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jingi1234 · Jun 1, 2006, 08:30 AM

Hi ,
I have received a US treasury check stating I over paid the taxes in 2005 and IRS is returning the money.
The problem is the amount of the check I received is close to 50% of the my pay for entire year. I never over paid the taxes.

I did my taxes for 2005 in March 2006 and I got my refunds. I talked to US treasury, IRS and... every one says it is legitimate check and I must deposit in the BANK.

Can some one please suggest me what to do? I don't want to return the money unless they ask me.

Thanks,
Jingi

RickJ · Jun 1, 2006, 08:42 AM

Did they not also send to tell you an explanation of how you overpaid - so you can verify it?

Being that much, I too would be leery of spending it for fear of them coming back to say they made a mistake... so would definitely push for an explanation.

In the meantime I'd definitely put it in the bank to at least draw some interest.

jingi1234 · Jun 1, 2006, 08:45 AM

That is what I was thinking.

I called all over US treasury, forgery, IRS and... I got nothing. I got no letter with this (I got only US treasury check)

I was thinking put in the bank and earn interest (Don't spend!! ) and if IRS comes and asks... give them back...

Sounds good right?

RickJ · Jun 1, 2006, 09:06 AM

Yes, sounds good... but when you got IRS on the phone and asked what/where the error was, what did they say? Was it just "we don't have that infomation"?

If that's the case, don't let it rest at that. Ask them how to go about finding out.

Not being sure what number you called for the IRS, try this one: 1-800-829-1040

Surprisingly, I called in March half thinking I'd never get a human on the line - or wait on hold for hours, but I got a human promptly and they faxed me my tax return within minutes. I was pretty amazed.

... If you don't get an answer, keep pushing: "ok, then who do I talk to to get the answer?"

AtlantaTaxExpert · Jun 4, 2006, 06:15 AM

All advice given is accurate. I have nothing to add.

Fr_Chuck · Jun 4, 2006, 06:41 AM

I would say what I would do in your case, not legal advice, just opiinion,

I would deposit it in a savings account and not spend it for several years just in case. Most obvious it is an error, and most likely they will want the money back, But often not cashing the check can also cause issues if they decide latter you owe the money, you have to prove you did not cash the check, It would be easier to merely write them a check for the money back.

AtlantaTaxExpert · Jun 4, 2006, 08:40 PM

I agree with Fr Chuck. You have made a good faith effort to notify the government that the check was issued in error.

Just save the money and collect the interest.

jingi1234 · Jun 9, 2006, 06:53 AM

Thanks for all the advise. I had deposited the money and put it under high yield saving account.

I wrote a letter to IRS (notarized -> I kept a copy too) notifying the issue. If they come back to me I will simply write the check back.

My only concern is if IRS asks me any interest at their owing rate (around 7%?). I mean if we don't pay taxes before dead line and don't take extension IRS starts charging interest for the money that we owe to IRS.

That is the biggest problem.

Please suggest.

Thanks,
Jingi

RickJ · Jun 9, 2006, 07:01 AM

The IRS does not care much about good faith efforts... that's why I think you should be quite insistent on them showing you where the overpayment error was.

AtlantaTaxExpert · Jun 9, 2006, 10:36 PM

If you made a good faith effort and can prove (which you can with the certified letter) that you tried to notify them of the error, by law they cannot charge you interest if they later decide you need to pay the money back.

Keep trying to get to the bottom of the problem, but do not make it your life's mission.

jingi1234 · Aug 15, 2006, 08:52 AM

Just to let you know guys -- Its been almost 3 months and IRS didn't come back to me with any answer. And the money that I had received is earning interest... so far so good.

Thanks

AtlantaTaxExpert · Aug 15, 2006, 04:21 PM

Just hang loose. The statute of limitations for them asking for the money back is three years.

jingi1234 · Jan 25, 2010, 06:10 PM

Guys... I deposited the check and earned $1400.00 interest in 18 months and they came back asking that money with interest.

Obvisously I told them that I can't give the interest as I made my effort to return this. They took the principle in one check and story ended...

Thanks,
Jingi

ebaines · Jan 26, 2010, 08:38 AM

Thanks for the update!

lucasafoliveira · Jun 27, 2010, 07:44 PM

I have the same problem and I'm kind of confused. That's why I've looking for answers on internet including official websites but I don't know what to do. In my case my accountant did all the forms and sent them. But some weeks later he told me that I was supposed to receive less than the first figure due to a review on my docs. I got the check some days ago with the first amount, I mean, the one which the accountant said is a little over. I don't know if the guy who provided the service doesn't know too much about legal terms or he's right and I really need to return part of the check. I have no idea if government will ask me the money back and if, what's the real or estimated interesting that I need to pay.

AtlantaTaxExpert · Jun 28, 2010, 09:13 AM

The fact that you got a bit more than the original figure is due to the interest paid by the IRS on the refund.

Now, if the refund amount is NOT correct, you need to amend the return using Form 1040X. When you file the amended return and send a check for the difference between the first refund and the correct refund, the IRS will charge you interest (and possibly a penalty) on the difference. You can ask that the penalty be waived, but the interest is required by law.

Unless the IRS waives the interest (which happens sometimes if the interest due in real low), they will bill you for it.

jgault · Jul 3, 2010, 06:32 AM

I also received one of these 'mystery checks'. I am going to deposit to savings and hope to fly under the radar. Considering who's president, this is could be a scam. All you folks that were giddy for 'HOPE & CHANGE', well, I hope you've changed.

jgault · Jul 3, 2010, 06:44 AM

I also received one of these 'mystery checks'. I deposited it in a savings account and will not spend it until that 'hopey changey' guy goes home to gangster land. "I swear that I will never live for the sake of another man nor ask another man to live for mine."
Jgalt

lucasafoliveira · Jul 3, 2010, 08:03 AM

guys, in my case I didn't receive a check which had a "mistery" value like if I had won the lottery. Like I said the accountant did all the forms and sent them. I was supposed to receive X dollars and I got it by check. Then the accountant made a review and said "i'm not sure about it. i think i did something wrong". So that's my question... maybe the check is right because they sent like I was supposed to receive. Maybe the accountant made a mistake. I don't know.

bobbiann · Feb 15, 2013, 05:00 PM

I received a US Treasury check. On the check is states it an over tax refund. It also says San Francisco, CA, I live in Pennsylvania and have never been to CA.

No further explanation was sent. What should I do with this check? I don't want to cash it only to find out I have to send it back. I am unemployed and could use the money, but I want to do the right thing and I want to know whiy they sent it.