He is on Social Security and VA Disability...WTF???
2006-12-06 01:36:34 · 6 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
The letter would have given more detail on WHY they are saying this, unless he'd already gotten those explanations.
If he doesn't agree, he should probably find a tax attorney or CPA to represent him, since that's a lot of money.
If this was the initial letter from them, they're not always correct. I got a letter awhile back saying that due to a couple errors on my return, I owed them several hundred dollars. I refigured it correcting the errors, and came up with that I was owed an additional refund. I send everything back in with my figures, and they agreed and have sent me the refund check. So their initial letter isn't necessarily the end of it.
If your friend does actually owe them this much, though, he should try to set up some kind of payment plan or they'll attach any assets that he has.
2006-12-06 03:50:43 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Has he been trading stocks? If so, only the sales proceeds are reported to the IRS, not the cost. If the taxpayer doesn't file a return it can cause all sorts of problems.
Either way, he needs to call the number in the letter get the details on what this is for. Only then, will he know which way to go with it.
Last year, someone I know got a letter about some undeclared income from a company in Indiana. She had never lived nor worked in Indiana. She called the IRS and, as it turns out, the company in Indiana had transposed social security numbers for one of their employees. One phone call and it was all fixed.
2006-12-06 01:52:50 · answer #2 · answered by Wayne Z 7 · 0⤊ 0⤋
The letter should contain an explanation (listing of his income by payee). If not he should call & get a transcript of income that was submitted in his name for that tax year (there should be a phone # on the notice).
As previous answers have stated, it could be an error or the gross proceeds on the sale of stock/property (for which he may or may not owe tax depending on what he paid for the property). Or, for example, did he lose a home due to forclosure (this sometimes results in a statement for debt forgiveness that may or may not be taxable)? He probably will need the help of a tax pro unless he can sort it out.
2006-12-06 03:19:38 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Maybe he hasn't been filing his tax? If their claim is correct, call the number on the letter and tell them he wants to work out a payment plan.
2006-12-06 01:40:12 · answer #4 · answered by spot 5 · 0⤊ 0⤋
Have they tried to qualify it? Can you see what they are saying - even if it seems incredibly unfair?
Has your friend contacted them to enquire about the letter?
2006-12-06 01:41:59 · answer #5 · answered by Mark T 6 · 0⤊ 0⤋
What did it say give some more n/foe, to get help.
2006-12-06 01:47:19 · answer #6 · answered by Quibow 1 · 0⤊ 0⤋