Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

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Topic Author
texasgal47
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Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by texasgal47 »

This is strange situation in unknown territory for me. Boglehead help would be much appreciated. This is an unrequested refund. No letter of explanation was in the envelope. The check appears to be probably legitimate. There is a watermark that reads forwards and backwards "U.S. Treasury." The signature line on the back of the check is formed from micro letters that say USA repeatedly the full length of the signature area. I do not have a UV light to check for other verification. The check states $1,064.91 is interest which leaves a $11,901.00 refund. My single filing status has not changed in over 10 years and Turbo Tax is always used to file.

Last night I reviewed my 2018 return. Nothing appears amiss and the return was pretty straight forward. SS # and filing status are listed correctly. I'm a retired senior so income for 2018 is from Social Security, Company retirement funds, distribution of yearly dividends in the taxable account, and a $66,000 conversion to the Roth account. That year 100% of my RMD was donated as a QCD.
Total Income: A little over $130,000
Standard Deduction: $13,600
Taxable Income: A little over $118,000
Taxes Due: A little over $21,000
Taxes Paid: Exact Amt Due

I called the IRS today and they are not taking calls. Of course I'm concerned that a scammer may be involved. My local social security office is open now. I could make an appointment to go down there. Or should I just mail the check to Austin (listed on the Tax Refund line) with a note of explanation as to why the check is being returned, with "VOID written on the signature line on the back of the check?
jebmke
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by jebmke »

A letter of explanation may follow. I'd be inclined to hold the check or deposit it and stash it for now. Have you checked the transcript with the IRS to see if they have adjusted your return?
Don't trust me, look it up. https://www.irs.gov/forms-instructions-and-publications
runninginvestor
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by runninginvestor »

Ditto the recommendation to check your transcript at the Irs website to see if they have differing information than what you filed.
mervinj7
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by mervinj7 »

texasgal47 wrote: Tue Apr 20, 2021 5:26 pm This is strange situation in unknown territory for me. Boglehead help would be much appreciated. This is an unrequested refund. No letter of explanation was in the envelope. The check appears to be probably legitimate. There is a watermark that reads forwards and backwards "U.S. Treasury." The signature line on the back of the check is formed from micro letters that say USA repeatedly the full length of the signature area. I do not have a UV light to check for other verification. The check states $1,064.91 is interest which leaves a $11,901.00 refund. My single filing status has not changed in over 10 years and Turbo Tax is always used to file.

Last night I reviewed my 2018 return. Nothing appears amiss and the return was pretty straight forward. SS # and filing status are listed correctly. I'm a retired senior so income for 2018 is from Social Security, Company retirement funds, distribution of yearly dividends in the taxable account, and a $66,000 conversion to the Roth account. That year 100% of my RMD was donated as a QCD.
Total Income: A little over $130,000
Standard Deduction: $13,600
Taxable Income: A little over $118,000
Taxes Due: A little over $21,000
Taxes Paid: Exact Amt Due

I called the IRS today and they are not taking calls. Of course I'm concerned that a scammer may be involved. My local social security office is open now. I could make an appointment to go down there. Or should I just mail the check to Austin (listed on the Tax Refund line) with a note of explanation as to why the check is being returned, with "VOID written on the signature line on the back of the check?
You can get your transcripts directly from the IRS online. That way, you can see how your data compares with their data.

https://www.irs.gov/individuals/get-transcript
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petercooperjr
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by petercooperjr »

I think often the letter telling you about an adjustment and the refund check are sent separately; so you might first want to wait a week or two (or three) and see if you get a letter explaining everything.

You might also want to check your online account transcript at irs.gov; that might shed some light on what they're seeing differently than you.

There's likely no rush (especially if it's as legitimate as it appears); just hold on to the check until it gets figured out.
SlowMovingInvestor
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by SlowMovingInvestor »

A very common scam it to send someone fake check with an 'overpayment', ask them to deposit it and then ask them to 'refund' the overpayment before the check clears.

