I owe the IRS $4,000

[cosmo20002]

Originally Posted by DaneMcCloud

The IRS will rescind penalties IF the situation is/was dire.

They will never rescind interest.

False. Completely depends on the situation.

Stick to what's going on with Star Wars. You know shit about everything else.

[scho63]

Originally Posted by DaneMcCloud

The IRS will never, ever, ever rescind interest.

If you, as a taxpayer, can show hardship (i.e. surgery, cancer, etc.) for filing late or making a mistake, they'll likely rescind the penalty.

Otherwise, pay as soon as possible in order to avoid further interest and penalties.

WRONG as wrong can be.

If you make a deal with the IRS they will MANY times remove entire years of penalties and interest. I know personally as I got my 6 years of past due Fed Taxes reduced to 18% of what the total was.

On the other hand, most states are god damn brutal and not only do they NOT reduce your tax burden, they are very quick to confiscate 100% of your pay until their entire bill is paid. I also painfully know that first hand as I thought they were only allowed to take a PERCENTAGE each paycheck like 10-20% but I was misinformed. They can take 100%. It's brutal.

[Spott]

Originally Posted by scho63

WRONG as wrong can be.

If you make a deal with the IRS they will MANY times remove entire years of penalties and interest. I know personally as I got my 6 years of past due Fed Taxes reduced to 18% of what the total was.

On the other hand, most states are god damn brutal and not only do they NOT reduce your tax burden, they are very quick to confiscate 100% of your pay until their entire bill is paid. I also painfully know that first hand as I thought they were only allowed to take a PERCENTAGE each paycheck like 10-20% but I was misinformed. They can take 100%. It's brutal.

They also cleared it for my wife when our CPA ****ed up her taxes before we were married. She ended up getting a refund after initially owing over 100K in taxes as well as getting the interest rescinded. In her case, she sold a house for over 400K and for some reason the CPA screwed up and the entire proceeds of the house was shown as income. She actually sold the house for less than she bought it for and had to bring like 8 grand to closing to pay off the loan. So instead of paying capital gains tax on 400 grand, the amended return cleared the balance and actually gave her a refund. But it was still a royal pain in the ass dealing with the IRS and the CPA.

[DaneMcCloud]

Originally Posted by Spott

They also cleared it for my wife when our CPA ****ed up her taxes before we were married. She ended up getting a refund after initially owing over 100K in taxes as well as getting the interest rescinded. In her case, she sold a house for over 400K and for some reason the CPA screwed up and the entire proceeds of the house was shown as income. She actually sold the house for less than she bought it for and had to bring like 8 grand to closing to pay off the loan. So instead of paying capital gains tax on 400 grand, the amended return cleared the balance and actually gave her a refund. But it was still a royal pain in the ass dealing with the IRS and the CPA.

No offense, but did she even read her tax return?

I mean, holy shit, if my accountant listed my income as $400,000 dollars more than I earned, I'd hop on the phone immediately.

There's no freakin' way I'd sign the return and allow it to be filed.

[DaneMcCloud]

Originally Posted by scho63

WRONG as wrong can be.

If you make a deal with the IRS they will MANY times remove entire years of penalties and interest. I know personally as I got my 6 years of past due Fed Taxes reduced to 18% of what the total was.

Reducing your overall tax burden isn't the same as completely eliminating or rescinding Interest Due.

I have many family members that are accountant and/or CPA's. Never once has the IRS rescinded interest, for any reason whatsoever, for any of their clients.

Penalties? Yes. Interest? No.

Others who are tax accountants and/or CPA's have chimed in this thread and have verified that the IRS will not rescind interest.

Again, the IRS, not the state.

[scho63]

Originally Posted by DaneMcCloud

Reducing your overall tax burden isn't the same as completely eliminating or rescinding Interest Due.

I have many family members that are accountant and/or CPA's. Never once has the IRS rescinded interest, for any reason whatsoever, for any of their clients.

Penalties? Yes. Interest? No.

Others who are tax accountants and/or CPA's have chimed in this thread and have verified that the IRS will not rescind interest.

Again, the IRS, not the state.

Well they are wrong because I got reductions on EVERYTHING including parts of Interest and Penalties.

It didn't go to zero but it was a far cry from the starting amount.

