HarryTheSpider

I'm getting nowhere fast (well, slow!) with my tax refund for federal income tax - I'm owed close to $4K.

It seems there is no effective channel I can turn to to resolve this - it's been over 6 months now...

So here's my question:

Can I stop paying witholding tax out of my pay check for a while?

My plan is to stop paying until I've 'not paid' an amount equal to what I'm owed, then restart paying the federal income tax as before.

When it comes to doing the next tax return, if I've not had my refund situation resolved, I do it through the next tax return...

That's the plan - is that legal and possible (I live in AZ)?

(I know, the usual disclaimers accepted regarding tax/legal/financial advice)
Cheers

Harry

sir_eccles

Perhaps call the local office in Phoenix and make an appointment to talk to someone in person.

fatbrit

You can change your withholding any time by completing a new W-4 and submitting it to payroll.

Claim 9 kids and it'll drop to almost nothing if you're on an average salary.

However, if you owe the IRS more than $1k in April (simplified), they'll fine you.

S Folinsky

Talk to an accountant or other tax preparer. I assume you already filed your 2910 1040 return. You don't say when you filed it. You don't say how complicated your return is.

That said, I know that the 1040 return gives the option of crediting your 2010 refund to your 2011 taxes.

Giantaxe

And that's owe on your 2011 return, not owe cumulatively when taking into account your refund due on your 2010 return. Unless you've done as the previous post suggests and asked for your refund to be credited to your 2011 taxes, I would be very careful about significantly changing your withholding.

Mummy in the foothills

Don't they keep sending you those letters giving themselves 30 days or 45 days to process your paperwork?
Mine had a phone number to call on it, some of the other Moms I know who were also waiting for their money called it, they sat on hold forever but eventually did get through to a live person who gave them the info they needed.
It seems just about everyone who claimed the adoption credit and the home buyer credit were sent those letters, plus more.

HarryTheSpider

Thanks everybody for your suggestions.

My tax situation is very simple - no mortgage, no kids, standard deductions, filed jointly with wife, who wasn't working, filed electronically on 16 Feb 2011... earned about $1K less than the threshold, so all taxes I paid are/were due to be refunded. AZ state refunded within 3 weeks.

Have called the IRS using the number given on the oft-repeated letters we've received - very limited info available...

Have filed for help from the IRS advocacy office here in Phoenix - over 1 months ago - heard nothing...

A few others have suggested I talk to an appropriately skilled/informed accountant - I'm just loath to pay somebody a few hundred bucks to get something that is rightfully mine (yes, I know the law probably says the IRS decides who is owed what etc, not me, but really, my tax situation couldn't be much simpler or clearer - why it takes more than 6 months to figure that out is beyond me!)

Cheers

HTS

Rete

This is your first time filing a federal return isn't it? If I am remembering that you just got to the US in late 2010 (without having to go back through your posts), then I need to ask if you filed all the appropriate forms, i.e. physical presence test, attached a note saying you wished to be considered a resident for tax purposes, etc.

If my assumption is correct, being a first time filer might well be what is taking time for them to do your taxes.

BTW I don't know what you mean by threshold so I'm not even going to touch on that.

adrian_reynolds

Don't withhold taxes for 2011 that you will owe at year end as your 2010 refund should not apply to your 2011 tax owed unless you selected that option when filed. If you know no tax will be due for 2011; however, then withhold the max (I think 16 deductions on your W-4) so you don't have this problem next year. And sorry... especially if someone has already answered this with the same response!

Jscl

Have you checked this?

https://sa2.www4.irs.gov/irfof/lang/...fgetstatus.jsp

It's meant to give you when they expect your refund to be processed. If they don't have information they give you a number to ring, but it might be the number you've already tried. I'm waiting for a little bit extra refund I'm due from a 1040-X sent at the end of May, so I know they're very behind on anything that isn't straight forward (and if you're a new resident yours won't be).

I wouldn't change your withholdings as it would just come back to bite you next year.

meauxna

Harry, why don't you try the forums at Intuit (Turbo Tax)? I'd imagine that a tax-focused forum would net you much better information on this topic than an expat group.

Steve_

Are you sure, when did you arrive in the US? If you were only in the US for a partial year last year you should read IRS publication 519. I'm not sure where you're from either, there may be a non-discrimination clause in the tax treaty that may be relevant.

Rete

Ahhh no to everything you wrote.

Your 2010 taxes are filed by April 15 of the next year, in this case 2011. It is based on your income for 2010 and you are to have authorized withholding of x amount of funds from your 2010 paychecks to cover what is estimated to be your taxes for 2010.

What is the withhold the max (I think 16 deduction on your W-4)????????? You mean to say you believe the max dependents you can claim on your W-4 is 16.

Of course you can claim a higher number of dependents and then get hit with the penalty for not withholding enough money. Which do you think is the wisest choice?

HarryTheSpider

Thanks again all.

We arrived 8 Nov 2010, from the UK, both UK citizens.

Tax situation believed simple because we're only making standard deductions etc.

Paid tax from 8 Nov 2010 to 31 Dec 2010 such that total income was below the 'threshold' or allowance for couple filing jointly.

Was given to believe that simply being a new tax payer would not be reason enough to have refund delayed... that it could simply be that we were selected randomly with a few million others to have more detailed checks done...

... fine.... but taking 6 months to do it??!!

Will see what's on TurboTax forums

Cheers

HTS

Jscl

You say six months, but it's only four months since April... did you file very early? Congress enacted some changes to the tax law in December, and certain tax filers (those itemising deductions were some of them) were not allowed to file until late February. If you filed before then I don't know what they did, whether they returned them or stuck them in a pile for later, but it seems a very real possibility yours has been lost somehow, after all this time.

I'd check at the link I last gave (few posts up) and ring the number they give you, if it's different from the one you phoned before. If that doesn't get you anywhere most cities have an actual IRS office where people can go in and get help. I'd find the one nearest to you and pop in in person. It's the best way to get something like this sorted out.

Here's the list of IRS offices in AZ:

http://www.irs.gov/localcontacts/art...=98256,00.html