Received letter stating I owed around $4000 for 2005 taxes filed. It didn't match up to their records and I was over paid. I do not have this kind of money. Nor can I afford for them to keep my tax refund each year, until it is paid back. How can I get out of paying it at all? Or at least half of it, if possible.
2007-03-10 08:17:51 · 7 answers · asked by g_davis58 2 in Business & Finance ➔ Taxes ➔ United States
There is no getting out of paying what you owe. You need to set up payment arrangements with them making monthly payments, If you are able to borrow the funds from a credit card or family member do that to avoid future penalties and interest.
The IRS will keep any and all refunds until the balance is paid in full
To set up payment arrangements call them at
2007-03-10 08:24:52 · answer #1 · answered by Anonymous · 2⤊ 0⤋
There's no way out of that. If you owe the IRS, they WILL capture any refunds due you (State and Federal) until the debt is paid.
You should work out a payment plan with the IRS and stick to it. Any refunds due while you are on the plan WILL be taken to offset your tax debt; there's no way around that either.
Your only hope is to challenge the amount that they claim you owe from 2005. The letter stated the reason that you were assessed the added tax along with the penalties and interest. Call the number on the letter and speak to the agent who is handling your case.
If your numbers don't match up with the IRS's numbers it's possible that someone is using your SSN illegally. I've had that happen myself. It was a bit stressful, but I sorted it out with the IRS eventually and there was no tax due in the end.
2007-03-10 08:51:49 · answer #2 · answered by Bostonian In MO 7 · 3⤊ 0⤋
You can't and once you file your 2006 return IRS will keep the refund to pay what you owe. The reason IRS is saying you owe is because you did not report all your income when filing the 2005 return. But if you didn't file your return then IRS is prepared to file it for you and it does not give you any dependents, deduction etc. If you did file and you didn't report all your income or don't know what you didn't report contact IRS and they will send you the unreported income report. IRS 1-800-829-1040, or to work out a payment plan after your 2006 refund offset to the balance owed call 1-800-829-0922.
2007-03-10 08:26:01 · answer #3 · answered by Ms. Angel.. 7 · 0⤊ 0⤋
Hi there...yes unfortunately the IRS can levy (or take w/o your permission) any of your wages, tax refunds, etc until they are paid what they say you owe them. If you were in Los Angeles, I would be able to help you. What you need to do is go to your accountant or tax preparer if they cannot assist you, you need to look in your area for what is called an IRS Enrollment Agent or simply look for an accountant that can represent you to the IRS and bargain for you in order to get you out of this mess in the cheapest, fastest way possible without them digging their hands into your earnings or tax refunds. It is not as horrible as you think, thousands of people go through this. The worst thing you can do however, is do nothing.
2007-03-10 08:23:57 · answer #4 · answered by SoCal007 1 · 0⤊ 0⤋
You are going to need to get ALL of your records together from 2005 and prove to them that you are right and they are wrong.
You need to do some research and file an appeal with the IRS.
I have seen cases where identity theft occurred and someone else got a hold of your social security number and earned income under your name. This is one possibility.
Your question is really very complicated and nobody will be able to answer 100% without more information.
2007-03-10 08:29:45 · answer #5 · answered by shmigs 3 · 1⤊ 2⤋
If you owe the IRS money, they'll keep your refund and apply it to what you owe.
2007-03-10 11:15:28 · answer #6 · answered by Judy 7 · 0⤊ 0⤋
calculate your withholding so you owe money each year. then there won't be a refund for the IRS to keep.
2007-03-10 09:50:16 · answer #7 · answered by bob_whelan1944 3 · 0⤊ 1⤋