Dealing with IRS on behalf of Step Daughter

[pb4uski]

But if the IRS said that they never received your ACH from 2006, would you have a bank statement or some other document proving that payment was made?

 

[jimnjana]

Step Daughter decided to talk to IRS on her own. Her situation is like a wack a mole carnival game. She actually did make good faith attempts to pay off her tax bill, every time she did either her balance due was incorrectly calculated by the IRS or a new debt was added incorrectly. Apparently the rep she talked to yesterday was able to see at least one instance of her payment being applied to a incorrectly calculated debt. So, he told her that she needs to file an offer of compromise to resolve issue. No tax liens on her property.

 

[Texas Proud]

Step Daughter decided to talk to IRS on her own. Her situation is like a wack a mole carnival game. She actually did make good faith attempts to pay off her tax bill, every time she did either her balance due was incorrectly calculated by the IRS or a new debt was added incorrectly. Apparently the rep she talked to yesterday was able to see at least one instance of her payment being applied to a incorrectly calculated debt. So, he told her that she needs to file an offer of compromise to resolve issue. No tax liens on her property.

So, kinda goes back to my last post... this is a problem that she has done more than once.... and probably many times.... and because of this she is just getting deeper and deeper into the IRS quagmire...


If you asked me, I would say that she needs to get a handle on ALL the back taxes she owes... not just 2006.... and then make a compromise...

Also, make sure she files!!!! I had a BIL who had not filed for many years and it took me awhile to finally convince him to stop the bleeding that he needed to start filing every year.... he did....



BTW, is anyone SURE that the IRS has calculated the tax correctly They are prone to taking the position that is worse for the taxpayer and best for the country... but that can (and many times) is wrong.... I would go back and create tax returns for each year that is in question and see what is what....

 

[athena53]

BTW, is anyone SURE that the IRS has calculated the tax correctly They are prone to taking the position that is worse for the taxpayer and best for the country... but that can (and many times) is wrong.... I would go back and create tax returns for each year that is in question and see what is what....

I agree with this. I once forgot to report a stock sale (back before you could download from the brokerage) and was sent a very large bill by the IRS since they assumed I paid zero for the stock that I'd sold (the brokerage reported the proceeds to the IRS). It was actually a LT capital gain of a few hundred $$$. In 2014 I carefully input a statement showing a tax-free rollover of my 401(k) to a brokerage IRA. It had the correct code for "tax-free rollover" but the box for "Taxable portion" was left blank. So, that's what I did in TurboTax. The IRS assumed that it was ALL taxable. Again, big bill that was totally wrong.

Makes me wonder how many of the remarkable "settlements" tax advocacy firms cite in their commercials are really just straightening out genuine mistakes on the part of the IRS.

 

[EastWest Gal]

So, kinda goes back to my last post... this is a problem that she has done more than once.... and probably many times.... and because of this she is just getting deeper and deeper into the IRS quagmire...


If you asked me, I would say that she needs to get a handle on ALL the back taxes she owes... not just 2006.... and then make a compromise...

Also, make sure she files!!!! I had a BIL who had not filed for many years and it took me awhile to finally convince him to stop the bleeding that he needed to start filing every year.... he did....



BTW, is anyone SURE that the IRS has calculated the tax correctly They are prone to taking the position that is worse for the taxpayer and best for the country... but that can (and many times) is wrong.... I would go back and create tax returns for each year that is in question and see what is what....

My son had an tax issue last year pertaining to a small tax penalty owed. He and I went to the local IRS office and showed the nice folks there that the IRS was in error. The tax and penalty unless recalculated and he wrote a check for about $100. 6 months later he got another letter saying he still owed a smaller amount with additional interest due to the "delay". We went back again and sat with the same IRS worker who remembered him. This time it took over an hour and she was calling supervisors for help as the software wouldn't let her fix the problem. She's been working in that IRS office for 25 years and knew her stuff. Finally she fixed it-or so we thought. 3 months later, another letter, a smaller amount. At that point he paid it, as it wasn't worth the time or the aggravation.

Yeah, they make mistakes. So do we. The tax code is so complicated that I'll bet a lot of tax returns have inadvertent errors.

 

[braumeister]

Yeah, they make mistakes. So do we. The tax code is so complicated that I'll bet a lot of tax returns have inadvertent errors.

Even back in the day, I think a lot of these problems were caused by algorithms, not people.

I'll never forget a time in about 1975 when an order I made to a mail order company got screwed up. I got three successive dunning letters from them for a balance due of $0.00. I laughed about it, but the third letter said they were going to turn it over to a collection agency and I worried about my credit rating so I mailed them a check for $0.00 and never heard from them again.

 

[jimnjana]

If step dad wants to help I'd suggest some money to the IRS, because she probably is going to have to pay that anyway.

Step Dad is already providing her money until she is back on SS disability. On this matter, SS office admitted they lost her paperwork. At least the manager there is placing her back on the program while they sort out that mess.

If she had asked, we would have fronted her the money to file the offer of compromise.

 

[jimnjana]

If you asked me, I would say that she needs to get a handle on ALL the back taxes she owes... not just 2006.... and then make a compromise...

Also, make sure she files!!!! I had a BIL who had not filed for many years and it took me awhile to finally convince him to stop the bleeding that he needed to start filing every year.... he did....



BTW, is anyone SURE that the IRS has calculated the tax correctly They are prone to taking the position that is worse for the taxpayer and best for the country... but that can (and many times) is wrong.... I would go back and create tax returns for each year that is in question and see what is what....

After this, she is up to date. We ask if she files, I used to do her returns for her but she would rather mail them in than e-file. After her experience I think I'll be keeping my returns and associated docs for 10 yrs just in case.

 

[CaliKid]

I agree you need an experienced tax practitioner.

It's a $5k bill. A decent tax attorney would be $5k. If step dad wants to help offer $2k cash to settle the whole thing. The IRS might just take it to be done with this lady. Paying a tax practitioner would seem to be a waste due to such a small tax bill... assuming it is really just $5k.

 

[MooreBonds]

Makes me wonder how many of the remarkable "settlements" tax advocacy firms cite in their commercials are really just straightening out genuine mistakes on the part of the IRS.

I'm willing to bet that's what a vast majority of them are! No way the IRS would let you owe them $50,000 in taxes, plus interest and penalties, and then just magically settle it away for just pennies (or even zero!) 5 years after it was originally due. Of course, the firm collects a hefty % of what they save you, so you end up paying buku bucks just because people are too lazy to learn the very basics of taxes, and simple solutions (like you found) that resolve very large initial claims.

 

[FlaGator]

Step Dad is already providing her money until she is back on SS disability. On this matter, SS office admitted they lost her paperwork. At least the manager there is placing her back on the program while they sort out that mess.

If she had asked, we would have fronted her the money to file the offer of compromise.

I think this lady has a really good step dad

 

[pb4uski]

It's a $5k bill. A decent tax attorney would be $5k. If step dad wants to help offer $2k cash to settle the whole thing. The IRS might just take it to be done with this lady. Paying a tax practitioner would seem to be a waste due to such a small tax bill... assuming it is really just $5k.

You're wrong. I personally know many tax practitioners who represent clients before the IRS and could easily handle this who bill $100-150/hour and could resolve such an issue for much less than $5k.