After a WTF moment because I have a good CPA and all my payments were made on time, I opened the letter and read something I never expected.

The letter read:
"We changed your 2009 Estimated Tax Total reported on your return. As a result of these changes, you are due a refund if you owe no other taxes."

"You claimed an incorrect amount as Estimated Tax Payment (No. I didn't), payment with extension of time to file (No. I didn't file for an extension), or other payments and credits. If you are due a refund from the Internal Revenue Service, it should arrive within 6 weeks. Any interest due you will be added."

The check came in the mail today. After giving my wife some of the money, I've decided to support SCHIP and buy 3 or 4 boxes of cigars.
[Reply]

Wow...that's a rare occurance with the IRS.
[Reply]

My girlfriend (who did her own taxes) got a similar letter this year telling her she missed something and was due more money. And she got an additional check, too.

Maybe I can convince her to spend a little on some cigars ...
[Reply]

If you didn't make those errors you'd better hope they don't catch up with you or you'll be sending them a few boxes of cigars...:-)...
[Reply]

As much as I hate to rain on your parade, I'd take all the information the IRS sent you and talk to your CPA. See if they can find the mistake as well.

Why?

If the IRS made a mistake, and they discover their mistake, they will come looking for their money. And, you better have it when they ask. If not, you will pay interest to them.

Double-checking is a pain in the posterior, but may save you some problems down the line.

Peace of the Lord be with you.
[Reply]

:-)
Better safe than sorry!
[Reply]

Actually, you will pay interest if you owe, even if they made a mistake. If they think that you should have caught their mistake, the will also assess a penalty.

At the very least, call the 800 customer service number for your area and ask them to verify. This won't mean squat, btw, if you weren't supposed to get it back. Have your CPA verify and also ask your CPA about sending it back if he does not think that he (the CPA) made a mistake.

Several years ago, I received some IRS largess and it appeared that I did make a mistake, having entered a value on the wrong line, which they caught. A later automated audit caught where the number should have been entered and thus correctly judged that I should not have received the largess. Interest but no penalties. The person at the IRS who I talked to said that the best bet was to always return checks you weren't expecting with a letter asking the IRS to recheck their math.
[Reply]

The first thing I did was make a copy of everything and faxed it over to my CPA. They called back and said they are contacting the IRS to figure it out. Right now it looks like "we" (the CPA) missed a tax credit that we were eligible to claim.
[Reply]

NO good deed goes unpunished...I think this is the IRS credo I saw in their office one time.
[Reply]

Hope it works out that way for you. Back in 1984 I got a similar letter and a check. I took the check and used it to help buy a new Buick. Year later the IRS said whoops - we made a mistake and you owe that money plus interest.


Ron
[Reply]

Actually we are putting the money in savings. I figure we'll just leave it there until we're sure it wasn't a mistake. The CPA is verifying the change with the IRS also.
[Reply]

It Really Sucks
[Reply]

:-) Thats great! Get yourself a nice stick or two

aj
[Reply]

Are you sure the amount wasn't for the making work pay credit? Was it $400 or $800?
[Reply]

I NEVER trust the IRS. A few years ago we invested in a tax sheltered investment. I still have the letter from the IRS telling us it was OK. They came back 3 years later and said they wanted $70K. They basically said... we made a mistake and you owe us money!! Don't spend that money unless you can afford to replace it.
[Reply]

Just bypass SCHIP and buy some CC's instead. :-):-):-)
[Reply]

........x2:-)
[Reply]

Got an email from the CPA. It was the make work pay credit. No explanation on why they missed it when they did my taxes though it may have something to do with my being self employed.
[Reply]

It is good to hear that the IRS didn't short change you. Good thing they caught it or you would have been out the money.
[Reply]

That's a lot better than the letters I got from them last year.
:-)
[Reply]