Illinois State Taxes - $15 underpayment, turns into $700 bill - need advise

myself ^ | 4/19/04 | brigette

[stlnative]

I have a friend that just went through a divorce after 10 years of marriage. Some 11+ years ago when she was single, she filed her IL State return believing it was correct and she wrote out a check for the amount due. She moved after that and left a forwarding address and has filed all her tax froms each year. She then got married in 1994 and her and her husband filed all taxes while they were married (state and federal of course) They received state tax refunds for 8 of the 10 years they were married. Her social security number has never changed and has been on both her state and federal returns each year. During this whole period of time, not once has she received a IL Tax Due statement. She "just" received a notice on 4/17/04 that back in 1989 she did not pay enough IL state tax on based on her return she filed for 1989. The underpayment was $15.00, the penalties now are up to nearly $700.00 for this $15.00 underpayment and as I said she was never contacted by the IL State all these years and they never took any of the IL State Refunds that her and her husband received over the last 10 years that they were married (her social security number was on it and they knew where she lived for the last 10 years).

Again I want to stress they never contacted her about this underpayment for at least 10 years when they knew where she was. The notice she just received was the first she ever received in all these years. She would have paid the $15.00 back in 1990 if she would have known about it and she surely would have paid it during this long period if she would have known. She cannot afford to pay the $700.00 and she also feels it is unfair since they did not contact her when they could have.

[1Old Pro]

First, my condolences to this twice divorced woman.

Second, if she explains this to the income tax people she'll probably be given significant consideration.

[stlnative]

does this has the limitation answer in it? (she filed her return but must have figured it wrong and under paid by $15.00, she does not have a copy of the return she filed, but I think she can get one from the state still for a fee.)

http://www.legis.state.il.us/legislation/publicacts/pubact91/acts/91-0920.html

[ancient_geezer]

Why not do what Mr. Whitey Harrell also of IL did?

"Gaylon "Whitey" Harrell of rural Latham was acquitted by a 12 person jury of the 4 count criminal felony charges of willful failure to file an Illinois State Income Tax form. "

 

She doesn't have 4 criminal felony charges against her "YET".

Though going your way she sure could achieve it.

[stlnative]

I believe if she fights it that it will be dropped or reduced greatly. I think she feels she doesn't have chance if she fights it on her own and she knows she cannot afford a attorney. There is no way in hell I would shill out the $700.00, I would fight it, but I need to know what she has to do to fight it on her own so I can pass it on to her and possibly help her.

Folks the IRS has nothing to do with this... This is a State of Illinois issue (IL Department of Revenue), not federal.

[stlnative]

LOL...

She has always filed her taxes and has had the same SS number all this time. Like most females her last name changed due to marriage, but her SS number still stays the same. She has done everything legally, the problem is the IL State failed to find her for at least the last 10 years, while she lived in the same place and while she filed IL state taxes with her husband for the last 10 years at same address (both SS numbers are on the forms) She only has kept copies of her last 7 years of tax returns.

The notice she received on 4/17/04 is the first notice she has received about this and she had no idea about the $15.00 underpayment from her 1989 tax returns, We live in a small town of 5,000 in rural IL and she has lived here all her life. Typically her mail would have found her even if they had the wrong address as the postmaster knows who is who in this town. I can address a letter in this town without a street address with the name of the person and city, state and zip and the person will still get it.

The point is IL State probably did not try to contact her, they are on a "witch" hunt (no pun intended) and are looking for missed revenue that "they" missed over the last 15+ years ago. They are blowing the dust off old returns.

The problem is how can she fight it on her own? I am hoping someone from IL who is knowledgeable could give me some ideas so I can pass it on to her.

[dakine]

See why I hate taxes....

[codyjacksmom]

A few years back...a friend of mine was newly married. She filed her taxes that year and state and fed withheld her refunds ($3500) because her new husband owed back child support. I think that is a rip off!

[Hanging Chad]

I think she should just ignore them.
After all, what can they do about it?
If they try to garnish wages, ignore them.
If they come to arrest her, just ignore that too.

Either that or maybe file a form DD2715-H.

(...beware of legal advice from strangers on the web...)

[dakine]

What's a refund?...just kidding, that stinks....

[jamz]

Call a CPA or tax attorney.

Best advice I'd take from the web.

[codyjacksmom]

Thankfully she didn't stay with him to long. He was trouble.

[onedoug]

More tax tyranny.

Though I wish I didn't think it'll be cheaper in the long run to shut-up and take it.

[SirFishalot]

Call the tax office and ask them how to go about doing an "Offer in Compromise." The fed allows this and many states do as well. Being that it appears that your situation was not intentional, they will most likely be receptive to it as long as you approach it in a sincere manor. Make sure you let them know that you were un aware that you owed this and that you want to come to some resolution to this problem. It is important that you DO NOT admit to knowing anything about this amount owed. Sincerity is the key. The main things to remember are to always keep your calm (you will get alot further with sugar than you will with vinegar), write down the name and phonenumber of anyone you speak to, keep notes of what you discussed with eack contact, make and keep clean clear copies of anything you mail or deliver to them, and anything you mail to them goes certified. If that fails I would contact a tax attorney in the state but I really doubt you will need one.

[commish]

First thing she needs to do is contact a Tax Attorney, most will handle small claims like this for a very nominal fee. Second, is to establish just how and when they tried to "Contact her multiple times" .. She should, alone or through her attorney, request copies of all correspondences and contact attempts (reason here, have they possibly been contacting the Ex and he just ignoring it).

She will most likely end up paying the $15 and probably a small "administrative fee", but she should be able to get the amount drastically reduced at best, or get the state to accept payments at worst.

[CMAC51]

>> I would fight it, but I need to know what she has to do to fight it on her own so I can pass it on to her and possibly help her. <<

Start with your state representative and state senator. They should have people on their staffs who can advise you. It is politically to their benefit to help in situations such as this.

[JimRed]

...what is strange is she has been divorced and in at a new address for just the last 6 months and they found her, but they could not find her for at least the last 10 years while she was married and living at the same address for the last 10 years)...

So, ex-hubby dropped a dime on her?

[Bikers4Bush]

California did something similar to me. Tell her to find a tax attorney.

It would also seem that the statute of limitation on their being able to claim has run out.

My attorney wound up telling CA to stuff it and they had to. We threatened to sue since we proved that everything had been done in good faith and that they had never notified me of any problems. They dropped it.

[SirFishalot]

Ill. does have an "Offer in Compromise" program

Here's a place to start...

http://www.revenue.state.il.us/Publications/8.pdf

[Blood of Tyrants]

I would bet that the statute of limitations expired long ago. They may send a few threatening letters in an attempt to intimidate her but in the end she can tell them to stick it. She may even be able to sue THEM for mental stress caused by them threatening her.

[ought-six]

Sorry, but the friend lives in Illinois. She has no defenses from the leftists who run Illinois state government. The friend is toast.