I failed to file in 2002, and now they are giving me all these charges. Does it help when I finally file? Do I have any leverage then? I don't want them to take this year's return- what's the best way to avoid that? What about an "offer in compromise"? Is that worth the application fee? Thanks in advance
2007-03-13 04:25:42 · 7 answers · asked by Flam Glamalam 2 in Business & Finance ➔ Taxes ➔ United States
I have filed for all other years.
2007-03-13 07:17:18 · update #1
I do not feel that I owe the government anything; I only pay to avoid them taking my livelihood away.
2007-03-13 07:18:04 · update #2
As far as the application fee, that is $150 charged by the IRS. I do not go through a tax preparer.
2007-03-14 07:34:32 · update #3
You can't. You need to either file showing that you don't owe anything, or take the figures that the IRS computed doing a Substitute return, If the IRS has determined that you owe, they will keep any portion of your refund to pay on the balance that you owe, there is no way to get around that. They are not going to send you money when you owe money.
Once the balance is paid in full the interest and penalties will stop being charged.
2007-03-13 04:32:44 · answer #1 · answered by Anonymous · 2⤊ 0⤋
There's no way to avoid them, aside from filing a timely return and paying the tax due.
If you didn't file and are being assessed a tax, you should quickly prepare and file a return. When the IRS prepares a "constructive return" on your behalf, they don't claim any exemptions or deductions for you. Filing a proper return can limit the damage if you come up with a lower tax liability than they do.
There is no way to stop them from capturing any refunds if you have an outstanding balance with them.
An OIC may be worthwhile but it isn't a panacea. There's the application fee as well as possible deposits and there's no guarantee that it will be accepted.
2007-03-13 11:41:24 · answer #2 · answered by Bostonian In MO 7 · 2⤊ 0⤋
At least get the return filed ASAP and then enter in to a payment arrangement with them.
Offers in Compromise are generally only used when total amount owed is over $10,000 and, even then, over 85% are rejected.
They will not do anything about the interest but they may abate the penalties if you had a very good reason for not filing.....(I forgot isn't going to cut it).
2007-03-13 11:41:52 · answer #3 · answered by Wayne Z 7 · 0⤊ 0⤋
An "offer in compromise" does not apply to you. An offer in compromise pertains to employers, not employees.
You avoid penalties for not filing - by filing.
File your 2002 return.
And there is no such thing as an "application fee". Its probably a "euphemism" your tax preparer uses in lieu of saying "Fee for services rendered in preparing your taxes".
2007-03-14 13:20:27 · answer #4 · answered by bold4bs 4 · 0⤊ 0⤋
File your 2002 return NOW. Every day you waste is added interest. The penalty for 'failure to file' will not change - but you can avoid some interest by filing the 2002 return as soon as possible. Make sure you file this years return on time or you could face 'intentional fraud' charges. - IT'S ONLY MONEY !!!
2007-03-13 11:56:01 · answer #5 · answered by broboca3 2 · 1⤊ 0⤋
If you failed to file in 2002 and were caught, you should at least pay the penalties ASAP. Then, you can work out a payment plan if you actually owe much.
File ASAP. Every day you wait, you add on additional interest charges.
And, yes, they can take what you owe them out of your 2006 refund. Most likely, they will.
2007-03-13 11:29:52 · answer #6 · answered by Jay 7 · 2⤊ 1⤋
you need to file 2002, 2003, 2004 and 2005 before you do 2006. and you need to do it right away. i don't think you have any leverage to negotiate a "deal". just pay what you owe like the rest of us.
2007-03-13 12:30:37 · answer #7 · answered by Ovrtaxed 4 · 0⤊ 3⤋