Rebate received less tax already paid

[BHoffman]

I'm not sure if this has already been discussed. Client paid tax using form 1040V. Then got a letter from IRS showing the tax due, plus a little penalty and interest. He replied with a copy of the cancelled check for the tax, and remitted payment for the penalty and interest. Then got his rebate check, less the tax, penalty, and interest that he's already paid.

How do I help him straighten this out?

Thanks for any advice.

[DaveO]

Take it to the Taxpayer Advocates office.

Otherwise you could try e-services if you are connected there. If not think about it. It's really handy for getting transcripts.

[JohnH]

Tell him Joe Biden congratulates him for being a good patriot.

http://news.yahoo.com/s/ap/20080918/ap_on_el_pr/biden_taxes_3

[tax info man]

Write letter

I have had the same situation happen and I have written a letter with all info and it has fixed the problem. It is not a fast solution but it is effective, they will even pay interest on the amount that should have been received.

[BHoffman]

Thanks for replies. I'll try the tax practioner hotline first.

JohnH - my opinion of Sen. Biden's notion of patriotism is not appropriate for a public forum.

[JohnH]

Same here, but Biden's fun to watch & hear. You can count on him to stick his foot in his mouth at least once a day.

[newbie]

Thanks for replies. I'll try the tax practioner hotline first.

JohnH - my opinion of Sen. Biden's notion of patriotism is not appropriate for a public forum.

I'm in 100% agreement. They all stick their foot in their mouth and when that doesn't happen the media finds a sound bite to take what was really said out of context. You probably are in agreement that Obama called Palin a pig too!

As for the question, obviously if the taxpayer is receiving a rebate they're not making $250,000+ so he need not worry about the notion of patriotism, so a letter will work, but eservices might be quicker.