0
0
0
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?
Posted in these groups: 
Tax Preparer
IRS
Tax Preparer IRS
Posted >1 y ago
Responses: 7
3
3
0
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!
(3)
(0)
CMSgt Mark Schubert
LOL. Well, let me give you my address and you can send me some more! LOL!
I didn't want to try to side track the scope of this with all other areas of government waste - strictly keeping it to the specific idea of adding interest to back payments which are created by the taxpayer. My action - my fault.
I didn't want to try to side track the scope of this with all other areas of government waste - strictly keeping it to the specific idea of adding interest to back payments which are created by the taxpayer. My action - my fault.
(0)
(0)
2
2
0
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.
(2)
(0)
CMSgt Mark Schubert
LOL - agreed - but at the same time, waste is waste - the amount doesn't matter.
(1)
(0)
SSgt (Join to see)
True, but like I said, just happy to see a fellow service member benefit from it this time.
(1)
(0)
2
2
0
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.
(2)
(0)
CMSgt Mark Schubert
that's the question - when it's your fault, I agree you should have to pay interest (and a penalty) - but this is NOT the IRS's fault (and there is really nothing they could do about this specific case) Why should they have to pay interest when the roles are not really reversed - it's "my" fault in both cases and one is a debt the other is a credit - two completely different scenarios.
(0)
(0)
Capt Seid Waddell
CMSgt Mark Schubert, I think it is a matter of one party having the other party's cash longer than they should have, so they pay interest. It is not a matter of who made the mistake that caused the imbalance..
(1)
(0)
1
1
0
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.
(1)
(0)
1
1
0
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.
(1)
(0)
CMSgt Mark Schubert
Totally on board with that! Thanks! I do the same and have been required to "pay" for years - and I'm OK with that! No reason to let them have more than they want!
(0)
(0)
1
1
0
I suspect the payment of interest is offset by the interest people pay to the IRS for being late or having mistakes caught.
(1)
(0)
Capt (Join to see)
Well, it seems to me that anytime one party has the cash that rightfully belongs to another party interest is paid. If I have theirs I pay, If they have mine they pay. It is pretty universal.
(0)
(0)
Capt (Join to see)
I was audited once. All went well except that I had claimed uniforms for my daughter. But, since she was a student and not yet employed that was not allowed (she had to have the uniforms to complete her classes in a hospital setting)
I paid interest on what was owed.
I do not know if the IRS collects more interest or pays more interest. But, if it turns out to be even it would be a wash and no tax payer money would be involved.
I know stupid argument.
I paid interest on what was owed.
I do not know if the IRS collects more interest or pays more interest. But, if it turns out to be even it would be a wash and no tax payer money would be involved.
I know stupid argument.
(1)
(0)
Capt (Join to see)
As a side note the year I got notified of the audit I was in Iowa. I scheduled the meeting and then was transferred to Minnesota. So I cancelled and scheduled the meeting in Minnesota. But, before it occurred I was transferred to Pennsylvania. Same scenario. The auditor did comment that they had begun to think I was dodging them.
(1)
(0)
1
1
0
CMSgt Mark Schubert
they do - you just don't see it. Not sure of the amount, but that's not the point really - it DOES come from taxpayer money (unless you are not paying taxes... :-)
(0)
(0)
Read This Next
Continue with Facebook 
Continue with Google