But this seems unlikely to fall into that category. I too would do as others suggested and get a transcript and also wait for an IRS explanation letter.
Makefile
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by Makefile »

is it possible you had income tax withheld when doing the roth conversion and forgot about it?
Buddtholomew
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by Buddtholomew »

You are a victim of identity theft; it is illegal to deposit the check. Same thing happened to me and many others after filing taxes using TurboTax in 2018.
"The first principle is that you must not fool yourself and you are the easiest person to fool" --Feynman.
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anon_investor
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by anon_investor »

Buddtholomew wrote: Tue Apr 20, 2021 6:36 pm You are a victim of identity theft; it is illegal to deposit the check. Same thing happened to me and many others after filing taxes using TurboTax in 2018.
What happened with TurboTax in 2018?
dukeblue219
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by dukeblue219 »

Buddtholomew wrote: Tue Apr 20, 2021 6:36 pm You are a victim of identity theft; it is illegal to deposit the check. Same thing happened to me and many others after filing taxes using TurboTax in 2018.
While possible, this is not a certainty by any means. There are many times people are surprised at refunds received due to mistakes made in their returns, forgotten or duplicated estimated tax payments, etc.

Surely its not illegal (I am not a lawyer) to deposit a check received in your name. You have no reason to believe it is fraudulent yet. Personally I'd just hold onto it until it gets straightened out, though. But in the event it IS real, having it reissued will be a pain if you mailed it back to the IRS.
makingmistakes
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by makingmistakes »

Buddtholomew wrote: Tue Apr 20, 2021 6:36 pm You are a victim of identity theft; it is illegal to deposit the check. Same thing happened to me and many others after filing taxes using TurboTax in 2018.
If you know this for a fact, can you not provide some more information? How would someone stealing his identity result in him getting a large refund check?
Buddtholomew
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by Buddtholomew »

dukeblue219 wrote: Tue Apr 20, 2021 6:41 pm
Buddtholomew wrote: Tue Apr 20, 2021 6:36 pm You are a victim of identity theft; it is illegal to deposit the check. Same thing happened to me and many others after filing taxes using TurboTax in 2018.
While possible, this is not a certainty by any means. There are many times people are surprised at refunds received due to mistakes made in their returns, forgotten or duplicated estimated tax payments, etc.

Surely its not illegal (I am not a lawyer) to deposit a check received in your name. You have no reason to believe it is fraudulent yet. Personally I'd just hold onto it until it gets straightened out, though. But in the event it IS real, having it reissued will be a pain if you mailed it back to the IRS.
Not a certainty but very, very, very likely.
I too owed money that year and received a 10K+ check from IRS in the mail.
At a minimum I would notify the IRS and request a PIN to file for subsequent years.
Up to you to freeze credit as well.

In my personal case I tried to file a return and was notified by TT that someone else had already filed a return under my social for that year. It was a TT vulnerability that impacted hundreds of thousands of people.
"The first principle is that you must not fool yourself and you are the easiest person to fool" --Feynman.
dukeblue219
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by dukeblue219 »

What's the identity theft angle here? It's not very effective tax refund fraud since OP got the money. Is it someone working under a false SSN? Seemingly that person's income and withholdings would both be added, and a huge additional refund would be unlikely. If OP hadn't filed a return I could see the fake tax return, but the IRS would have caught the duplicates, right?
MarkNYC
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by MarkNYC »

When did you file your 2018 tax return?
SlowMovingInvestor
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by SlowMovingInvestor »

I have a vague memory of someone submitting a fake return under my name too a few years back although it had nothing to do with TT, since I hadn't filed yet and use desktop Turbo Tax. I submitted later. The IRS caught the fake but held up my refund too.

Eventually I called them for the refund and a very helpful person on the phone (really) verified my id and released the refund to me.

But a 2018 refund this late is odd in any case.
Topic Author
texasgal47
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by texasgal47 »

2018 tax return was e-filed 4/15/2019 and the $624.00 still due was paid by electronic deposit at time of filing.
Topic Author
texasgal47
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by texasgal47 »

I also need to review check carbons from that period to R/O a possible large estimated tax payment that was forgotten when filing.
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scorcher31
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by scorcher31 »

Is there any phone number listed in the check? If so double check that's its the real number and not a scam number. Still this doesn't really sound like a coherent scam to me. I definitely wouldn't cash the check quite yet either though. I would hold onto it and try to get in touch with someone from irs while giving it another week or so for a letter to show up. My goal for next month or 2 would be figuring out why you got the money as otherwise you may get stuck returning it.
dukeblue219
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by dukeblue219 »

texasgal47 wrote: Tue Apr 20, 2021 7:28 pm I also need to review check carbons from that period to R/O a possible large estimated tax payment that was forgotten when filing.
Pull your IRS transcripts. That'll tell you for sure.
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8foot7
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by 8foot7 »

texasgal47 wrote: Tue Apr 20, 2021 7:28 pm I also need to review check carbons from that period to R/O a possible large estimated tax payment that was forgotten when filing.
I think I would like to be you if you are able to forget that you made an $11,000 estimated tax payment.
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HueyLD
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by HueyLD »

