IRS delivered a Knockout Punch to RAL

[Edsel]

Reality Check

My brother pawned his $1200 Martin Guitar for $200. Two weeks later he redeemed the guitar for some $225. Any idiot can calculate that this interest rate exceeds 400%.

However, out state subjects all pawning to its usury laws, so the pawn shop had to live by the law. His $225 was broken down this way:

$200 Principal Redemption
$1.08 interest
$23.92 storage fee
$225.00 Total

You figure.

[luke]

thanks

THANKS Taxmandan - could save some $ for sure!

[taxmandan]

Thanks for the info.

Do you mean that you don't have to fax the form like you have to fax in POA's?

Nope, don't fax anything unless FMS calls and wants to verify that you had a signed Form 13. Never had that happen in all my years of calling. It's like the 8879, keep it in your files for a few years.

[MAJ]

FMS Information request...

You need to call the FMS offset to find out if there is an offset of the refund BEFORE you file the return. I usually do it before I even prepare the return, when the client indicates that they want a RAC or RAL. I haven't lost a fee yet to an offset.

So you call the FMS - Do they readitly provide this information? Do you need the clients authorization or does this go under the public information line?

[WhiteOleander]

Nope, don't fax anything unless FMS calls and wants to verify that you had a signed Form 13. Never had that happen in all my years of calling. It's like the 8879, keep it in your files for a few years.

Thank you very much. This will save so much hassle.

[taxmandan]

So you call the FMS - Do they readitly provide this information? Do you need the clients authorization or does this go under the public information line?

It's an automated response, if there is an offset it gives the agency and phone number that the taxpayer can call to find out the details (they already know all about it, just forgot to tell you). The Form 13 is the authorization for you to access their information.

The one that surprised me was an offset for fines on a traffic ticket. It was about $800 and the state court took their refund. Glad I called cause that wasn't something I asked him about.