Tax refund

Financial Planning Tax Strategies
1

My brother finally got a tax refund from his 2020 return and has several questions about it. (For instance they have mis-calculated he and his wife’s covid monies, and other similar issues.)

I don’t know the exact figures, but this will be close enough. The check is in the amount of $7,000. He thinks it should be $9,000. If he cashes the $7,000 check, does that mean he has “accepted” the IRS figures and can go no further, or can he cash it but continue to dispute their calculations and other errors?

Thanks.

2

As long as he thinks the IRS owes him more money, he can cash the check and continue to dispute the results.

The advice would be different if he owed taxes or received too much of a refund.

Ira

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