(Disclaimer: I am in no way a tax professional, and this blog does not constitute advice on tax issues. If you have a situation, please consult the IRS or your own personal tax professional.)
A number of years ago I took a job through the local military chapel that was a “contract” position. In other words, I was responsible as a self-employed person to report the income which totaled all of about $800 for the year. Things got sticky when I sub-contracted some of my days only making and then claiming the smaller amount of income I actually received. The chapel, of course, reported the total amount they paid. I didn’t know how to keep track properly of payments to sub-contractors, and I didn’t think to ask the JAG Tax Office to work that all out.
That’s how the audit happened.
My army husband was stationed in Belgium at the time, and these were pre-skpye days (i.e. no cheap calls to US). Every phone call with the IRS trying to work through what was owed and what I had to document for the audit was painful although I have to give them kudos for gentle, professional manner. I, however, sat cringing each time the call waiting music stopped and the message informed me of approximately how much longer I had to wait. Those minutes were money going out of our family pockets for an issue that, when finally resolved, proved that the US Government actually owed us–$60.
I asked if they, the IRS, would send us the money which their own audit now showed we were owed?
I’d have to go file a 1040-X, the amended tax return, in order to recover the money owed. By that time of summer, the JAG Tax Office was closed till the next year, and I was ready to put the whole audit ordeal behind me. I never filed and never received that $60. I like to imagine that particular amount helped a young single mother somewhere.
Will the IRS pay you money it knows the government owes you? Well, it didn’t back then, and I suspect it won’t these days either. Not without a batch of new documents, which bring me to my more recent IRS experience and my next question.
Will the IRS pay interest on money it owes the tax payer?
Kristin King is a paranormal fiction author, military spouse, and mother to four sons. She is contracting new covers for her vampire series, after which the first novel will become a free ebook. Rather than blogging about books and writing, which would make too much sense, she blogs about travel, food, living abroad, current events and other random topics.