I need help! I forgot to mail my 2005 LA state taxes, now they want 5 times the amount in fees and fines. I am ready to pay what I owed in tax, but not all those fees and fines. What can I do??
Thanks for you help!
David
2007-08-26 14:04:53 · 6 answers · asked by David A 2 in Business & Finance ➔ Taxes ➔ United States
If it was a genuine mistake, that you had full intention of paying the taxes and you filed your return properly, then you should prepare your case and present it to the State department. Here are some discussion points:
1. Have you always filed all previous returns and return for 2006 regularly and paid your taxes regularly?
2. You said that your forgot to mail the LA state taxes (check?). Do you still have the check or actually write the check? If you did write the check and misplaced it, you can take your bank statement to show that missing check number for made for LA state payment. This is to show that you always wanted to pay, and your mistake was not intentional.
3. Did you have funds to pay for the check on the date you wrote the check?
4. Find out how much interest and penalty they can charge you. Then compute how much the amount it can become. How the state tax department has reached 5x figure in around 17 months?? By charging interest only, the amount can't become 5x. Then penalty for what, a genuine mistake? Did you fail to report any income?....
Yes, I feel that an experienced CPA or enrolled agent can help you. He/she may improve your representation.
2007-08-26 17:19:21 · answer #1 · answered by MukatA 6 · 0⤊ 0⤋
1. Pay the total amount that the State is demanding. Interest and penalties will continue to accrue until the bill is paid.
2. File an appeal with the State, asking for the penalties to be waived. If you're successful, they'll refund the penalties.
Interest is seldom waiverable so you probably can't get that waived, but the penalties are what would add up to 5x the original debt. In 2 years time, the total interest would be less than 20% of the total tax due.
2007-08-27 06:38:16 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
You can write a letter of appeal to the state. If they don't agree with your arguments, then you have to pay everything they assess. That's the penalty for not paying taxes. If you don't pay, they can imprison you.
A tax attorney MAY be able to help for a fee. You can call one and ask for a free consultation. It may cost you more for the attorney to get your fines reduced that it would to pay the fines, but the first attorney visit will be free.......so you can decide.
2007-08-26 22:54:10 · answer #3 · answered by Let me steer you 7 · 0⤊ 0⤋
Contact a tax attorney. Maybe you can get some of the fines waived.
2007-08-26 21:12:19 · answer #4 · answered by Ralfcoder 7 · 0⤊ 0⤋
Pay up. You are the one that was late and by law they can add fees and fines.
2007-08-26 21:20:25 · answer #5 · answered by mister_galager 5 · 2⤊ 0⤋
Probably not much you can do but pay it, and next time remember to file.
2007-08-26 21:19:20 · answer #6 · answered by Judy 7 · 2⤊ 0⤋