I got a notice in June 2006 saying that my Federal Income Tax for 2004 was incorrect and I owed money. I've been using the EZ form for 12 years, do it all myself and have never had a problem. I didn't think I did anything wrong but I had to prove it. I had made copies of what I sent in. But, right around the time I filed, I moved and couldn't find the 2004 forms anywhere. I requested transcripts but they didn't come in time. So, I thought I'd just pay it and get it over with. Today, I just got a certified letter from my State Dept of Taxation saying that I owe them money too. Back in June, it didn't cross my mind that the amount on Fed tax was going to change the amount on my State tax. I now have the 2004 transcripts & found the original forms I filed. By sending in the money to the Fed tax, I admitted that I made a mistake, even though it's not actually true. Can I prove to the State that I don't owe money, or is it too late & I have to pay it? I have less than 60 days to dispute.
2006-10-28 02:58:14 · 9 answers · asked by ☆skyblue 7 in Business & Finance ➔ Taxes ➔ United States
Jennifer K and acmeraven gave good answers. I wanted to add, sending money to the IRS is not an admission of anything. It is simply a means of avoiding additional interest and penalties if you should prove to own the money. Even if it was an admission, you are still within the 3 year limit to amend your 2004 return. There is not a rule against amending the same return more than once. Any amendment will draw extra attention to your return, but as long as you are making a good faith effort to follow the law, you should have nothing to worry about.
2006-10-28 07:57:20 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
If you now have a transcript you can fill out a 1040X to send to the IRS asking for a refund of the amount you paid them in error. Dispute the amount with the state and include a copy of the 1040X so they can see you have filed to correct the IRS records. If you are right and still can't get any satisfaction you can contact the Taxpayer Advocate Service of the IRS and they will assist in resolving the problem.
2006-10-28 12:14:16 · answer #2 · answered by acmeraven 7 · 1⤊ 0⤋
First send a letter to the state telling them your are in correspondence with the IRS because you feel they errored. Then send a letter to the IRS saying that you paid what they asked to stop further penalties and Interest but now you need to know why they did what they did. Sounds like the SSA had a W-2 sent to them that you didn't know about. Anyway, get the correspondance going and make them show you what they have. If they are wrong, they will pay you back and possibly with interest. So drag it out a little.
2006-10-29 00:53:43 · answer #3 · answered by Anonymous · 1⤊ 0⤋
You can file an amended return, or in this case, an amended over payment. Send all the documents you now have, along with the forms and payment copy you sent to the Federal Government, and send the paperwork you have to your state agency to show you filed correctly.
You usually can call them (a number is probably listed on the payment request they sent you) and speak to a representative.
You sending payment does not acknowledge a mis filing, but rather that you didn't want to incur additional potential penalties while you located your documents.
Good Luck
2006-10-28 10:14:18 · answer #4 · answered by Jen 5 · 1⤊ 0⤋
Can you not get the IRS to show you what you did on your return that indicates you owe money. I think that since you have already paid them they may not want to help you. Explain the circumstances that you need this info for state taxes and your situation with lost documentation. If they don't think you want money back from them they may be helpful.
I sure hope that it was a very small amount if you just paid it off without them showing where you went wrong.
2006-10-28 10:10:32 · answer #5 · answered by Bella Donna 5 · 0⤊ 0⤋
Don't try and fix this on your own. You have already seen the result of attempting to do so. Go to a tax professional and they will repair the damage. They may charge you something but it is going to be done correctly. Several people on this forum clearly could tell you how to do it but the "doing" it part when it comes to 1040X returns and communication with the IRS or state agency can be confusing.
2006-10-28 15:42:20 · answer #6 · answered by ? 6 · 1⤊ 0⤋
Get a CPA to help you. The 1040X is mightily confusing if you have never done one. this is the CPA's slow season so take advantage of it.
As an aside, we got a new client (as a result of getting audited) who thought she had been doing her taxes correctly for many years. In fact she had been overpaying by several thousand dollars each year. We got three years' worth back for her (the maximum you can go back), then she had the temerity to complain about a $400 bill.
2006-10-28 12:23:24 · answer #7 · answered by skip 6 · 0⤊ 0⤋
call and talk to the state and federal tax office. This is why I use a tax preparation company. if they make a mistake they pay the fines and if there are any questions they have to answer them and back up the transcripts.
2006-10-28 10:12:30 · answer #8 · answered by norsmen 5 · 0⤊ 0⤋
Call the IRS and explain what happened. You might be able to get that money back if you can show you didn't owe it.
2006-10-28 10:01:34 · answer #9 · answered by Judy 7 · 0⤊ 0⤋