topic Should I pay my balance while waiting for 1040x? Will the IRS refund it after the 1040x is filed? in After you file

Should I pay my balance while waiting for 1040x? Will the IRS refund it after the 1040x is filed?

meegangif — Wed, 03 Mar 2021 14:42:36 GMT

I messed up reporting my scholarship on my 2019 tax return so the "wheres my refund?" says I owe 400 dollars when I should get a tax return. I filed my 1040x in August to amend this. Since it is taking so long to process 1040x, I keep having to call to get payment extensions because they keep sending me notices that I owe the money when I don't.

If I don't keep calling about payment extensions, will they do anything like send it to collections? Should I just pay and then have them refund it once the 1040x is processed? Or should I just keep calling about payment extensions?

Re: Should I pay my balance while waiting for 1040x? Will the IRS refund it after the 1040x is fi...

KathrynG3 — Wed, 03 Mar 2021 15:38:13 GMT

Yes, if you do not want to pay the balance because the calculation is in error, continue calling about payment extensions in order to avoid further action.

It would be best to resolve the situation over the phone with the IRS, if possible. They can be contacted Monday through Friday 7 am - 7 pm at 1-800-829-1040.

It may be useful to contact the IRS Taxpayer Advocate Service for further support.

For more information about taxability of scholarships, see: Are my scholarships, fellowships, or grants taxable?

Re: Should I pay my balance while waiting for 1040x? Will the IRS refund it after the 1040x is fi...

meegangif — Wed, 03 Mar 2021 15:49:55 GMT

Thank you, I'm trying to get an extension but the IRS keeps disconnecting me, I will keep trying though. Worst case scenario I think I'll pay and have them refund it.

Re: Should I pay my balance while waiting for 1040x? Will the IRS refund it after the 1040x is fi...

meegangif — Wed, 03 Mar 2021 16:19:44 GMT

So I got on the line with someone and she said they can't do anymore extensions (I've had 2 extensions for 120 days each) but if my 1040x is correct then my charges should be wiped and I won't have to worry about paying it. She said that if I get a "final notice" before it gets sent to collections then I should pay it and wait for it to get refunded. But she said I have about 3 more notices left until then.