Texasgal,

Did you donate about $30,000 to charities using QCD withdrawal from your IRAs? Did you by any chance report the $30k as income in error?
inverter
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by inverter »

As others have said, pull your IRS transcript. You're speculating about this until you either receive a letter of explanation or view your transcript, which will show all of your account adjustments.
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mrspock
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by mrspock »

SlowMovingInvestor wrote: Tue Apr 20, 2021 6:31 pm A very common scam it to send someone fake check with an 'overpayment', ask them to deposit it and then ask them to 'refund' the overpayment before the check clears.

But this seems unlikely to fall into that category. I too would do as others suggested and get a transcript and also wait for an IRS explanation letter.
This. Check to see if somebody didn’t amend your return without your knowledge.
Topic Author
texasgal47
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by texasgal47 »

No, the 1040 clearly shows QCD in the taxable amount. TT shows the $66,000 Roth conversion as the only taxed IRA amount on worksheets.

I see that I paid TT for MAX Defend and Restore that year. Expiration Date is 09/2023. Will give them a call after reviewing my IRS account.
Topic Author
texasgal47
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by texasgal47 »

IRS website states that if refund is in error, return check within 21 days to avoid a late penalty.
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HueyLD
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by HueyLD »

texasgal47 wrote: Tue Apr 20, 2021 8:06 pm No, the 1040 clearly shows QCD in the taxable amount.
The amount of QCD should not be included as taxable income!
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by jebmke »

HueyLD wrote: Tue Apr 20, 2021 7:54 pm Texasgal,

Did you donate about $30,000 to charities using QCD withdrawal from your IRAs? Did you by any chance report the $30k as income in error?
I'm not sure the IRS would be able to pick up something like this. I am not aware that custodian's report QCDs to them.
Don't trust me, look it up. https://www.irs.gov/forms-instructions-and-publications
Goal33
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by Goal33 »

You got the correct advice to pull a transcript. Let us know what you find out.
trueblueky
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by trueblueky »

In 2015, a couple came to our VITA site with a large unexpected refund, maybe $4000, from a few years earlier. I questioned them. They generally didn't need to file, but had filed that year for some reason I don't remember.

I called the IRS Fraud line for help. They said that someone had filed under the couple's SSN as part of a tax fraud gang in Tampa a few years before. The IRS sent a check to the fraudsters, who had closed their rented P.O.Box before it came. The check returned to the IRS, which waited. When the couple filed, the IRS said "ha, we know where they are" and sent the check.

They had to return the check along with some form that I completed for them.

It could be something like that.
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Bogle7
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by Bogle7 »

Wine.
Old fart who does three index stock funds, baby.
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by DebiT »

HueyLD wrote: Tue Apr 20, 2021 8:08 pm
texasgal47 wrote: Tue Apr 20, 2021 8:06 pm No, the 1040 clearly shows QCD in the taxable amount.
The amount of QCD should not be included as taxable income!
So is this the likely explanation? Sounds like the transcript will show the QCD was incorrectly entered as taxable income.

Interesting thread.
Age 66, life turned upside down 3/2/19, thanking God for what I've learned from this group. AA 40/60 for now, possibly changing at age 70.
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anon_investor
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by anon_investor »

Pulling for the OP that the refund check was recieved due to QCD issue and not due to someone's attempted fradulent activity.

Since the OP will need to create an IRS account to access the tax transcript online, the OP may want to look into obtaining an IRS Identity Protection PIN, which is easy if someone already has an IRS account.
dukeblue219
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by dukeblue219 »

texasgal47 wrote: Tue Apr 20, 2021 8:06 pm I see that I paid TT for MAX Defend and Restore that year. Expiration Date is 09/2023. Will give them a call after reviewing my IRS account.
By all means give them a call, but I'm not sure you're going to get much help. You're not being audited here, after all.
kxl19
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by kxl19 »

Late last year, I also received a large IRS refund check for 2018 taxes, with interest.

Turns out that I had made an estimated tax payment and forgot about it when I filed. IRS must have caught the extra payment, and refunded it back to me.

