This week, an unexpected (large) deposit showed up in our joint checking account. It was noted “IRS Refund.”
Background: In 2019, DH became involved in rescuing the family business which had been established by his parents and was eventually run into the ground over years by his sister (DS). The business was a motel which DH and DS sold in 2019.
The business’ CPA tax preparer advised me on capturing the Net Operating Loss (NOL) on the sale of the property. I was able to claim the NOL in 2019 and carry it over to 2020 and 2021. Because of some confusion on my part I had to file amended returns (1040X) in 2019 and 2020.
The money that was deposited into our account this week was the tax refund from the amended 2020 return that was filed in 2021. The amount did not match the amount that I claimed on our amended return.
I used ID.me (which I got a couple of years ago – a stringent process) to get into my IRS account. I was able to download and print the IRS computer’s detailed calculations from 2019 - 2022. The IRS paid interest on the delayed refund, which was why the amounts didn’t match.
I filed the IRS printouts along with my copies of each year’s tax return.
Wendy