What should I do if the IRS thinks I owe them more money then I actually do?

Good Afternoon, You likely have a few options to resolve this issue, but I will touch on the two simplest methods: 1.  File The Return for Reconsideration.  You may be able to request Wage and Income Transcripts and other information from the IRS to determine the basis for the assessment of taxes.  The information may not be readily avaialbe since the return is from 14 years ago, but transcripts can likely be obtained one way or another.  If the information provided to the IRS from third parties (W-2's, 1099-misc...) is incorrect or shows that you should not owe the tax due, then you can file a new return for Reconsideration.  Once processed, this return should reduce the balance due. 2.  Wait Out the Statute of Limitations.  Since the tax is from 2001, it is likely that the IRS Collection Statute of Limitations will be expiring soon.  The Collection Statutute of Limitations allows the IRS only 10 years to collect from the date of assessment.  If the IRS still has time to collect, then you would want to establish Hardship Status or a Partial Payment Installment Agreement until the the CSOL runs. I hope this helps.   Best regards, Adam Brewer, Esq.