I did call the IRS taxpayer line, and while the wait was long, they were helpful in figuring out the issue was due to my estimated tax payment.
Topic Author
texasgal47
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by texasgal47 »

You guys are barking up the wrong tree. The QCD was not included in the income. Form 1099-R Summary worksheet clearly shows the Qualified charitable distribution substracted out of the 1099-R Distributions, leaving only the Roth conversion as the 1099-R taxable amount. I have added up the taxable amounts again today, and the $130,000 does not include the RMD. With the RMD, the gross taxable amount would be around $167,000.

This evening, the IRS would not recognize my cell phone number when I tried to set up an account to access my tax information. I should receive a code by mail from them in 7 to 10 business days. To be continued. . . :confused
travelnut11
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by travelnut11 »

I had something similar happen to me though on a much less grand scale. IRS sent me a refund of $750 which of course I thought could be a scam but I just waited patiently and the explanation came about a week later. Apparently there was an IRS printing mistake on an obscure form I used when I sold a rental property so they recalculated and sent me a refund.

So you're probably in for a wait either way for the explanation or PIN. Let us know how it turns out.
Last edited by travelnut11 on Tue Apr 20, 2021 10:06 pm, edited 1 time in total.
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MarkNYC
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by MarkNYC »

kxl19 wrote: Tue Apr 20, 2021 9:20 pm Late last year, I also received a large IRS refund check for 2018 taxes, with interest.

Turns out that I had made an estimated tax payment and forgot about it when I filed. IRS must have caught the extra payment, and refunded it back to me.
Understating the amount of estimated taxes paid on the tax return is the most common reason for an unexpected IRS refund, so before looking elsewhere a taxpayer receiving an unexpected refund should first verify that all estimated taxes (and w/h) paid for the year are properly reflected on the tax return, including any overpayment applied from the prior year.
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texasgal47
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by texasgal47 »

MarkNYC, that makes sense. I'll continue to review while waiting to hear from the IRS.
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by shess »

For all the talk about scams ... I'm hard-pressed to think of a way that depositing the check and then simply not spending it would work out worse than sitting on an uncashed check. I mean, yeah, maybe there was a mistake and they'll later send you a demand to pay them $13k. But, personally, I'd rather have a record of a payment to me for $13k, and a later payment from me to the IRS for $13k, because both of those events happen millions of times a year, so I know they know that they and I know how to handle them correctly. Versus sending them a check they sent to me, I don't even know what the mechanics of that are - just put it in an envelope and assume that the person at the other end knows what to do with it? Write a cover letter and hope they get my point? I mean, it's not like I'm talking to their accountant or something.

If it is a scam ... how does sitting on the check resolve the issue? The IRS could send you a note demanding money at any given time, you still need to validate the request regardless of what you do with the check in hand. But I think sending valid $13k "overpayment scam" checks is quite a reach.
jebmke
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by jebmke »

MarkNYC wrote: Tue Apr 20, 2021 9:46 pm Understating the amount of estimated taxes paid on the tax return is the most common reason for an unexpected IRS refund, so before looking elsewhere a taxpayer receiving an unexpected refund should first verify that all estimated taxes (and w/h) paid for the year are properly reflected on the tax return, including any overpayment applied from the prior year.
In my experience, this gets reconciled and refunded quite quickly though. Last year I forgot to include some ES taxes when I filed in June and it was refunded to me in late August.
Don't trust me, look it up. https://www.irs.gov/forms-instructions-and-publications
atwood
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by atwood »

This thread gave me a scare since I too had received an unexpected IRS refund check. As suggested above, I checked my transcripts and the refund was recorded there in black and white.
MarkNYC
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by MarkNYC »

jebmke wrote: Wed Apr 21, 2021 6:17 am
MarkNYC wrote: Tue Apr 20, 2021 9:46 pm Understating the amount of estimated taxes paid on the tax return is the most common reason for an unexpected IRS refund, so before looking elsewhere a taxpayer receiving an unexpected refund should first verify that all estimated taxes (and w/h) paid for the year are properly reflected on the tax return, including any overpayment applied from the prior year.
In my experience, this gets reconciled and refunded quite quickly though. Last year I forgot to include some ES taxes when I filed in June and it was refunded to me in late August.
I agree. Normally the IRS would issue this type of refund about 8 weeks after filing. But poster kxl19 stated above that he received this type of overpayment refund late last year for his 2018 taxes, which would be 12 - 18 months after filing, so I think it remains a possibility for the OP and is the first thing that should be checked. In the OP's case, the unexpected refund is 2 years after filing, which seems odd regardless of the reason.
Last edited by MarkNYC on Wed Apr 21, 2021 8:20 am, edited 1 time in total.
jebmke
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by jebmke »

