Discussion:DEALING WITH THE IRS
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Discussion Forum Index --> Tax Questions --> DEALING WITH THE IRS
| 2 March 2006 | |
| My client refund for 2004 $5,165.00 was applied for tax periods 01,02,03 and,
according to the letter from the IRS the amount that she will receive as refund is: $2,947.00 But, client told me that by phone, she was told that this refund will be ,also, applied to prior years. I have the Sh 2848 Power of Attorney, that they sign - an EA ,but no experience dealing with the IRS. Question: My first step- I'm guessing: 1- Call the IRS to know what is going us. Questions: First: Is there any way to fight tax due on years: 00, 01,02. What about prior years? | |
DR BRISKET (talk|edits) said: | 2 March 2006 |
| Depending on where you are located, if there is a local IRS office near you, I would recommend you take the Form 2848 and all of the correspondence the client has, and personally go to the IRS office. An IRS agent can pull your client's information up on his/her computer screen and should be able to tell you exactly what is going on. Chances are, there are some significant penalties and interest from the earlier tax years, and some of the remaining 2005 refund will be used to clear these amounts. If you can't go to an IRS office, the next best choice is to correspond in writing to the IRS office that is handling the case. When you correspond, be sure to send them a copy of the signed Form 2868. Good luck. | |
| 2 March 2006 | |
| Also know that you can frequently get them to waive the penalties but never the interest (speaking from my experience). Another option is an Offer in Compromise to clear the entire liability. | |
| 3 March 2006 | |
| If you owe back taxes, the IRS will apply your refund to thoses years. Why would they refund you money if you owe them> | |
| 3 March 2006 | |
| Finally, I can talk with an IRS officer. Situation : The husband is who owes the money. Long time ago- and I'm guessing now- he failed to file a tax return. He owes around 3Ks
My solution: They can file MFJ , and she will apply for "Injured Spouse" In that way, getting the EIC she will get at least a couple of thousands . Also, I'm pretty sure that the guy can still file an amended return. The taxes were filed last year. And, latter, instalment agreement. To waive penalties. What are the requirements? | |
| 5 March 2006 | |
| Get a power of attorney signed by client. Fax it to IRS and/or enter it in e-services. Call the professional hotline, be sure you have a copy of the fax available...they will want it faxed to them when you talk with them.
Explain the situation and ask if they would be willing to waive the penalties if the taxpayer was able to pay the liability in full minus the penalty. I have found that the answer is usually yes. Back it up with a fax to the agent you spoke to that summarizes your conversation. (Be sure to include the agent's name and ID number.) Attach a copy of this fax to the payment made by the client. Are you an E.A.? | |
| 4 May 2006 | |
| Yes-EA Taxea. Effective 21st May, 2003.- I was taking "Anykind Return with Block when I took that test in FL, Plantation. I was unemployed, and spent maybe 400 hours or more studying .
But I have just 3 years experience with personals returns-intermediated levels Started with VITA program, 2 years with Block- It looks that I am smart taking test, and my business degree gave me a hand to understand corporations and partnerships. | |
