I just got a notice from the IRS that I owe taxes from 1999. I don't know how this could be right. I called the IRS last year and asked them if I was good on my taxes and they said yes. So I have all this interest to pay now. Does anybody ever settle with the IRS on an amount that is less? It is only $275., so I don't think it would be worth getting an attorney. I don't know if there are other options besides making payments or paying the full amount. Help!
2007-09-25 19:34:28 · 7 answers · asked by Caroline 1 in Business & Finance ➔ Taxes ➔ United States
what if I did owe this money? Would I have to pay after almost 8 years, and if so, would a tax service be able to reduce this debt down to the original amount minus interest?
2007-09-27 07:31:19 · update #1
That sounds rather fishy unless you didn't file a tax return for 1999. The IRS only has 3 years from the due date of a return to challenge your numbers and adjust your tax unless fraud is involved or you failed to file a return. They get 6 years if there is a significant mis-statement of tax liability under limited circumstances but even then you would be safe for tax year 1999.
How did this notice arrive? What is the specific tax error that they are alleging? Where are they telling you to send the payment to? Answers to these questions will help evaluate the legitimacy of the notice -- it could be some sort of scam.
If it is legit, there's no way to get a reduction of a debt of only $275. The IRS won't even entertain an application (which is about 65 pages long, by the way) unless the debt exceeds $10,000. With a debt that small it would cost more to hire a pro to investigate it than it would be to just pay it.
2007-09-25 21:41:38 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Before you pay anything, call the telephone number that should be on your notice and ask the person to explain to you how this amount was arrived at. Get the person's name and employee ID. If what they say doesn't make sense, ask to speak to the supervisor. Ask for the computation to be sent to you in writing.
As a previous answerer said, this sounds a bit fishy, unless you failed to file in 1999. The IRS is currently working accounts from 2005. There are a lot of scams around, so don't just pay until you verify.
2007-09-25 21:55:42 · answer #2 · answered by Lauri G 2 · 0⤊ 0⤋
This could be true indeed especially if for some reason you forgot to file in 1999. Have the IRS send this to you in writing and hopefully you are saving all of your tax return documents. If you haven't in the past you may want to start.
2007-09-26 01:11:26 · answer #3 · answered by dreampo 4 · 0⤊ 0⤋
IRS is required to send a notice to delinquent taxpayers at least once a year telling them what their balance due is for each tax period. Additionally, if a taxpayer has a refunds for one year and a balance due on another, the refund is applied to the balance due year. If you have received refunds the past several years, something does not make sense.
Is the address where you are supposed to send your payment, one you are familiar with for IRS in your area?
2007-09-26 00:35:27 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I got a similar notice, and went to H&R Block (they did our taxes)...They were nice enough to resolve the issue for us.
If you've prepared your own taxes, I hope you still have access to the information you filed. Or did you get it in writing last year that you didn't owe??
Send them proof that you do NOT owe them money and they will consider the issue resolved.
2007-09-25 19:44:58 · answer #5 · answered by vm 5 · 0⤊ 0⤋
something IS fishy here. why would you have called the IRS to inquire about your tax status or "good on my taxes" as you put it? you must have had a reason so what was it and did it have anything to do with KNOWING you owed this tax from the past?
2007-09-26 00:32:35 · answer #6 · answered by Anonymous · 1⤊ 0⤋
bow to that man
2007-09-29 08:18:23 · answer #7 · answered by mr fugi 6 · 0⤊ 0⤋