IRS sent me a fine notice of $1200 for not report $100 of interest on one of my old bank's savings account. I do not recall if I got that statement or not, but it is true it never got reported.
What options do I have and what are the steps that I should take to fix this problem? I am a poor student who is bearly meeting both ends, and my friend helped me do the tax....pls help.
2007-05-07 07:55:31 · 8 answers · asked by Mike N 2 in Business & Finance ➔ Taxes ➔ United States
You are not giving the entire story. The IRS does not fine someone $1200 for forgetting to report something. There must have been notices in the past that you ignored. The most they should charge is interest on the tax on the $100.
2007-05-07 08:01:42 · answer #1 · answered by Barkley Hound 7 · 1⤊ 0⤋
Are you sure the notice you received is really from the IRS? The fine sounds a little extreme to me for such a small error.
2007-05-07 08:04:01 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Call the toll free number in the upper right hand corner of the notice. Explain what has happened and play "poor dumb taxpayer". Explain that you never received any notice from the bank that they had paid you interest; and that you had a young and dumb friend do your taxes (who failed to ask if you had any interest income). Make it clear that yours was a bookkeeping error and you had no intention of trying to defraud the government, etc. You might consider writing the above out in a letter of explanation, call the toll free number and ask if you can fax the letter of explanation to them. You can most likely get the fine abated or cut to a hundred dollars.
2007-05-07 08:03:53 · answer #3 · answered by acmeraven 7 · 0⤊ 2⤋
Call the IRS and explain your situation and see if they'll accept a settlement of say $200. I know you can get help from an attorney but it probably wouldn't be worth the money you'd have to pay. The people at the IRS actually are somewhat reasonable, see what you can work out with them.
2007-05-07 08:00:14 · answer #4 · answered by Anonymous · 0⤊ 2⤋
They got your attention, didn't they???
About all you can do is call them, arrange for an appt and beg for mercy.
And find some friends who know how to prepare taxes, did they ask you if you had any interest from bank accounts???
2007-05-07 08:00:53 · answer #5 · answered by Barry auh2o 7 · 0⤊ 0⤋
$1200 for $100 that wasn't reported? Just how long ago was this that the income wasn't reported?
Call them and see if you can get it knocked down some.
Good luck.
2007-05-07 10:47:01 · answer #6 · answered by Judy 7 · 0⤊ 0⤋
call the IRS and talk to someone about Ur financial situation and maybe they can set u up on a payment plan
2007-05-07 08:00:06 · answer #7 · answered by Anonymous · 0⤊ 0⤋
The IRS also has a liaison that may be able to help - try to find that person on their web site.
2007-05-07 08:01:36 · answer #8 · answered by justwondering 6 · 0⤊ 1⤋