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Level 1
posted Mar 25, 2021 7:36:51 PM

Hello I received a cp23 letter stating I have a balance due of $113000 and I was only due a refund of $106858 and the irs says I won't get a refund is this true?

I thought that they would give you the refund and have you pay what is owed over time? It doesn't make any sense to me. As I made the estimated tax payments but even if I contest it I have no way to prove it now due to that account being closed and the bank and I being in court cause I'm sueing them

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1 Best answer
Level 15
Mar 25, 2021 7:41:15 PM

What do you need to prove?  Yes they will automatically take any past due out of your refunds.  Are you saying the amount is one hundred and thirteen THOUSAND?  I think for that much you should be using a CPA.

11 Replies
Level 15
Mar 25, 2021 7:41:15 PM

What do you need to prove?  Yes they will automatically take any past due out of your refunds.  Are you saying the amount is one hundred and thirteen THOUSAND?  I think for that much you should be using a CPA.

Level 1
Mar 25, 2021 7:43:51 PM

Yes that is what I am saying and it doesn't make sense why I still wouldn't get my refund. But if I paid that due amount and then amended my return would I then get that refund?

Level 15
Mar 25, 2021 7:48:49 PM

No point in doing that.  It would be a wash.  Why would you want to pay the past due to get the current refund?  That doesn't make sense.  Just let them keep your refund.

Level 1
Mar 25, 2021 7:50:11 PM

I understand what you are saying but if they keep it they said I will still have to pay the full $113000 that they won't apply my refund to that 

Level 1
Mar 25, 2021 7:51:29 PM

They are saying basically that none of my estimated payments that I made are showing on their end and because the account I used to pay them is now closed and I am sueing the bank they won't provide me anything I need to prove I made those payments

Level 15
Mar 25, 2021 7:54:17 PM

I don't think so.  Did they say you still owe 113,000 after they apply the refund to it?  Did you originally owe a lot more?  If you owe that much then the interest and penalty have been adding up.  Sounds like you need a tax attorney.  

Level 15
Mar 25, 2021 7:58:08 PM

How did you make the estimated payments?  Did you send in a check with a 1040ES slip?  Did you put your ssn on the checks?  You don't have the old bank statements?  

Level 1
Mar 25, 2021 8:02:06 PM

The amount that they gave me is showing the same as my tax amount on my return so I'm guessing they aren't applying the refund amount to my return 

Level 1
Mar 25, 2021 8:06:37 PM

I made them thru direct pay but no I don't have the bank statements and since I'm sueing the bank they won't give them to me. But what I don't understand is if they are saying they aren't applying my refund to the $113000 and I'm not getting a refund what happened to that refund/money?

Level 15
Mar 25, 2021 8:13:12 PM

TryThe Tax Advocate Service

https://www.irs.gov/advocate

Level 15
Mar 25, 2021 8:25:45 PM

"what happened to that refund/money?"

 

If you have tax due, there is no refund/money.

 

You need to review the explanation letter or call to know what the IRS did, particularly with regard to your Estimated Tax payments and why there is such a swing in the amounts from positive to negative.