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Tax Law (Questions About Taxes)/Amending Tax Return and getting refund after owing


When my accountant completed my 2012 taxes I owed over $16,000 to the IRS and over $3,500 to the state due to a short sales on my second residence and receiving a cancellation of debt. At the time my accountant did not tell me that I could file form 982 and state insolvency, so I have been paying taxes for the last two years via a payment plan with the IRS.

Upon doing some research on my own last month I found out that i could declare insolvency based on my debt. So i contacted the accountant and he filed the amendment for me on both the state and federal level along with form 982 and his calculation came back that the IRS owes me $91 and I only owed the state $10(not taking into consideration what I have been paying for the last two years). I filed the amendment at the beginning of this month.

Will the IRS refund me all the money I have been paying for the last two years? Same with state(VA)? And should I continue to pay the payment plan while I want for the IRS to review the amendment even if it means i get a refund?


Thanks for your question.

They will refund it. The amended return should reflect the amount of taxes you have paid on installment. They won't refund the interest or fees, but will pay you interest on the refunded amount. Your preparer should reimburse you for fees paid to enter the installment agreement and not charge you for the amended return, as this is a result of his error/negligence.

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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