QUESTION
How can I go about fighting the IRS to prove that an error was made on my taxes causing me to owe them over 50,000 dollars.I have been paying them
Asked on Aug 09th, 2012 on Taxation - Illinois
More details to this question:
Regularly up until recently I found out that I unknowly signed my tax return for 2002 stating that I owed around 40,000 dollars for one year....I am a over the road truck driver (owner operator) I made around 150,000 for the year but some how my tax preparer didn''t deduct my expenses for the year.. So 150,000 dollars was reported to the IRS as my net amount and that''s not the case.I had previously used this same preparer so ,I was to comfortable with her and I didn''t pay close enough attention to what I signed....I hope some one can advise me on some steps I can take to resolve this matter ....I have had two different tax lawyers and not one of them have helped me......I now have a clearer understanding as to where the mistake was made so please help me get this resolved .....thanks !
1 ANSWER
Tax Law Attorney serving New York, NY
1 Award
The first step would be to contact the IRS and tell them the taxes owed for 2002 are overstated. If you earned income that year, you will have to pay the taxes related to that income so setup a tax payment plan for the whole amount assessed since that will stop collections. Next have an amended tax return prepared that shows the expenses for that year, and file the return. It will take the IRS 8-12 weeks to fully process the return, but you can try faxing to the collections group so that see the "real" tax owed and perhaps even takes that into account for the payment plan before they send the return off for processing. Once the actual taxes owed for 2002 are in the IRS system, the payment plan you setup will pay them off.
Answered on Aug 09th, 2012 at 2:48 PM