I was audited in DEC apparently I owe $800 now I filed my 07 taxes and it said i have a $1400 refund.. help!?

Will the Government just take the $800 i owe them outta my $1400 refund, or how will that work?
As i JUST got audited .
and I'm pissed becasue I think H&R did my taxes wrong last year, hence the audit.. but I'm out of the country til June this year, so i cant deal with that til later.
BUT anyway..

How will it work when I owe $800 from the audit, and now am supposed to get a refund of $1400..
Will i just get a refund of $600 instead?

I am Canadian, so this question refers to the canadian government

More US replies I see, but in this case the rules are pretty well the same it seems. Assuming your audit report is finalized, CRA will deduct the audit figure from the refund for this year.

PS if H&R Block did make a mistake, their audit guarantee should cover you for any penalties and interest you are assessed. Not the tax owed, that would have been your cost no matter what, but if their error resulted in penalties of interest, they will cover them.

Contact them with the audit information, and ask them what they intend to do.

IF you don't pay the $800, the IRS will delay your refund from 2007 and grab the $800. Due to it being so close to the filing due date, they might grab the $800 even if you did pay it.

EVEN though you're out of the country, you should contact Block. They have a guarantee. They have email access. Contact them ASAP, because that office may be closing on 4/16, although the main office should still be open. Have some one local get you contact information, or go to their website.

yes. and H&R should know that you were audited. they claim that they will back up any tax preparation that they do so contact them and make sure they know.

yes, you will get the difference.

you can register a dispute against the amount owed, if you need time to straighten things out being out of the country.