Login with your favorite social network:

[Romeo]

I efiled and asked for direct deposit. The state refund has already deposited. The IRS website said that they would mail my fed return on Feb 27th, 2009. Today, we got a letter saying "we had to do some additional processing on your return" you should get it in 3 weeks.I am certain we will be audited and am fine with that, as we have the police report and lawsuit. however, I am wondering if they can keep our fed refund until the audit is complete.Anyone know?

[sheridan93]

Yes, they can and probably will. In fact they definitely will keep the fed refund until the audit is complete. And as far as I am aware, there is nothing you can do about it as they are within their rights to do so. This protects you as well as the IRS. If the IRS overpays because you made a mistake and filed incorrectly, you may be liable to pay a 20% surcharge as well as paying back the excess. It does not matter if you deliberately or accidently overstated the amount that shoud be refunded, the 20% can still be levied. BUT only if you have received payment from the IRS. No payment, no fine.

[Selyv]

TurboB said: 2 Yep. Sadly, the IRS can do whatever they want to. 59 months ago