[RockChalk]

Originally Posted by DaFace

I bet you could at least get them to forgive the interest.

The IRS will never forgive interest. It's a waste of time to ask for it.

However, they will remove penalties. I explained how to go about it in a post above.

Most good CPA firms, mine included, usually offer to help with the penalty portion if the mistake is our fault

[DaFace]

Wait, so would you have owed anything if you had included the form? You can still amend the return if it's just a matter of correcting it.

[Spott]

They will give you longer than what it says on the form. You will have to call them and wait on hold for a long time to speak with someone. You should be able to do some sort of amended return, but you will need to call them and let them know. After you do the amended return, it will probably take them a little while to stop sending you the notices. The IRS is one big cluster****. They are seriously understaffed and none of the departments communicate with each other. We paid a CPA to do the taxes and he was the one that eventually corrected the return. It will be a pain in the ass dealing with these bastards, but it sounds like you shouldn’t owe any money.

[Mr. Wizard]

Originally Posted by Spott

They will give you longer than what it says on the form. You will have to call them and wait on hold for a long time to speak with someone. You should be able to do some sort of amended return, but you will need to call them and let them know. After you do the amended return, it will probably them a little while to stop sending you the notices. The IRS is one big cluster****. They are seriously understaffed and none of the departments communicate with each other. We paid a CPA to do the taxes and he was the ones that eventually corrected the return. It will be a pain in the ass dealing with these bastards, but it sounds like you shouldn’t owe any money.

This is SPOTT on, they don't care. Here is a cautionary tale. We found out we owed $10,000.00 for a penalty on an IRA loan I took out to put a down payment on building our house. Long story short, you have the length of your house loan to pay it back without penalty but the company doesn't have to set up a payment plan with you. It's on you. Long story short we owe and they don't care.

1) DO NOT hire one of the tv companies offering to bail you out. They want $2000.00 up front for you to fill out endless paperwork so they can submit it to the Internal Renal Service so
a) That can stop IRS calls, letters etc...
b) You can be set up on payment plans over a few years. (we are paying 200.00 a month.

2) NOW, if your tax preparer is not some discount deal they have the same number and can make the IRS call for you asking for a stoppage on your case and a new file on that year.
3) If they cant do that go to an reputable preparer that can immediately make that call and file your new file on that year. Just call around and ask if they can do those two things.
4) Calm down, it's scary but will linger on for years. It's not the end of the world and life goes on.

Good luck from a family that's been there done that.

[Spott]

Originally Posted by Mr. Wizard

This is SPOTT on, they don't care. Here is a cautionary tale. We found out we owed $10,000.00 for a penalty on an IRA loan I took out to put a down payment on building our house. Long story short, you have the length of your house loan to pay it back without penalty but the company doesn't have to set up a payment plan with you. It's on you. Long story short we owe and they don't care.

1) DO NOT hire one of the tv companies offering to bail you out. They want $2000.00 up front for you to fill out endless paperwork so they can submit it to the Internal Renal Service so
a) That can stop IRS calls, letters etc...
b) You can be set up on payment plans over a few years. (we are paying 200.00 a month.

2) NOW, if your tax preparer is not some discount deal they have the same number and can make the IRS call for you asking for a stoppage on your case and a new file on that year.
3) If they cant do that go to an reputable preparer that can immediately make that call and file your new file on that year. Just call around and ask if they can do those two things.
4) Calm down, it's scary but will linger on for years. It's not the end of the world and life goes on.

Good luck from a family that's been there done that.

It was a pain in the butt when we did it. It took a lot of phone calls, waiting on hold for an hour to speak to someone and then being disconnected, speaking with multiple departments, etc. We only paid a small sum of interest to show that we were making payments, and we eventually got that back when filed the amended return. The CPA we used was basically worthless and we ended up doing all the leg work, even though it was completely his ****up that caused the whole thing.

[ping2000]

Tell the IRS guy you will let him put it in your wife's ass to make it go away. If he is gay you might have to take one for the team.

[Titty Meat]

Lock him up.

[Miles]

I’d check with the tax preparer first to see if they will help and also confirm it’s taxes you legitimately owe. If it’s something you do owe and the interest and penalties are not much, probably not worth the headache to try something other than just pay and move on. Maybe the prepared will reimburse you for interest and penalties because of their error.