Received a letter from IRS, say I owe $4,000 in tax, interest and crap from 2001. I don't even recall filing a 2001 tax return. And I did not work that year. Can they do this? I do not even know what questions to ask them if I called.
2007-08-01 19:10:48 · 4 answers · asked by Ellen B 2 in Business & Finance ➔ Taxes ➔ United States
Consider contacting the IRS and ask for a transcript of your 2001 taxes, an extension of time to respond to the letter.
This should give you an indication of where they got the information and you may remember what occurred. Consider also, contacting a CPA or tax practitioner. CPA will be better and give them power of attorney to discuss your return.
Sounds like they may have tried to contact you at the address of record. You indicated you did not file a return for that year.
I am surprised you do not have a tax lien. You may need to check with them on this issue also. You may need to file a return to reduce the tax obligation/penalties/interest. Did you sell a house that year or stock? You may have had a gain from the sell or if you had a mutual fund, it is possible that you had some capital gains.
Yes, they can calculate your return from the information they have on file and pursue you for the tax and "crap".
You need to act rather quickly to reduce any more interest.
I wish you the best.
2007-08-01 19:37:36 · answer #1 · answered by oldcorps1947 6 · 0⤊ 1⤋
The irs should have sent with the letter the detail as to why you owe them $4,000 in tax, interest, and crap from 2001. You say that you don't remember filing a 2001 tax return, and that you didn't work for that year, but they must have had some kind of income reported to them. If you didn't file a tax return for 2001, but they have income for you, they will prepare a return for you, and send you the bill as they have calculated. What you need to do is contact them (there should be a phone number to call on the letter), and ask them for a copy of what they have for your 2001 income, if they did not include in the letter as to what income they have reported to them for you.
2007-08-02 02:06:34 · answer #2 · answered by Anonymous · 1⤊ 0⤋
You did not work in 2001, but did you have income? The IRS has income attached to your Social Security Number and no record of taxes paid on that income. Since you did not file a return, the IRS can go back to 2001 and assess taxes on you.
You can call the number on the letter and ask for more information. They can send you a summary copy of the income documents they have.
If you agree that you owe tax for 2001, make payment arrangements. If you do not agree, retain a tax representative to work on your behalf with power of attorney to attempt to get the amount owed reduced. You would need to retain a CPA, enrolled agent, or attorney.
2007-08-02 02:15:10 · answer #3 · answered by ninasgramma 7 · 1⤊ 1⤋
The letter will say where they think you had the income. What they sent was probably several pages long - read through it all. If the income they show wasn't yours, call them - you might have been the victim of identity theft. If you sold stocks or something like that, you might have been required to file, but might not owe anywhere near what they think you do. If you had "under the table" income that year, they might have caught up with you.
The letter gives you the choice of saying "I agree" and paying, or saying "I disagree" and saying why.
Be sure to respond by the deadline in the letter.
2007-08-02 02:44:36 · answer #4 · answered by Judy 7 · 1⤊ 1⤋