I recently received a letter from IRS indicating I never filed one of my W2 from a previous job in 2005.Honestly, I never received the W2. So I called the company.(no longer works there) and the sent me the form.I noticed it was sent to a friends address.I need to respond to IRS inquiry.What will happen next?I have never owed IRS before.What are my options?
2007-06-26 09:37:09 · 8 answers · asked by Ambition 2 in Business & Finance ➔ Taxes ➔ United States
All you have to do is fill out the form 1040x Ammended tax return. you can find it on the irs website under forms and publications. you should also write a letter explaining what happened. remember to keep copies of everything that you send to them. if you end up owing money then you can work out payments with them. you will also be penalized since the money owed would be considered late. its not really a big deal, just take care of it asap.
2007-06-26 09:47:38 · answer #1 · answered by thejenns22 4 · 0⤊ 1⤋
Basically, you're toast. The IRS probably sent you a CP 2000 notice informing you of the tax, interest and penalties you owe.
You are responsible for reporting all of your income whether or not the payor sends you any form. You are required under the law to keep books sufficient to enable you to report that income.
Just pay the tax due on the notice. There may be an accuracy related penalty that you can argue about. If so, write a letter describing why you think you are not negligent and hope for the best. If you want the highest level of odds of paying the lowest amount possible, contact an EA preferably, or a CPA in your local area for assistance.
It would be a waste of time and/or money to file an amended return. It's not required once the IRS sends you the notice and there's nothing to gain.
2007-06-26 20:09:36 · answer #2 · answered by Shotgun 1 · 1⤊ 0⤋
You now have the income document. Do you agree with the IRS letter? If so, then pay the amount indicated, and do whatever else is required in the letter, and you are done.
If you do not agree with the letter, you should respond as indicated in the letter. You may want to file an amended return and pay the tax (plus penalties and interest owed).
You don't have any other options, you have to pay the tax, interest, and penalties. It doesn't matter that the W2 was sent to your friend's address.
2007-06-26 16:45:52 · answer #3 · answered by ninasgramma 7 · 2⤊ 0⤋
You need to file an amended tax return for 2005 (Form 1040X) denoting the changes which occurred from your original 2005 tax return. You will get a bill from the IRS for additional taxes owed, probably with interest, and possibly a penalty.
Check with the IRS for further guidance.
2007-06-26 16:41:09 · answer #4 · answered by acermill 7 · 5⤊ 0⤋
Well, you'll have to amend your 2005 return to show ALL of your income. Or maybe the IRS has already done that - read the letter and see what they say to do.
If you owe additional tax because of the W-2 that you inadvertantly omitted, then you'll have to pay it, plus interest and penalties.
This isn't a big deal to the IRS by the way. Just pay what you owe and get it over with. You're not in some kind of trouble with them.
2007-06-26 16:51:53 · answer #5 · answered by Judy 7 · 2⤊ 1⤋
The main thing is not to panik, simply right a letter of explanation to the irs along with filing a 1040X which is an amended tax. If you owe money trust me they will be more than happy that you are stepping up to the plate to pay, and will work out payment araingements if need be.
2007-06-26 16:42:31 · answer #6 · answered by Anonymous · 0⤊ 2⤋
Before you are incarcerated, they will work out a repayment plan.
Contact IRS Tax Attorney - Contact Alvin Brown and Associates ... tax attorney, formerly with the Office of the Chief Counsel of the IRS
www.irstaxattorney.com/articles-by-alvin-brown/levies.asp
2007-06-26 16:40:53 · answer #7 · answered by kaitken52000 3 · 0⤊ 5⤋
its no big deal....the person who answered and told you that you will be incarcerated is a fool.
just amend your return through like amscot or h&r block..for like 75.00 they will change the info for you.
2007-06-26 17:16:29 · answer #8 · answered by JennyBoBenny 3 · 1⤊ 1⤋