You mean there is ambiguity in what the governement does?
Does frozen mean that they take it? Thank you--I'll write them.
After I sent this question, I learned of another issue. The 2005 return (originally extended to 10/31/06) was filed on 12/31/07. The refund due ($4978) was applied to the 2006 taxes. We filed an amendment to the 2005 return based on the amended return we filed for 2004. By looking at the account transcript for 2005, we learned that the IRS had not credited us for 2 of the estimated
returns I filed with payments of 12K total. This had been claimed on the 2005 return (and applied to 2006) and the 2005 amended. When we called the IRS, they found the payments on the 2005 ledger for my husband which never made it the 2005 account transcript. We file jointly, but I guess the 2 ledgers are not linked, which seems odd. The agent moved the 2 estimated payments to the 2005 account transcript and I will be paid for that along with the rest of my refund. (When we filed the amended returns for 2004 and 2005, we chose not to apply the refunds to 2006 and 2007 to keep it cleaner.) So, there was still an amount of $4978 still due to us from 2005, which we couldn't find on the 2005 account transcript. We found that the 2004 account transcipt indicated that this $4978 would be moved to 2005 account transcript, but the IRS never took that step. It was put on my husband's ledger for that year, and again because his account and mine are not linked, it never made it to the 2005 account transcript. This time when we spoke with the IRS, the agent said that they can't pay us that amount, and we have to file Form
843. I must admit that I don't have much faith in that approach, given the errors and mixed messages we have gotten from the IRS (I am still chasing a payment for $8000 I made, which they keyed in as $800; bank caught mistake, withdrew the remaining $7200 to pay the IRS. Four years later I learn that the IRS was notified by the bank, but they never went back for it, and I have had $7200 sitting in Chase Manhattan for 4 years. No one ever notified me. The only way I discovered it is by missing it on the account transcript and researching what happened.) I think it is odd that one agent moved those estimateds with no issues and authorized that a check be generated and that another refused to provide a refund for a mistake that was clearly made by the IRS. Sorry to go on so long, but it gets pretty detailed. BotXXXXX XXXXXne, what approach would you take with the IRS? Call the IRS back, not ask for a $4598 refund, but ask for the $4598 to be applied to the 2005 account transcript as the 2004 transcript indicated, and then when they generate a check for payment it will hopefully include the additional $4598?
Guess this turned out to be pretty complicated so I may owe you more money.
BTW I got so behind on these returns is because I hired an accountant to review the 3, 4, and 5 returns I had completed. He charged me an arm and a leg up front, took 6 months to finish, and they were full of clear errors. He never completed the State returns. After we moved to NC, I met with H&R block in early 2008 to review the returns I had filed and correct them if necessary. The associate left his position with them unfinished on 4/15. Then they misplaced the raw data and returns for almost a year. I would love a flat tax