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This is the third letter in the last two years saying that I owe more taxes or social security. Each time they are wrong and they accept the dispute with another copy of my original tax return.
I have an accountant and have filed taxes the same for the last 7 years. He said he has never seen them so aggressive even when incorrect. Anyone else experience this? |
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Well as long as they're accepting the explanation/original return, chalk it up as an annoyance.
The first thing I did think of was identity theft, though. If they begin any sort of aggressive enforcement, get in touch with the Taxpayer Advocate. |
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Sounds like someone there wants to F with you. Anyone in your past works there?
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Bullshit. IRS doesn't work that way. Far more likely to be random computer error or mistaken identity/identity theft. IRS personnel are too professional for what you are suggesting. |
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OP here,
Does it matter that we have a lot of deductions and a relatively high income including AMT? We also have two home businesses. One of the previous errors was an issue on their end with an incorrect W2 for a house hold employee. Although I used to grumble having to pay an accountant and thought I could do turbo tax on my own, so far the accountant has assisted me with these matters. They don't tell you that the IRS will come at you even if they are in error and an accountant will help you combat them. |
I don't believe high deductions (less than 5%) and high income. I think your home businesses probably the one. |
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Are they actually accepting your dispute?
Are you receiving a follow up notice that shows your balance due it zero for that tax year? Pay careful attention to the notices and the tax year and what exactly they are asking about. You need to make sure that they are not actually requesting you pay penalties and interest now from the first notices they sent. Yes, you may have filed your taxes, sent payments, whatever but if they found an outstanding balance, they can charge interest and unless they agree to waive it, it might still be there listed as outstanding. Also, the IRS is slow. Very slow. Like years slow. |
| This happens to us every year that we cash in incentive stock options. They seem to really not understand the difference between the sale price of the stock and the actual income gained. |
Bullshit on you PP - IRS may be targeting her for her political or religious donations. |
The IRS doesn't do that--it's pretty much the quickest way to get fired in the fed govt (and don't start blathering about the tea party nonsense--applying for a tax exemption is entirely different because you have to prove you are eligible). something sounds off about OP's story, although maybe it's just the two home based businesses causing issues. |
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| How much money are we talking about? I once got a notice saying I owed a couple of hundred dollars more (it was their mistake and I did not) but went ahead and paid it to not have to deal with the hassle. They can make your life miserable and I just paid them. |
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We have this happen frequently and yet to be our issue. DH has patience and deals with them. Individual people at IRS he always deals with are very nice. But we always expect it takes years and years to solve. Not sure what triggers it - though DH has a small very modest business. He doesn't even claim many deductions he could in case of triggering.
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Identity theft?
The home businesses? It's a pain, but all you can do is to be patient. |