January 18, 2022

What you need to know about the dispute deadline?

Americans who have filed for a stimulus check on their tax returns may be required to refund part or all of the payment, and many face the end of a 60-day period to dispute the refund if they believe they qualify for the refund. money.

Most Americans received incentive checks in the mail or directly into their bank account, but others claimed the Recovery Rebate Credit on their tax returns. A department of the IRS reviews all returns claiming the Recovery Rebate Credit to verify the accuracy of the claims and has found “mathematical errors” in more than 7 million returns.

Natalie Bonelli told Boston’s WCVB that she had received a letter from the IRS informing her that she must repay a $600 stimulus payment that she claimed upon her return, plus just over $3 in interest. She received the first payment of $1,200 but told WCVB that she never received the payment of $600 because she had moved.

The IRS encouraged those who did not receive the first or second stimulus payment to claim the money on their 2020 tax returns, which Bonelli said she did. While she believes she is entitled to the $600 payment, she told WCVB that she was struggling to resolve the issue and had been unable to contact anyone at the IRS at the time.

stimulus check deadline
Some Americans are told to refund some or all of the money they claimed for stimulus checks upon their return and they have only 60 days to contest the assessment. This photo illustration shows twenty and five dollar bills on August 29, 2017 in San Anselmo, California.
Justin Sullivan/Getty Images

According to the Taxpayer Advocate Service, an office within the IRS, taxpayers have 60 days from the time the IRS sends a billing error notice to request a tax credit reduction. If a person received their letter in August, they will come on the 60th day to make a request. Once a request is made, the IRS must reduce the rating and reassess the tax.

“While this authority can be a useful tool for the IRS if used appropriately, it poses risks to taxpayers, namely missing out on the opportunity to challenge the assessment in U.S. tax courts if taxpayers do not object in a timely manner. against the assessment,” said the taxpayer. Advocate Service wrote in a blog.

After the 60-day period is up, the Taxpayer Advocate Service noted that the calculation error assessment is “final.” The only option available to taxpayers at the time is to pay the taxes and file a lawsuit in the US District Court or the Court of Federal Claims.

The Taxpayer Advocate Service countered that the IRS didn’t always make it perfectly clear in their letters about what was being changed and why and how important it is to stick to the 60-day deadline. This filing season, the Taxpayer Advocate Service said more than 5 million math error reports had been issued omitting language over the reduction deadline.

To make sure people were aware of the deadline, the IRS sent additional notices about their option to contest the tax and gave them an additional 60 days to respond, according to the Taxpayer Advocate Service. To request that the assessment be reduced, taxpayers can call the IRS at 800-829-0922 and are encouraged to have additional documentation or information to justify why the assessment should be reversed.

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