Posted on 07/29/2021 6:40:37 AM PDT by ProtectOurFreedom
We filed our federal taxes electronically in 2019. We had a lot of charitable contributions which required a separate page to list them. The electronic submission system had no way to attach the second sheet.
IRS wrote to us saying we had to justify the contributions so we sent them the second page that was omitted from the original return. Then IRS wrote to us AGAIN saying send us the second page. So we sent it again. Now they have written to us saying if we don’t pay them the additional tax we owe them (about $1,000) by August 5, penalties and interest will start accruing. We do not owe them the money and it is their mistake that they have not acknowledged the form we sent them twice. We did not send our previous responses via registered or certified mail, so we have no confirmation of receipt by IRS.
My wife wants to pay them to avoid penalties and interest and get them off our back. I looked at the procedure for contesting an IRS mistake and it is awful involving a court. Hiring a tax lawyer is out of the question because they will burn up more than $1,000 in a heartbeat. If we pay them now, I figure that money is gone and we will never get it back.
(Excerpt) Read more at freerepublic.com ...
“With wives you can be right or you can be happy.”
Good words to live by! That’s my guiding light today.
I will check with him; thanks.
Amazing, isn’t it? The economy was shut down for a year, but every business in America was experiencing “higher than expected” call volumes. What business in the past 20 years HASN’T been experiencing that?
At some point, you’d think they would learn their lessons and be able to get their forecasts of call volume dialed in correctly. If they can’t forecast call volume after years or decades of experience, are they good at ANYTHING?
Did you use computer software to generate your tax return, eg turbotax, etc? I would think the software would select the standard deduction which is quite high now.
The maximum charitable deduction is only $300.
Maybe send a full paper copy of your tax return (not just the missing page), and a copy of whatever letters they are sending. Send it with signature requirement. Then just wait, and don’t worry about their threats.
We had a deal a few years ago, and they wanted us to pay another $250,000 in taxes. Eventually it got worked out, and they even sent us money back, but it was quite a nerve-wracking time.
Good luck.
Call them. They have people that answer phones and help with problems. Taxes are complicated and they can’t do everything, but they genuinely do try to help.
Another thing you could do is go ahead and PAY now, but then submit an AMENDED RETURN in paper mail for that year, and you might get your money refunded back, but not worrying about court and threats.
BINGO - in most cases involving detailed information omissions a visit to the local will clear it up immediately!
“This is Form 8283 for 2020:
https://www.irs.gov/pub/irs-pdf/f8283.pdf“
This seems to apply to “Donated Property”, not cash donations to 501C3 non-profits.
If you have a phone, contact your local Congressional Representative and ask for their help. Your tax dollars pay for Congressional staffer to help you with this sort of nonsense.
The Taxpayer Advocate Service is an independent organization within the IRS and is your voice at the IRS. Our job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights as a taxpayer. We offer free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. Remember, the worst thing you can do is nothing at all.
TAS can help if you can’t resolve your problem with the IRS and:
Your problem is causing financial difficulties for you, your family, or your business.
You face (or your business is facing) an immediate threat of adverse action.
You’ve tried repeatedly to contact the IRS but no one has responded to you, or the IRS hasn’t responded by the date promised.
Each state has at least one Local Taxpayer Advocate who is independent of the local IRS office and reports directly to the National Taxpayer Advocate. Select your state on the map below to find the phone number and address of the Taxpayer Advocate Service office nearest you.
If you qualify for our help, we’ll do everything we can to get your problem resolved. You’ll be assigned to one advocate who will be with you at every turn.
A CPA can help for a fee. Put all facts in a letter and send it certified mail.
You can also contact your congressman.
https://www.irs.gov/advocate/local-taxpayer-advocate
The irs exists for three reasons:
1. To give jobs to those favored by government. It’s a form of reparations.
2. To keep the public in fear, and therefore in willing submission to the great and powerful authority.
3. To be used for retribution against non-conformers.
The tax laws are written so as to be without any valid interpretation so they can be applied arbitrarily at the whim of the irs agent. Even with a herd of accountants, you can be sure you will one day run afoul of regulations and be subject to a fine. If you are Joe Ordinary Person, you tremble when you receive a letter from the irs. Even if it’s about the “stimulus” check. That’s the way they like it. The irs is not your friend, even if the agents wear suits and ties.
Your comment: “We don’t owe anything. They are not acknowledging the receipt of the documentation they requested.”
If they sent you a letter and assessed an amount, then the IRS considers that you owe it. The IRS can file a federal tax lien or send you a seizure notice. Pub 594 https://www.irs.gov/pub/irs-pdf/p594.pdf You need to deal with it and keep copies of everything.
Realize that IRS is short staffed and not all understand tax code. CPAs get tmore respect than taxpayers.
