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Taxes
A split-panel image of a farmer and a US Treasury check Channel 5 (left); shutterstock.com / Scott Habermann (right)

IRS threatens to seize a 76-year-old's farm over a $20,000 refund it sent by accident — money he says he already tried to return

A Tennessee man says he’s been brought to tears by the IRS after an erroneous tax refund that he tried to return years ago now has the agency threatening to seize his farm.

Wilson Perry Kirby, a 76-year-old from Coopertown, Tennessee, told WTVF NewsChannel 5 Nashville that he received a $20,000 tax refund on May 10, 2022, and tried to give it back to the IRS immediately, seeking help from his accountant to do so.

Kirby’s case isn’t a stand-alone

In May, Kirby told WTVF his accountant “didn’t make a mistake, [he] didn’t make a mistake, they made a mistake,” referring to the IRS. Kirby told WTVF that, despite years of back and forth with the IRS, the agency has charged him interest on the money that he tried to return, and kept his entire tax refund this year.

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In an update on Kirby’s story, WTVF recently reported that the IRS sent Kirby a notice in early July stating that he owed more than $2,500 in interest, or risk his property being seized. Kirby told WTVF he never spent the $20,000 refund.

In his fight to fix the situation, Kirby said he has contacted the president, governor, and mayor.

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“They don’t mind asking you to vote for them, but when you need help, you can’t get ahold of anybody,” he told WTVF.

He said that he thought things were finally going to be solved when he heard from U.S. Sen. Marsha Blackburn’s office in May — but he has continued to receive notices from the IRS.

Reporter Hannah McDonald reached out to the IRS, but the agency said it cannot discuss an individual’s case per federal privacy laws. McDonald reported that she did, however, “finally [get] an IRS spokesperson to agree to reach out to Kirby directly.”

Kirby says he has done everything he can to correct the error, including a meeting in downtown Nashville with the IRS Taxpayer Advocate Service, “an effort, he says, got him nowhere,” the report reads.

Kirby simply wants the matter “over and done with,” he told WTVF, adding, “I’ve cried, I’m about to cry now.”

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McDonald reported that she has connected Kirby with a Nashville tax attorney to see what legal options he may have.

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What to do if you get an erroneous refund

The IRS says that a refund is erroneous if “you receive a refund you’re not entitled at all or for an amount more than you’re entitled to.”

If a refund is a different amount than what you were expecting, “indicating the IRS changed the amount, a notice explaining the adjustment is mailed to your address of record,” the IRS says. Be sure to review such a notice and make sure that the change is correct.

If you receive an erroneous refund, don’t wait to see if the IRS notices — waiting (or hoping) that it goes unnoticed could cost you. Cashing an erroneous refund check, or not returning a direct deposit payment promptly, can mean you’ll owe interest to the IRS.

Here’s what to do if you receive an erroneous refund.

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If you receive a paper check and you haven’t cashed it yet:

  • Write “void” on the back of the check in the endorsement section.
  • Submit the check within 21 days to the correct IRS location in your state (call 800-829-1040 to find your location).
  • Enclose a letter stating “Return of erroneous refund check” with a brief explanation of why you’re returning the refund check.

If you’ve already cashed a paper check:

  • Send payment via check, money order or other method to the correct IRS location in your state.
  • Write on the check or payment method “Payment of erroneous refund,” the tax year, account type (individual or business) and your taxpayer identification number.
  • Include a brief explanation of why you’re returning the refund.

If you received the erroneous as a direct deposit:

  • Contact your financial institution’s Automated Clearing House (ACH) department and tell them to return the deposit to the IRS.
  • Call the IRS — 800-829-1040 (individual) or 800-829-4933 (business) — and explain why you’re sending back the refund.

And, as always, be on the lookout for scammers pretending to be the IRS. Unexpected emails, calls, or messages on social media that threaten you, rush you to send money, pressure you for personal information, or make offers that seem too good to be true are likely scams.

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Rebecca Payne Contributor

Rebecca Payne has more than a decade of experience editing and producing both local and national daily newspapers. She's worked on the Toronto Star, the Globe and Mail, Metro, Canada's National Observer, the Virginian-Pilot and Daily Press.

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