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Posted: Tue Mar 11, 2008 2:05 pm

Here is something interesting I found in my local paper today. It does say that if you owe the IRS, they will take it and apply to what you owe. However, make note of the section in bold. I do owe the IRS but I am on a formal repayment plan.

Can someone find on irs.gov where it states that you will not get your check if you owe AND on a payment plan with the IRS?

Q: I'm retired and owe about $775 in back taxes. I've filled out my 1040A tax form to get a $300 stimulus check. Now I'm wondering: Will the IRS just take my check and apply it to my unpaid tax bill?

– Earl C., Sacramento

A: Because you owe taxes, you may never even see that stimulus check. If you've got any past-due income taxes, either state or federal, the Internal Revenue Service can take your $300 stimulus check and apply it to what you owe.

That's also true for a number of other delinquent payments, such as student loans, child-support payments and SBA loans.

When it comes to past-due bills, "the IRS ends up being the debt collector for the government," says IRS spokesman Bill Steiner. He said most states share information on delinquent accounts with the IRS.

However, Steiner says, the key word is "delinquent." If you are in a formal repayment plan for a student loan or IRS tax bill, for instance, you'll likely get to keep the stimulus check. If not, the IRS will send you a letter, informing you where your stimulus check was assigned.

Posted: Tue Mar 11, 2008 2:07 pm

Volley, that may be great news for me. I am in a formal repay plan. Well, I can only hope.

Posted: Tue Mar 11, 2008 8:10 pm

Good information!! My EX OWES the IRS. He's set up a payment plan with them and hasn't paid them since last year. Well...I suppose he's not getting a Rebate back!!

Posted: Wed Mar 12, 2008 7:07 am

Thanks for posting this, good information. Smile

Posted: Wed Mar 12, 2008 9:41 am

I did go on the website irs.gov and found out, that if you do owe taxes like I do, I will not get the rebate but it will apply to what I owe, therefore making my balance due lower.

Posted: Wed Mar 12, 2008 10:49 am

But are you on a repayment plan?

blueyes · Posted: Wed Mar 12, 2008 10:55 am

I am waiting to get confirmation that I am on an installment agreement for 2007 taxes.

Posted: Wed Mar 12, 2008 1:59 pm

Sorry volleyballmom I just read the last part in bold duh. So there could be a possibility I can keep the check if in an installment plan.

Posted: Wed Mar 12, 2008 3:05 pm

kolodin-no worries! Smile

I think it will be a "wait and see" what happens if you are on a formal repayment plan...it would be nice to have the cash in hand or I guess just the same if the applied it.

nikas2008 · Posted: Fri Mar 28, 2008 5:58 pm

Hello,

I just spoke with a representative (1-800-829-1040) and was informed that if you are currently on a payment plan, then the stimulus payment would be applied to your balance due.

Posted: Mon Mar 31, 2008 7:18 am

I wonder, when you file taxes this year, and find that you owe, could you deduct the projected stimulus amount you're getting?

Posted: Mon Mar 31, 2008 7:43 pm

Somehow, I don't think that would fly.......

If you decide to try it, please call the IRS and ask them first.

Posted: Tue Apr 22, 2008 7:08 am

My friend just called the IRS on Friday to set up payment arrangements and she asked them if she was getting the stiumulus payment and they informed yes that she would and that she would be getting $600.00 back.

Posted: Tue Apr 22, 2008 7:27 am

I just called and because I am on a payment plan, My check is going to pay down what I owe. I will not be getting my check.

Posted: Tue Apr 22, 2008 9:32 am

I think that my friend is lying to me because if you just called them Kash what you say is right I think she is lying... Twisted Evil

I don't understand what she is doing with her exemptions she is claiming like 4 and she only has herself...she is really screwing herself royally at the end of the year I have told her to change it to 0 but she doesn't listen Twisted Evil

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