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Bonnie M
New Member

Unemployment exclusion waiver

My son's tax return was filed in early March prior to Congress passing the waiver for unemployment. When he filed he owed $2722. He was waiting until the May 15 tax deadline to pay the tax. In the meantime Turbo Tax showed that the correction was made and that he owed just $1681 after the adjustment was made with the $10200 exclusion.  He sent in a payment for the $1681 and he just got a CP14 letter informing him that he still owes the $1041 and it is due by 7/26.  Should he pay the $1041 and wait to get the refund or should he just ignore the letter and let the interest accrue?  I don't think they will waive the interest. It is impossible to get through to the IRS for an answer. Thank you.

4 Replies
fanfare
Level 15

Unemployment exclusion waiver

[removed by me]

Bonnie M
New Member

Unemployment exclusion waiver

He doesn't owe the $1041 because that is how much his tax bill was reduced by the waiver.

Mike9241
Level 15

Unemployment exclusion waiver

if the $1600+ is correct or more than actually owed, there is no underpayment and thus no accrual of interest or penalties.  if it's more than actually owed he'll get a refund with interest.

 

Critter-3
Level 15

Unemployment exclusion waiver

If he only paid the reduced amount then he can ignore the bill since it was autogenerated by computer when the original return was processed.  This is actually good news because it means  the return will now be sent to the unemployment processing department where they will conclude he paid in enough and thatl bill will be voided.  In fact they should send him a check for interest paid due to the  delay in processing.  He should just sit tight. 

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