What can I do to correct income tax errors when the original income tax was completed and sent by an agency without my approval?

North Port, FL Viewed 92 times. Posted 9 months ago in Tax

Both my 2005 and 2006 income taxes were prepared by an agency. All I did was fax my tases to them. They completed them and submitted to the IRS without my signature or review. 2 years later I get notices from the IRS saying that I owe nearly $8000 for both years of over payment. They then send me the audit and I see that the person who completed my taxes itemized my deductions and lied about everything to get me a large refund. I did not authorize this. In all my attempts o contact this agency, they do not return my calls or provide any assistance. PLease help. What are my options. I feel scammed and now in debt to the IRS???? - Is this your question? Add additional information

Answer this question Add to list

Answers (2)

Lucy Marie Ludwig

This attorney is licensed in California. Posted 8 months ago.

There are several issues to deal with.

First, I would suggest filing amended tax returns for 2005 and 2006 to address the incorrect information reported. The IRS will assess these returns and calculate additional penalties and interest to the balance. It will take roughly 8-10 weeks for the IRS to process these returns. Once the correct balance is assessed, you can proceed with a resolution (Full pay, Installment Agremeent, Offer in Compromise, etc). Please note that you will probably owe both on your Tax Return and the money received (if any) from any refund.

Second, with regards to the penalties and interest calculated on 2005 and 2006. A penalty abatement petition may be a good option for you. You will have to prove that there was "resonable cause" which is demonstrated when you use "ordinary business care and prudence" in determining your tax obligation. You may be able to have the penalties reduced or eliminated. Remember to support this petition with documentation regarding the agency who submitted your Tax Returns without your permission.

Ludwig Law Firm, A.P.C.

Mark L Rosenberg

This attorney is licensed in Dist. of Columbia and 1 other state. Posted 6 months ago.

You should definitely report this to the IRS, as they maintain a list of companies that do this. However, you are liable for the taxes, since you did receive the refund. You should contact the IRS, and work out a payment plan with them, and explain that you were a victim of this company.

Mark L. Rosenberg