Unemployment change. If owed, should clients still pay dues.

[COMPLEXEYEDEA]

Hey everyone! Quick question if anyone may know, If my client was hypothetically due to pay say $400.00 dollars to IRS, but due to unemployment changes are adjusted to receive $600.00 dollar refund, should they still send the 400 dollar check and look for a credit to come back when IRS sends out refunds, or shall they refrain from paying if they have yet to send payment?

[BobKamman]

Are you saying that the return with the balance due has already beem filed?  I would consider this a situation for filing a superseding return, even if you believe IRS's vague hope that they will get around to amending returns later this year.

[dkh]

I would wait until closer to the May 17th deadline to see if IRS is truly going to make the adjustment or if we will have to file amended returns. 

[BobKamman]

If IRS is promising to finish processing the backlog of millions of 2019 returns by "summer," when do you think they will get around to calculating refunds for 2020 returns showing unemployment income?

Compare that date to the date you think they will start sending collection notices for returns already filed that report income that can now be excluded.  

[dkh]

hmmmmm... do I detect a hint of skepticism ????      I don't think IRS is going to do the adjustments.  I think they are just stalling us from sending in amendments until after they implement the CTC advance payment system because they aren't staffed to handle both.

[BobKamman]

They aren't staffed to handle either.  

[COMPLEXEYEDEA]

LOL, thanks everyone, ill advise to send in payments.