Did the IRS do the right thing?

2015-08-14T12:30:01-04:00

When I filed my 2014 taxes (earlier this year) Pam Schubert noticed that we forgot to include our mortgage interest in our deductions for 2013. So we filed an amended return for 2013 which amounted to a little over $1,000 in our favor! Nice - I know. The process was smooth, albeit time consuming, but when we got the refund, the IRS included "interest" on the money as a result of them having it for so long. At the time, I thought this was also "nice" - but the more I thought about it, the more I thought it was a waste of YOUR money! Why should YOU have to pay for MY mistake? And who gave the IRS permission to give out YOUR money like that? Was this the right thing for the IRS to do? Why or why not?

Response by SCPO David Lockwood made Aug 14 at 2015 12:37 PM

2015-08-14T12:37:29-04:00

How much of our money does the government give away to countries that hate us? Take it and you're welcome. I have no problem with my money going to an American especially a brother in arms!

Response by Capt Seid Waddell made Aug 14 at 2015 1:01 PM

2015-08-14T13:01:03-04:00

If you are late with payments (even if from a similar mistake) they charge YOU interest. Seems like it is only fair for them to pay interest when the roles are reversed.

Response by LCpl Mark Lefler made Aug 14 at 2015 1:02 PM

2015-08-14T13:02:42-04:00

its not like they charge us extra for your interest payment.

Response by SSgt Private RallyPoint Member made Aug 14 at 2015 1:24 PM

2015-08-14T13:24:52-04:00

With the billions and billions of dollars that are wasted on things that are thrown out, never used, or given to other countries that hate us just for the hell of it; I am happy to see them giving a few extra bucks to a fellow service member. Congrats.

Response by Capt Private RallyPoint Member made Aug 14 at 2015 1:49 PM

2015-08-14T13:49:18-04:00

I suspect the payment of interest is offset by the interest people pay to the IRS for being late or having mistakes caught.

Response by 1LT Brian Yang made Aug 14 at 2015 2:24 PM

2015-08-14T14:24:42-04:00

Chief, I say just take it. Think about it this way, your tax return was federal income tax THEY withheld from your income without interest or any adjustment for inflation. Personally, I adjust my withholding to get as little back as possible on my tax return. That's more money in my pocket to earn interest. I don't need the IRS keeping my own money for a year without interest.

Response by Sgt Aaron Kennedy, MS made Aug 14 at 2015 9:04 PM

2015-08-14T21:04:53-04:00

CMSgt Mark Schubert Remember, that Interest was on YOUR (the Individual) money, not OUR (the People) money. The US Government has possession of YOUR money the entire time. It does indeed invest it. It does charge other people interest, and fines, etc. It in essence acts like a Bank. YOU are absolutely entitled to that Interest, because if the situation were reversed, you would owe an equal if not greater amount. The fact that the mistake was your fault really doesn't matter.

Response by MAJ Ken Landgren made Aug 15 at 2015 4:34 PM

2015-08-15T16:34:32-04:00

Don't sweat it. Many folks are paying interest to the IRS.

Response by MAJ Ken Landgren made Feb 27 at 2019 5:09 PM

2019-02-27T17:09:09-05:00

Don't sweat it. Treat is as a loan IRS paid back to you.