I am sorry. Do you have a tax preparer or accountant who can help you?
Have you talked to a tax attorney? I think they make it a point to target conservatives.
All the people who were so thrilled with Ubamacare will get what’s coming to them... straight from Uncle Sam.
They still have to audit you unless you just made a math mistake.
“Recalculate our income”
Income isn’t a calculation. It is what it is. Did you under report income or not? Did you take deductions you weren’t eligible for? If you did not, get a tax lawyer and prove it.
If you did under report, you got caught and need to pay. Pretty simple.
On what basis did they do that ?
In my situation, I had rolled over about $30,000 from an IRA into a company-sponsored retirement account. When this happens, the firm that administers the IRA is required by law to file a form with the IRS telling them that they paid out a distribution to one of their customers. This form includes all relevant information related to the taxpayer (me, in this case), including SS#, etc.
Because my $30,000 was being rolled over into a qualified retirement account there shouldn't have been any tax consequences, but it wasn't documented correctly on my tax return so my file got flagged in a routine check (probably done by computer) -- showing a $30,000 distribution to me and no rollover. So the IRS thought I was on the hook for income taxes on the $30,000 plus a 10% early withdrawal penalty (due to my age), plus penalties and interest.
In response to the initial letter from the IRS demanding payment or setting up a payment plan, I sent a letter back to the IRS explaining this, along with records showing the withdrawal from the IRA on one day and the exact same amount deposited in my company 401(k) account two days later. Within a couple of weeks the IRS sent a letter back to me telling me not to do anything or send any payments.
About a month after that, the IRS sent a final letter telling me that they had corrected my tax return and that I did not owe them a penny.
Get a tax attorney.
I’ve been through this and the attorney was able to get a $35k bill down to $5k - including fee’s, penalties, interest, and his fee.
You need a tax attorney, preferably a conservative one.
Do not wait.
yup- I fly a gadsen flag from a flag pole in my yard, constantly confront my demokrat congresswoman (nita lowey) and received a letter from NY State they were auditing me...
are you from California? my buddy from there received the same exact letter stating he owed $24K- he found the small print stating you could fight the amount owed if you had proper documentation...look hard at the letter as he said its in tiny print...
There are companies that can help you. I hear some advertise on the radio locally. They will negotiate a settlement which will usually be a fraction of the cost and well worth their fees.
The harsh penalties and fees are to get your attention. If they get many of these waived, you can simply pay off the balance owed. Secondly, find out exactly what was recalculated since they might be in error about this and you could have the entire judgement dropped.
If you really owe the money, pay it. But if this is truly fees and penalties, they can be reduced.
There is a “One Time Forgiveness” that the IRS offers. One reason you see TV ads saying if you owe the IRS they will slash what you owe.
If the givernment can tax something you own then...
YOU DON’T OWN IT.. they do..
Amazing how many cannot figure this out by themselves..
Quite literally do not care -OR- likes being a Judas Goat..
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.