They are saying I misfiled for 2007, but I didn't and now they're saying I've owed the money for 4+ years and need to pay interest on it. They did not notify me until this year of any outstanding balance.
Sound like you need to contact a tax attorney to assist you especially when you are not clear about the facts and reasons why you owe money. Get a tax attorney immediately.
Hope this helps.
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Mr. Fromm is licensed to practice law throughout the state of PA with offices in Philadelphia and Montgomery Counties. He is authorized to handle IRS matters throughout the United States. His phone number is 215-735-2336 or his email address is [email protected] , his website for more tax, estate and business articles is www.sjfpc.com. and his blog is
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This is pretty common. Sometimes it takes years for the IRS to find an issue with a taxpayer's filings. You will want to stay on top of this because now that the IRS has sent you correspondence, it is going to act quickly. As the first attorney said, it would be a good idea to fine a tax attorney, as they may be able to resolve this issue quickly and painlessly.
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The IRS sends a notice with details on why the IRS thinks you owe more taxes. While the notice can sometimes be many pages and be a challenge to read, the notice should have enough information for you to do your own calculations and check whether the IRS is correct. The notice should have the incomes the IRS is using.
If you think the IRS is wrong, there is contact information in the notice for you to send a letter and supporting documentation to show that the IRS is wrong.
There are many reasons why the IRS is wrong. Perhaps you rolled over money from one retirement plan to another qualifying plan and the IRS was not given the right forms by the trustee to show that the transfer amount is not yet taxable income. Perhaps someone reported income to you. Perhaps someone else's incomes were reported under your SSN. Perhaps the IRS is disputing the filing status you claimed.
What you should do is review the specific facts with your tax professional to see where the IRS may be wrong.
As the other answers all say, you have to stay on top of this, follow up with the IRS immediately using the contact information provided in the notice, and keep at it until you get a satisfactory answer. Most importantly, make sure you know what all of the deadlines are - write them down on a calendar you put in an obvious place, like taped to your refrigerator - and either provide what needs to be provided by any deadline or else speak with the person to whom it must be provided and get agreement to an extension of time, preferably in writing.
Also, always do your absolute best to be polite at all times with the people you talk to, particularly the few that get testy with you (there are a few individuals at the IRS who think it's their job to round up the bad guys, meaning any taxpayer whom they think owes back taxes).
In particular, go to the webpage on the IRS website where you can order an account transcript for your 2007 tax year. That will give you a basic idea of what the IRS has been doing on your 2007 tax account and where they think things stand. The webpage I'm referring to is here: http://www.irs.gov/individuals/article/0,,id=232168,00.html?portlet=105
An account transcript is a good thing to start with because it gives you an idea of what the IRS thinks is going on.
Also, and most crucially, you need to dig up a copy of your 2007 return if you still have it. That will be a most useful piece of information. If you don't have a copy of what you filed, then don't abandon hope; proving your point may be harder, but it can be done. If you had your return prepared by someone else, contact that person as well to see if they have a copy of the return they prepared for you.
Finally, if you can't get a straight answer from the people you talk to and start to feel like you're banging your head against a brick wall, file a request for assistance with the Taxpayer Advocate's office using Form 911 (which you can download from the IRS website here: http://www.irs.gov/pub/irs-pdf/f911.pdf ).
If after all of this you haven't gotten a satisfactory resolution, then you will have to seriously consider retaining a tax attorney, an accountant/CPA, or an enrolled agent with experience in this area.
You will need to contact a tax attorney as soon as possible since the IRS has different response deadlines and forms that are required for the response depending on the type of notice that you recieved. Without knowing more information about the type of tax return filed and the date that you filed the return, I cannot advise you on whether the IRS is seeking tax within the statute of limitations period, but the attorney that you hire will need to analyze this issue. If you did not retain copies of your tax returns from the years in question, you should request copies of these tax returns from the IRS or your tax preparer as soon as possible so your attorney can compare the tax returns to the IRS notices.
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