Was I tricked by the IRS and what can I do about?

Question

In 2004 I filed my return but forgot to file for an annuity payment that I had received, The IRS contacted me an I was told that I would have to start a payment plan and I did that. Then in 2005, I found out that I could amend the return that I forgot to file in 2004 and I did and now they keep saying that I still owe them, I thought that I had at least 3 years to file that return and why do I still owe them? Is it because I agreed to the payment plan? If so I feel like they tricked me into it because at the time I did not know that I had other options
it was not brought to my attention that I could still even file this return the next year, all they kept telling me was i needed the payment plan. I feel like they held back information and I want to do something about it.

Answer 1

Find your original notice. Rest assured the IRS has a copy. The typical notice asks if you agree with the changes and explains you can disagree and prove them wrong or amend your return. You may still have cause to request going to trial court, but don't go based on assumptions.

Regards,

Steve Larson

Answer 2

Amending your return replaces the incorrect information you originally filed with corrected information. You still owe the difference between what you originally paid any what you would have paid if you had declared the annuity in the first place. The payment agreement is a plan to pay what would have been due with the amended return.

Answer 3

Amending the return doesn't remove the tax you owe. If the IRS figured the tax on the annuity wrong contact the Taxpayers Advocate Service (internal division of the IRS) in your area. You may also request a Collection Due Process Hearing. Get your facts together first.

Answer 4

1) If you sent in a tax return and set a bill then the IRS system see billing on a return

2) if you "amend" a tax return, another word correct your tax return, the IRS computer should push the prior information over and allow new information to put though, The old bill and old return information should be override.

3) if your "amend" return is sent in but rejected for what ever reason, then you still are dealing with the old bill not with the new information.

4) Take action by bring all your amend return and statement and set up an appointment with IRS and see what is going on with your account.

Answer 5

No you were not tricked a similar thing happened to me and my husband. When you receive the annuity they should have informed you of the taxes, since they didn't it was up to you to claim it on your taxes the first time now when they received information that you received this money they want their piece, and since you didn't volunteer it to them they decided to penalize you and once you agreed to the payments they have you right where they want you. i suggest you get in touch with a lawyer who specializes in taxes and people who owe them. that's what we did and we ended up only paying 10% of the total amount due.

Answer 6

That's right they are hounding you to live up to the payment agreement you made.

It is your responsibility to seek adequate advice before signing such an agreement. You should contact an accountant who is a CPA and Enrolled Agent they may be able to get you out of the agreement you made. They may tell you that there is nothing else that can be done. Expect to pay the accountant for their advice.

Answer 7

You can always amend your returns, but you cannot amend a tax liability. Just because you went back and claimed it doesn't mean you don't owe the tax, interest and penalties.

Answer 8

If you had a payment plan, then you owed them money. No trick, you owed them and you must pay them. It's pretty simple.

Answer 9

Arrange for an appointment with an IRS agent....get a lawyer. And if that doesnt work...head for Mexico or Canada. :)

Answer 10

Call them for an appointment. Document everything said. Hopefully they will work with you!