IRS Tax Tip 2017-49, April 18, 2017
The IRS mails millions of pieces of correspondence every year to taxpayers for a variety of reasons.
Below are some suggestions on how to best handle a letter or notice from the IRS:
Do not panic. Simply responding will take care of most IRS letters and notices.
Most IRS notices are about federal tax returns or tax accounts. Each notice deals with a specific issue and provides specific instructions on what to do. Careful reading is essential.
A notice may likely be about changes to a taxpayers’ account, taxes owed or a payment request. Sometimes a notice may ask for more information about a specific issue or item on a tax return.
If a notice indicates a changed or corrected tax return, review the information and compare it with your original return.
There is usually no need to reply to a notice unless specifically instructed to do so, or to make a payment.
Taxpayers must respond to a notice they do not agree with. Mail a letter explaining why there is a disagreement with the IRS. The address to mail the letter is on the contact stub at the bottom of the notice. Include information and documents for the IRS to consider and allow at least 30 days for a response.
There is no need to call the IRS or make an appointment at a taxpayer assistance center for most notices. If a call seems necessary, use the phone number in the upper right-hand corner of the notice. Be sure to have a copy of the tax return and notice when calling.
Always keep copies of any notices received with tax records.
Be alert for tax scams. The IRS sends letters and notices by mail. IRS does not contact people by email or social media to ask for personal or financial information. The IRS will not demand payment a certain way, such as prepaid debit or credit card. Taxpayers have several payment options for taxes owed.
For more on this topic, visit IRS.gov. Click on the link ‘Respond to a Notice’ at the bottom center of the home page. Also, see Publication 594 PDF, The IRS Collection Process. Get IRS.gov/forms at any time.
To make a payment, visit IRS.gov/payments or use the IRS2Go app to make a payment with Direct Pay for free, or by debit or credit card through an approved payment processor for a fee.
Taxpayers should keep a copy of their tax return. Beginning in 2017, taxpayers using a software product for the first time may need their Adjusted Gross Income (AGI) amount from their prior-year tax return to verify their identity. Taxpayers can learn more about how to verify their identity and electronically sign tax returns at Validating Your Electronically Filed Tax Return
You can request an appeal: https://www.irs.gov/appeals/preparing-a-request-for-appeals
When you respond to the first written correspondence from the IRS, make sure you include a copy of the original IRS correspondence AND make sure you mail the response to the address listed in the IRS letter.
Sending additional hard-copy returns copies to any IRS office will only add to the confusion. When somebody opens that envelope, they will start another file which could/will trigger more written correspondence to you from other offices.
When you call, prepare to spend some time on hold. If the person who answers the phone can't find a copy of whatever you said you sent in, that just delays the process.
You can have a professional tax preparer contact the IRS on your behalf. That will usually require a fee from the professional, and a signed Power Of Attorney (POA) so the professional will be able to discuss the matter with the IRS rep they speak to. Another advantage of taking it to a paid tax preparer is that they will review the situation before calling anybody and be able to confirm your statement or explain why you are incorrect and why the IRS is looking for money or additional documentation.
Finally, remember that any free tax advice you get from the internet is worth what you pay for it. Good luck.
Thanks. That’s exactly what we decided to do.
I’ll have to check w my wife to see if we were able to submit the additional pages for charitable contributions to CA. Thanks for that info about IRS notifying FTB.
In our case, they want $1,000 more tax (which we don’t actually owe), so even a quick consultation with a tax attorney is going to gobble up more than that.
My wife just filled me in on the details. She sent the IRS our supplemental charitable contributions pages, but she forgot to send them the IRS 8283 Noncash Charitable Contribution form. She has twice responded to them with both the 8283 AND the supplemental Excel pages we use to document all the contributions. So it was our mistake entirely. But it’s frustrating we have twice complied with their demand for both the 8283 and supplemental pages, but they aren’t entering the paperwork.
I just talked to my wife and it turns out I got the story wrong. We have always submitted the 8283 together with supplemental pages when we ran out of room on the 8283. In 2019, she sent the supplemental pages with our return, but forgot to include the 8283. So the mistake was entirely ours.
She has subsequently TWICE sent them the 8283 AND supplemental pages, but they are not entering that information into our account and keep demanding we send it in.
You are right — it is not complicated at all from our end. We’ve done it for 40 years.
This is a nasty lesson — don’t forget to include all the IRS forms with your return.
You wrote “The IRS is hopelessly behind in their paper communications and it is causing a lot of stress for filers who have received notices and then no acknowledgment when they do what is asked and in fact receiving more notices.” That is EXACTLY what is happening to us. They are so messed up that each letter requested that we send the information to three different states - CA, MO, and OH.
Thanks, Starboard, for thanking everybody.
Let me also say thanks to “everyone who posted helpful info on this thread.” Got some great ideas and it’s always good to hear from others who suffer similarly.
Good luck.
5.56mm
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