Why does the IRS require you to file taxes for years you made no reportable income when u get a refund 1 year?

Question

I filed 2006 return, am suppose to get refund. Didn't file 2004 and 2005 because no reportable income. IRS is making me file 0 on forms for 2004 and 2005 because I get a refund for 2006. WHY!!!!!!!!!!!! They are holding my refund until I do this.

Answer 1

They are power mad. Do what they ask.

Answer 2

The problem is definitely the "non-reportable" income. They have a record of income reported, or they know of transactions that indicate that you did have income. Your best bet before filing those returns is to head on down to the local IRS office and find out what they have. You can request a copy of any W-2s and 1099-MISC (the most likely culprit) that they have on record for you.

Under the table income is getting less common since the IRS does not allow the employer to claim what they paid you as a deduction (if more than $600) unless they report the income you made to the IRS. Many a client of mine has been told that it wouldn't happen, and then come Feb 3rd, they have a 1099-MISC in their mailbox. Nothing you can do about it by then, you owe the government a lot of money. You may have been wronged even further if your boss reported it to the IRS and never gave you a copy of the 1099-MISC. That really stinks.

I also had a client this year who was getting a bill from the IRS for taxes owed on un-reported income and when he got his information from the IRS, the name on the W-2 was obviously not his. An illegal alien had "borrowed" his social security number to get a job and the IRS did not like the fact that my client did not claim it on his taxes. He had to go to the IRS and file a fraud claim (though I have not heard back from him on whether he was successful or not).

Either way, the IRS has something you do not know about. Find out what is is ASAP.

Answer 3

sure, it will be utilized hostile on your delinquencies. you ought to not merely settle for that the quantity they say you is sweet. confirm it out your self, as IRS takes maximum tax generating position. Do an amended go back for 2008. Do you've prices hostile to the income? You blew it through "forgetting" to comprise all that stuff and also you want to impressive your blunders. in case you do not something, the IRS will really take any refund due this 12 months to fulfill very last 12 months's delinquencies. do not ignore about this. The IRS will assemble what's owed them, and through not paying them, it only grows and grows with consequences and interest. so a thoughts only rumors of stimulus, there develop into the Making artwork Pay credit for 2009, besides the indisputable fact that.

Answer 4

This is so that they can establish a paper trail on you so that they can go after you for tax evasion in the future if neccessary. They also are looking to create a paper trail so that they can determine if you were hiding assets or income. Because it comes down to how did you pay to live? If you didn't have income then someone else did pay for you and they didn't report that you were their expense. See where I'm getting at. They want to know what have you been doing?

Answer 5

This is very strange and is not normal practice. It might be that they have reports that you DID have income those years. You mention not having "reportable" income - possibly the IRS doesn't agree that whatever income you're referring to wasn't reportable.

If you had some 'under the table' income those years, be very careful about claiming that you didn't - you could end up in major trouble.

Answer 6

They want a paper trail of you verifying you made no income those years.

If you owe them taxes for those years, they would keep it out of your refund.

Answer 7

It's the U.S. government. We can ask but they won't tell. That is our right :(