Will this be the end of it?

Question

Yesterday I got a notice from the IRS, It said I made a mistake for 2005, and I still owe $800.00. I have 30 days to pay if I agree with this.

I fully intend to pay this ASAP, But will this be over then, or is there more to come?

Mail from the IRS makes me nervous.

Thanks

Answer 1

In nearly all cases, once the IRS assesses additional tax for a given tax year the book is forever closed on that year. I suppose that they could continue digging, but that would be highly unusual.

But before you just pay the IRS off, review what they are saying and see if it's correct. If you believe that it is, go ahead and pay. But if it looks like they made a mistake (and they do fairly often!) then contest the assessment amount with your own figures.

If you want to stop the clock on any further interest and penalties, you can pay them under protest and continue to argue the point with them. If you prevail, they'll send you a refund.

Answer 2

PAY THE AMOUNT UNDER PROTEST

Then Appeal as to exactly what you did wrong, the IRS is not always correct. But by making full payment THEN appealing you should have no problem.

The IRS makes everyone nervous -- I call them the US Gestapo since they have so much unneeded power to affect the citizens personally.

Answer 3

That should square things with them unless they check other years and find more mistakes. It is un-nerving to get letters from the IRS but don't let it intimidate you. It's usually just something that needs to be fixed. If you have any further questions just call them.

Answer 4

First of all examine the paperwork they sent and see if you really do owe them anything. About 60% of the CP2000 notices they mail out are in error. If you can't make heads or tails of it take it to somebody who can. Have them explain exactly why and what happened. You may not owe anything.

Answer 5

That should be it... I had the same thing, but forgot to send the payment and all of a sudden my wages were garnished.