A client who is not aware of owing the NC government anything found that his refund check was for $80 less than I calculated it should be. I told him his best bet is to wait for NC to write him a letter of explanation and get that to me ASAP. Am I right in thinking that there's no point in him or us calling NCDOR? He would likely prefer to pay me my usual per call fee rather than wait a week or do the call by himself and I don't mind doing it as long as there is little chance we will be told the info is not available but in time a letter will come. Any thoughts? Would the online where's my refund reveal anything about why the refund was less than expected?
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Last week I had a client call wondering if I knew why his NY refund was a couple hundred less than I had calculated. He read me the letter, I determined where they said the difference was, but couldn't figure out why. He said he would call on it. Less than 15 minutes later he calls back, he had got a hold of someone in Albany, they said it was their mistake and would get a check right out for the remainder of his refund. I was astounded he got through so quick!Originally posted by erchess View Post -
Heather at the local office will tell you if you call. You'll need the GEN-58 of course.
karlComment
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NCDOR is crafty
Assuming there were no issues with the preparation of the tax return, or matters such as state tax payments incorrectly reported, the NCDOR can get very creative. (see below) I agree it is difficult and a near waste of valuable time....unless the client likes to pay you more $$$...to call NCDOR at this stage. I would just wait a reasonable amount of time for an explanatory letter.
It is my (very limited) understanding that county/local liens can now also go against a refund from NC. Things such as unpaid vehicle/property taxes or maybe even parking fines can now be out there. One (non-client) I knew even got dunned because of a lost/overdue book from a university library. Unpaid/forgotten/overlooked student loans seem to be a fairly common problem for refund reductions.
From NCDOR website:
Before the NC Department of Revenue issues a refund, we are required to check for any outstanding debt that you may have with the agencies of NC or the IRS for which we have received notification. If any such debt is found, the amount you owe may be deducted from your refund. Examples of this type of indebtedness would be owing Child Support or owing a university for a student loan.
State and local agencies of NC may file a claim with the NC Department of Revenue for a taxpayer's refund.
If all or a portion of your refund is applied against your debt with another agency, the NC Department of Revenue will send you a notice to identify the state agency receiving your refund and the telephone number of the agency. If you file a joint tax return, your spouse's portion of the refund will not be applied to your debt. If a portion of your refund is sent to a state agency, the remainder of your refund will be mailed after the offset occurs.
If you owe the IRS, the total refund shown on your return may be sent to their agency. If you file a joint return, there is no provision in State or Federal law that allows the NC Department of Revenue to prorate your IRS refund. If you have "innocent spouse" status or "injured spouse" status with the IRS, you will need to contact the IRS at 1-800-829-1040 for any refund that may be due.
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