Posted on 05/30/2014 4:37:35 AM PDT by Luke21
My wife and I are in our mid fifties. We are grandparents. We have tried to play by the rules. Yesterday, I came home from lunch to find his and her notices in our mailbox from the IRS. The fiends have recalculated our income from a few years back and now suddenly want over 21,000 dollars in fees and penalties. They don't even audit you anymore. They just recalculate and demand payment. This is how they operate.
So if this thing is worked out, we will pay five hundred bucks a month to the IRS for most of our remaining working years, all the while being told we are white privileged to work and be slaves. And there is nothing to stop them from doing it again and again to me or to you. This government is truly monstrous.
It's worth noting that in my case there was no incompetence on the part of the IRS. The incompetence was on the part of the taxpayer (me). LOL.
Absolutely. We were hassled in a like manner a few years ago. They claimed we owed them $75,000. We engaged them and eventually won because they were wrong. It took over a year and a half, and it was not fun.
In our case, and we can't prove this, we think we were harassed for our donations.
I can't speak to your case but don't simply accept what they are saying, check to see what their claims are, check carefully and see if they are correct, there are ways for you to overcome this, just don't allow them to run you rough shod into the ground.
I got one of the same two years ago. It aid I owed an additional $1100 or so. I just paid the crooks because it wasn’t worth trying to reason with criminals.
Great thread. Much good advice and first-hand knowledge.
DISMANTLE the gestapo and much more of FEDGOV.
http://www.usa.gov/directory/federal/index.shtml?query
He has erected a multitude of New Offices, and sent hither swarms of Officers to harrass our people, and eat out their substance.
Thanks for posting your predicament, Luke21. Keep us informed.
I’d see a tax lawyer ASAP.
That’s what your accountant is for. I used to routinely get those recalculation letters. I just faxed then to my CPA and he took care of it.
Send them a letter saying you have been contacted by a fraudulent party demanding you pay money. Tell them you don’t owe them anything and you think someone is using making false letters trying to rob you of money. Send this by certified mail.
This should give you a few months to lawyer/accountant up and figure out what the hell went wrong. I, personally, have been sent letters by fraudsters saying I owe them back taxes - I contacted the IRS and they said yes, it was fraud and I have filed correctly every year.
They do this to my wife and I every year. Criminal organization. We have a CPA who does my business and personal taxes.
If your original return was prepared by an accountant, go back to that accountant and review the IRS letter with them. A good accountant will find the mistake right away.
If you prepared your return yourself, find an accountant, collect your return and supporting documentation, and take it all to him/her. Tell them your story up front, and ask if they have any experience in dealing with the IRS, for other people in your situation. If they don't, I suggest moving on to another accountant -- you don't want someone inexperienced.
Tax attorneys are expensive, so I don't recommend one unless you confirm you really do owe the money. Then, you can have them negotiate with the IRS. Just forgiving any accumulated penalties would substantially reduce what you owe.
IMO #1) you shouldn't panic...#2) contact a CPA...if not a tax lawyer.
You received a cp2000 letter. It is a desk audit. Most that I see from non-clients are wrong. Many are from stock or bond sales. Have pro look at it.
Be careful with dates, you may have to file tax court petition
This sort of thing is far more likely if you’re a sole proprietor or own a business. Even more so if you fall behind in filing your returns. If there’s a letter regarding intent to garnish or levy with a tight deadline, you’ll likely have to pay or agree to a payment plan under protest to avoid attachment, lien or seizure. My business went downhill and I shut it down in 2008, keeping the corporation active in the hopes of getting started again at some point. I got a letter from the state re-estimating my income for that year based upon prior years. I paid it, had no real option at that point, and I’m still trying to get it back. It was not owed under any scenario. There was a loss for the year and a big one no matter how you slice it, that’s why I shut it down. Should have dissolved the corporation in hindsight.
Was this incident pre-Obama or after he was "elected"?
Liquidate and move to Uruguay, IRS can’t reach into that country.
First, some bona fides, I am an Enrolled Agent (EA) and thus can say that I do know some tax knowledge. From what has been said, it appears that you have received a CP2000 “Demand Letter” for a filed tax return that the IRS COMPUTER thinks is in error. In most cases, at this point, no human being has actually done a single thing with your case.
The first thing YOU should do is to see what tax year is being questioned, pull that return from your files and try to go to where the IRS computer says that there is an error. If you can see an error, then does it match you or the IRS? If it is against you, then my best suggestion is to contact a Tax professional. Many times we find that by looking at the tax return as a new one, we can find offsetting claims to reduce the damage. Then follow the guidance and see if you can get the best treatment of a valid debt. Do not procrastinate, you need to do this within the time frame specified in the letter, at least to notify the IRS that you are “in work” on the problem.
If on the other hand, it is an IRS error or misunderstanding and you have the records to prove it, check to see if there is a local IRS office that you can go to. If you can prove it to them, they should be able to resolve it right there. Or you can go to a paid tax preparer route and have them be your contact for the IRS. For them to be legally bound to your interest, they should be an EA, a CPA or a Lawyer. Like above you need to get this underway quickly to stop further IRS letters.
I got a $10,000 dollar bill from the IRS earlier this year. Either the mistake is theirs and you should contest or the mistake is yours and you pay. It really is a binary solution set.
In my case, I was misinformed about the tax law and I had to write a very painful check, then I wrote another one to the state, hoping to avoid penalties and interest with them.
I haven't done a tax return as a paid preparer for four years...don't miss it one iota.
LOL...I earned my own letter last year. In my haste, I didn't correct the entry for my son's SS #, and they caught it. I made the correction, sent them a revised return, and that was that.
Turns out for 'other income' the IRS-trained tax preparer had used the word "Fiduciary" for the fee I charged my late parents estate as Trustee.
I wrote 'em back explaining that I'm not a professional fiduciary - one shot deal since the parents only died once. Got a clearance letter and a check back within a few weeks......but indeed it was better to pay them upfront, and then dispute it.
I never got an explanation for mine, but I didn’t push it either.
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