The roundness of the number does stand out. I've also seen cases where someone made ES payments for the wrong year. Sent in money thinking it was for 2019 but put 2018 on the slip. Long shot inasmuch as this would have triggered a large amount due for 2019 - assuming it has been processed.
Don't trust me, look it up. https://www.irs.gov/forms-instructions-and-publications
Buddtholomew
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by Buddtholomew »

Guaranteed fraud.
Willing to wager identity fraud as a result of TT.
I speak from first-hand experience and you are not alone.
Good luck.
"The first principle is that you must not fool yourself and you are the easiest person to fool" --Feynman.
MarkNYC
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by MarkNYC »

Buddtholomew wrote: Wed Apr 21, 2021 8:35 am Guaranteed fraud.
Willing to wager identity fraud as a result of TT.
I speak from first-hand experience and you are not alone.
Good luck.
Anything is possible, but two things make me think identity fraud is unlikely:

1. After the tax return is filed in April 2019, why would the IRS later on accept and process a 2nd (fraudulent) tax return using the taxpayer's SSN?
2. On a fraudulent tax return, why would the thief use the taxpayer's actual address for the mailing of the fraudulent refund?
mervinj7
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by mervinj7 »

texasgal47 wrote: Tue Apr 20, 2021 11:36 pm MarkNYC, that makes sense. I'll continue to review while waiting to hear from the IRS.
Why wait? I believe multiple people have suggested requesting an online transcript. Here's the link one more time
https://www.irs.gov/individuals/get-transcript
ivk5
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by ivk5 »

mervinj7 wrote: Wed Apr 21, 2021 9:04 am
texasgal47 wrote: Tue Apr 20, 2021 11:36 pm MarkNYC, that makes sense. I'll continue to review while waiting to hear from the IRS.
Why wait? I believe multiple people have suggested requesting an online transcript. Here's the link one more time
https://www.irs.gov/individuals/get-transcript
texasgal47 wrote: Tue Apr 20, 2021 9:22 pm This evening, the IRS would not recognize my cell phone number when I tried to set up an account to access my tax information. I should receive a code by mail from them in 7 to 10 business days. To be continued. . . :confused
mervinj7
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Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by mervinj7 »

ivk5 wrote: Wed Apr 21, 2021 9:18 am
mervinj7 wrote: Wed Apr 21, 2021 9:04 am
texasgal47 wrote: Tue Apr 20, 2021 11:36 pm MarkNYC, that makes sense. I'll continue to review while waiting to hear from the IRS.
Why wait? I believe multiple people have suggested requesting an online transcript. Here's the link one more time
https://www.irs.gov/individuals/get-transcript
texasgal47 wrote: Tue Apr 20, 2021 9:22 pm This evening, the IRS would not recognize my cell phone number when I tried to set up an account to access my tax information. I should receive a code by mail from them in 7 to 10 business days. To be continued. . . :confused
Got it. I forget that not everyone downloads their transcripts each year.
Enkidu
Posts: 211
Joined: Mon Jun 02, 2014 8:48 am

Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by Enkidu »

I had a similar unexpected refund for my 2019 return. It took about a week to get the security token to establish an IRS account by mail. After examining the transcript I found that no adjustment was made. However a payment for the refund amount was credited to my account in September 2020. Looked at my bank records and determined that I did not make the payment. I concluded that the refund was issued in error and that I should return it.

I wrote about this in this thread viewtopic.php?f=11&t=342853

I received good advice about how to return an "erroneous refund", which I followed. The IRS received the returned check on March 24th, but as of today my account has not been updated.
milktoast
Posts: 626
Joined: Wed Jul 10, 2019 8:17 pm

Re: Received a "surprise" $13,000 IRS refund check on 2018 taxes. Please advise.

Post by milktoast »

shess wrote: Wed Apr 21, 2021 12:46 am I'm hard-pressed to think of a way that depositing the check and then simply not spending it would work out worse than sitting on an uncashed check.
Well a long long time ago when I was in college I received a check from the IRS.

Soon after I received a letter explaining I had made an error in reporting income from our family trust. I wrote back and explained that in fact my returns were correct and the IRS had made an error. A few months later they wrote that in fact I was wrong and was owed a refund.

Cashed the check.

Fast forward three years. I received a letter from the IRS indicating that I had made an error on my amended return and owed the amount of the original check (to the penny) plus penalty and interest.

Several letters later, I paid back the original check plus penalty and interest.
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