubious-looking) return with a large refund request that could be delayed for months or years may be a far better investment than bank accounts, CD's or total bond market. :mrgreen:
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Re: How long does the IRS have to give us our $?

Postby MarkNYC » Wed Jun 05, 2013 2:35 pm

Jack wrote:
epilnk wrote:OK, thanks; it sounds like I just have to be patient. Maybe I should adopt the attitude that they're probably doing me a favor by keeping the money. I'd be required to put it into our bond funds, which are hanging at my rebalance threshold. So maybe a little IRS-mandated market timing will give the bonds time to fall a litte further.

The IRS is currently paying 3% interest for over-payments, better than you can get anywhere else for safe, short term money. Maybe you should have tossed in an extra $10,000 or so on April 15th and left out a couple of supporting documents.

The IRS is not required to pay interest on a tax refund that is delayed as a result of a the taxpayer's action or inaction, such as submitting a tax return that cannot immediately be processed due to a missing or incomplete form.
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Re: How long does the IRS have to give us our $?

Postby epilnk » Wed Jun 05, 2013 7:56 pm

MnD wrote:3% interest rate starting after 45 days after the return deadline is due.

Bummer. We filed early, knowing that too much was withheld, but I guess this means 45 days after April 15th, or more or less now.
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