Nixon Peabody LLP

  • People
  • Capabilities
  • Insights
  • About

Trending Topics

    • People
    • Capabilities
    • Insights
    • About
    • Locations
    • Events
    • Careers
    • Alumni

    Practices

    View All

    • Affordable Housing
    • Community Development Finance
    • Corporate & Finance
    • Cybersecurity & Privacy
    • Environmental
    • Franchising & Distribution
    • Government Investigations & White Collar Defense
    • Healthcare
    • Intellectual Property
    • International Services
    • Labor & Employment
    • Litigation
    • Private Wealth & Advisory
    • Project Finance
    • Public Finance
    • Real Estate
    • Regulatory & Government Relations

    Industries

    View All

    • Cannabis
    • Consumer
    • Energy
    • Entertainment
    • Financial Services
    • Healthcare
    • Higher Education
    • Infrastructure
    • Manufacturing
    • Non Profit
    • Real Estate
    • Technology

    Value-Added Services

    View All

    • Alternative Fee Arrangements

      Developing innovative pricing structures and alternative fee agreement models that deliver additional value for our clients.

    • Continuing Education

      Advancing professional knowledge and offering credits for attorneys, staff and other professionals.

    • Crisis Advisory

      Helping clients respond correctly when a crisis occurs.

    • DEI Strategic Services

      Providing our clients with legal, strategic, and practical advice to make transformational changes in their organizations.

    • eDiscovery

      Leveraging law and technology to deliver sound solutions.

    • Global Services

      Delivering seamless service through partnerships across the globe.

    • Innovation

      Leveraging leading-edge technology to guide change and create seamless, collaborative experiences for clients and attorneys.

    • IPED

      Industry-leading conferences focused on affordable housing, tax credits, and more.

    • Legal Project Management

      Providing actionable information to support strategic decision-making.

    • Legally Green

      Teaming with clients to advance sustainable projects, mitigate the effects of climate change, and protect our planet.

    • Nixon Peabody Trust Company

      Offering a range of investment management and fiduciary services.

    • NP Capital Connector

      Bringing together companies and investors for tomorrow’s new deals.

    • NP Second Opinion

      Offering fresh insights on cases that are delayed, over budget, or off-target from the desired resolution.

    • NP Trial

      Courtroom-ready lawyers who can resolve disputes early on clients’ terms or prevail at trial before a judge or jury.

    • Social Impact

      Creating positive impact in our communities through increasing equity, access, and opportunity.

    1. Home
    2. Insights
    3. Articles
    4. Receive an IRS refund in error. Should you keep it?Articles

    Article

    Receive an IRS refund in error. Should you keep it?

    June 29, 2020

    Share

    Nixon Peabody Income Tax Team

    What should you do if you receive an erroneous refund from the IRS? The short answer is no, you should not keep it.

    If you receive an erroneous refund from the IRS, those funds should be returned as soon as possible. Depending on how the refund was received, there are different steps you should take to accomplish this.

    If you receive a paper check and have not yet cashed the check, the following steps should be taken:

    • In the endorsement section on the back of the check write "Void"
    • Send the check back to the proper IRS location within 21 days
    • Include a brief explanation for the reason you are returning the refund

    If you receive a paper check and have already cashed the check, the following steps should be taken:

    • Send a personal check, money order, etc. to the proper IRS location within 21 days
    • Include on the check: Payment of Erroneous Refund, the tax year of the refund being issued, and your taxpayer identification number
    • Include a brief explanation for the reason you are returning the refund
    • There may be interest due to the IRS if repaying in this manner

    If you receive the refund through a direct deposit, the following steps should be taken:

    • Contact the ACH department of your financial institution and instruct them to return the refund to the IRS
    • Call the IRS at 800-829-1040 (individual) or 800-829-4933 (business) to provide an explanation for the reason you are returning the refund
    • There may be interest due to the IRS if repaying in this manner
    Trusts And EstatesIncome TaxFiduciaryPersonal

    Practices

    Private Wealth & Advisory

    Subscribe to stay informed of the latest legal news, alerts, and business trends.Subscribe

    • People
    • Capabilities
    • Insights
    • About
    • Locations
    • Events
    • Careers
    • Alumni
    • © 2023 Nixon Peabody. All rights reserved
    • Privacy Policy
    • Terms of Use
    • Statement of Client Rights
    • Supplier Diversity Program
    • Nixon Peabody International LLC
    • PAL