Are Form 843 Overpayment 2011-2023

Do interest and penalties stop while the appeal is pending? Interest and certain penalties will continue to accrue during the appeals process and during any subsequent tax court litigation on any amount remaining unpaid. For this reason, you might want to post up a bond as to the amount in dispute, which will stop the running of interest while you litigate. Interest begins running from the due date of the return at issue. - The IRS has three years from the filing date of the original return to adjust any amount they believe to be due. - A taxpayer can stop the running of interest by simply paying the amount in dispute and suing for a refund. However, this may not be a good idea in most cases because it is even harder to get your money back than to avoid paying it in the first place. - Another option is to put a deposit down for the amount of the dispute. While a deposit stops the running of interest, it does not deny the tax court jurisdiction over your case. - It is important to note that if you make a deposit and later prevail in tax court or during the appeal, you will not be paid interest on the amount of the deposit while the IRS has your money. - Thank you very much for watching this video. If you have any questions or want to determine whether it makes logical sense for you to contest an IRS assessment through the appeals process or by going to tax court, I am more than happy to answer those types of questions. Thank you.