What Should We Do If We Receive a Refund Check from the IRS That We Were Not Expecting?

Answer- Any taxpayer should not deposit a refund check from the IRS unless the taxpayer is expecting a refund and the refund is the amount that was expected. Believe it or not, the IRS makes mistakes! THEIR mistake could end up costing YOU more money than you thought. If the IRS incorrectly returns monies that you wanted to be kept on account (for past or future taxes) and you simply return the check with a letter explaining their error, your payment will be deemed to have been made as of the date of the original payment (before it was refunded in error). However, if you cash the check and then find out later that the money was actually to be applied and you write a new check, the payment is deemed to have been paid as of the date of the new check. This could result in penalties and interest. Often, you will not know that you are underpaid until weeks, if not months, afterward and this can be costly to the Association.