Saturday, June 7, 2008

Tax Tip of the Week

Haven't received your Tax Stimulus check yet? Tired of looking in the mail day after day for a check that never comes? Here is one thing to take into consideration.

Do you currently owe money to the IRS for an unpaid tax debt?

If the answer to that question is "YES" then you will not be receiving your check. Your check, just like any refund check from subsequent tax years, will be automatically applied to the tax debt on your behalf. Typically, if there is several years of tax debt owed the money from your stimulus check and tax refund checks will be applied to the oldest year for which a debt is owed. Thus making sure the IRS maximizes the time it is allowed by law to collect the tax debt. So if you owe any money to the IRS the bad news is you won't receive a stimulus check or refund check until the debt is paid in full or the time the IRS is allowed to collect that debt has expired. The good news is you now owe less to the IRS than you did a month ago.

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