If I made a mistake and I have to pay back money, will they work w/ me. I am a single mom and I don;t have extra cash just laying around. I am just sick to my stomach!
2007-06-12 06:14:04 · 6 answers · asked by Jeannette z 1 in Business & Finance ➔ Taxes ➔ United States
The date you have to apy should be in the letter you received.
No, they don't negotiate taxes. You can hire a tax attorney to try, but the average retainer fee is 10k.
If you don't pay them they will take any money you have in banks, garish your wages and put a lien on your property. If they aren't paid within about 2 years from this they start working on criminal charges.
You should not have cheated.
If this is from your state you can count on the IRS following behind as soon as the state has their money. They usually don't both go after their money at the same time.
2007-06-12 06:21:47 · answer #1 · answered by Anonymous · 0⤊ 2⤋
Whoa!! Before you start planning to pay, make sure they are correct. If you received a notice CP-2000 in my experience they are wrong about half the time.
They are very hard to read and understand unless you are a tax professional.
You state that "something does not match". Interesting choice of words because many of these are based on IRS' matching program; They match forms W-2 and the various forms 1099 to the amount you reported, and if your number is smaller their computer generates a letter.
Some of the reasons why they might be wrong: you reported the income on the wrong line; the amount you received was subject to adjustments and you put the net amount instead of stating them separately: the sender of the 1099 made a mistake.
So, the first thing to do is to look carefully at what they say was not reported. Is it correct? If not, your response shpuld explain wht. If it is correct, you still might not owe waht they say.
Unless you are 100% certain that what they are asking for is due to them, I'd bring the letter, the tax return and all the documents you have to a tax professional to determine if they are correct.
Good luck!
2007-06-14 21:36:56 · answer #2 · answered by Hank Roitman, EA 4 · 0⤊ 0⤋
Don't assume they are right... The IRS does make mistakes.
If something "doesn't match" what the IRS received as information documents for you (W-2s from employers, 1099-INTs from banks, etc), you may have omitted something you thought was not taxable. There may be a legitimate reason to omit something... it just might not be taxable. If it should have been included, file an amended return and pay what you can. The IRS will work with you, but they will charge interest.
If it a claim for Earned Income Tax Credit, Child Tax Credit, etc, they may want documentation that the Qualifying Child lived with you for at least 6 months.
If you used a tax preparer, go back to them for assistance. If you did them (or had someone do them) on your own, you should still go to a reputable tax preparation service for advice and assistance.
The key is to not put it off until next tax year.... interest and penalties will accrue if they are indeed correct.
2007-06-16 11:39:31 · answer #3 · answered by Ron_Gurney 1 · 0⤊ 0⤋
Yes they'll work with you. And relax, by the way. Did the letter give an estimate of what you owe? They usually do. and they tell you what didn't match. And sometimes you don't owe as much as they think, or even don't owe anything - you might have additional information that they don't have.
If you left something out, either on purpose or accidentally, then if including it means you owe more tax, then yes you'll have to pay it, along with interest and penalties. If you can't pay it all at once, they'll set up a payment plan.
Good luck.
2007-06-12 14:22:36 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
do not let your fear of the situation make you inactive. did you do your own 2005 tax return or did you have a professional do it? if you used a professional, take the letter to them. quite often they will represent you to the IRS. If you did it yourself, contact the IRS as soon as possible to try and work out a plan. Good luck.
2007-06-12 13:23:14 · answer #5 · answered by brotherlove@sbcglobal.net 4 · 0⤊ 0⤋
Yes, they will work with you. They are not looking to take you to court or put you in jail. Just make sure to communicate with them and be truthful. If it is determined that you made an error, they will often waive penalties and allow you to pay it off over time.
2007-06-12 13:17:52 · answer #6 · answered by bigpuppax 2 · 1⤊ 0⤋