jklcpa Posted April 9, 2011 Report Share Posted April 9, 2011 Taxpayer has an installment agreement from 2008 with a remaining balance of $7,000. The overpayment for 2010 is $2,900. The return efiled successfully, but the ack is not showing a debt code. Any reason why the debt code wouldn't be indicated? The taxpayer wasn't unhappy about the overpayment going toward the prior year's balance. Quote Link to comment Share on other sites More sharing options...
JohnH Posted April 9, 2011 Report Share Posted April 9, 2011 I can't see where it matters very much. If he gets the refund he can just be thankful it happened. But if he's unhappy when he receives the refund, he's free to write a check to IRS to apply to the balance. In the end, it's the same net result (other than a week or two of interest+FTP penalty - about $25 on a $7K balance at current rates). Of course, it's always possible that the system will catch it before he actually gets the money. Quote Link to comment Share on other sites More sharing options...
cathyan Posted April 9, 2011 Report Share Posted April 9, 2011 They aren't doing the debt indicator any more, so he will most likely get a letter saying the refund has been applied to his outstanding debt. Even with a payment plan, they usually do that. Quote Link to comment Share on other sites More sharing options...
Don in Upstate NY Posted April 9, 2011 Report Share Posted April 9, 2011 ... The return efiled successfully, but the ack is not showing a debt code. Any reason why the debt code wouldn't be indicated? ... Maybe because the debt code was eliminated for this tax filing year. :rolleyes: Quote Link to comment Share on other sites More sharing options...
jklcpa Posted April 9, 2011 Author Report Share Posted April 9, 2011 I didn't realize the debt code indicator was gone, proof that the battery in my brain has died. I have a POA and receive each month's statement but was just curious about the ack. I never took notice of that code until this since I never got involved with RALs or any bank products, and have only had a couple of installment agreements where a refund like this was involved. Thanks for your responses. Quote Link to comment Share on other sites More sharing options...
MN2V Posted April 10, 2011 Report Share Posted April 10, 2011 I didn't realize the debt code indicator was gone, proof that the battery in my brain has died. I have a POA and receive each month's statement but was just curious about the ack. I never took notice of that code until this since I never got involved with RALs or any bank products, and have only had a couple of installment agreements where a refund like this was involved. Thanks for your responses. Check "Where's My Refund" on IRS website. They give a good explanation indicating where the refund may be going. Quote Link to comment Share on other sites More sharing options...
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