Your Blogger
Hi, I’m John Harris, President of JK Harris & Company, LLC. I’m very proud of the company I founded in 1997. I established the company because there was an under-served segment of the population that couldn’t afford the hourly services of a CPA or tax attorney. So, we developed a high-volume process that allowed the company to offer affordable services. We then quickly became the dominant force in the industry. In fact, we have grown into the nation’s largest tax representation firm. We help a lot of people every year with their IRS problems. We have an outstanding record of helping people and getting results.
But, we have people who complain about us. And those complaints can be very loud and visible when they are posted online. In fact, some people have gotten the idea that most of our customers complain. The fact is, while we’d like everyone to be happy with our services, the complaints you may have seen on the internet and other sources represent less than 1% of our total client base! But with the internet, those who want to be loud can be loud.
That’s one reason for writing this blog. To let those who are getting information about tax resolution on the internet know the truth. They should know the truth about our company, about how we work, about our services and fees, about how and why some things go wrong. And they should know about the great results we deliver for our clients and how happy they are with our services even if they don’t shout about it online.
On this blog my staff and I will talk about a wide range of tax resolution issues. We’ll also talk about what you should expect from our company–and what not to expect. Most of all we’d like to engage in a discussion. So please use the comment opportunity on this blog to let us know what you think. BUT PLEASE read the Guidelines page first so you know what is appropriate to post on this blog and what is not.
December 16, 2006 at 12:29 pm
what can the irs do, if you owe money from last year less than a 1000.00 and you file this year..when do they start searching for you and accounts to ach the amount owed and do they set up payments on it. help. i’m worried about it
December 21, 2006 at 12:17 pm
Dottie, thanks for your question. One of our Enrolled Agents in our Licensed Taxpayer Representatives Department is providing the answer to your question. The answer is a bit lengthy, but we want to make sure that you have all the information you need. Thanks for participating in the blog.
An installment agreement could be setup at anytime for the amount of the balance due for 2005. If an installment agreement is not setup or the balance due is not paid in full the following sequence is taken by IRS.
Once the 2005 tax return has been processed by IRS reflecting the balance due, a CP-14 notice would be sent to the taxpayer showing a balance due asking for payment. Five weeks after the CP-14 is sent a second notice, CP-501, will be sent reminding the taxpayer of the balance due and ask for payment. Fives weeks after the CP-501 is sent, CP-503 is sent again reminding the taxpayer of the balance due and requesting payment.
At this point the IRS has sent the taxpayer three notices each five weeks apart notifying them of the balance due and requesting payment. If the taxpayer has not responded to any of the above notices, CP-504, “Urgent! We intend to levy Certain Assets.” The CP-504 is sent by registered mail requiring the taxpayer to sign for it.
The CP-504 is just a registered letter notifying the taxpayer that if the balance due is not paid, then the IRS may levy the taxpayer’s assets—wages, bank accounts, or accounts receivable. Approximately 30 to 45 days after the date on the CP-504, the account is sent to ACS (Automated Collection System). ACS at this time could issue a levy against the taxpayer.
Sometimes a 1058 letter, “Final Notice Reply Within 30 Days”, is sent to the taxpayer, but this does not happen in all cases, ACS can levy after the CP-504 has been sent.
There is the possibility that no levy will be issued prior to the taxpayer filing his or her 2006 tax return. With the new aggressive policy of the IRS to pursue collection of taxes owed to the government, the chances of being levied prior to filing the 2006 tax return has greatly increased.
If the taxpayer has not filed their 2006 tax return by April 15, 2007 and a levy has been issued for the 2005 balance due, the levy cannot be released until the 2006 return has been filed.
The balance due would not affect the filing of the 2006 tax return. If the 2006 tax return were filed showing a refund, the amount of the refund would be used to pay the 2005 tax liability including penalties and interest.
December 28, 2006 at 4:54 pm
I lost my receipts for the 2004 tax year and the IRS has disallowed all my deductions.
Is there a way to appeal this decision by showing evidence that my 2003 and 2005 tax years where similiar to the 2004 tax year?
I have the receipts for 2003 and 2005.
Any advice would be appreciated!!
January 3, 2007 at 4:52 pm
Thanks for your note. I received some help on this from one of experienced Licensed Taxpayer Representatives who is a retired IRS agent with over 30 years experience. She said that you will probably not be successful in appearling the case based upon only estimates from prior and subsequent years. She said that you need to contact the appropriate third parties and secure documentation for the year under examination. If you can’t secure copies of all the records, but can fully document a good portion of them, the IRS might then go ahead and accept the balance based upon credible oral testimony or an estimate based upon prior or subsequent years…but remember, it’s their call.
January 13, 2007 at 7:29 pm
If the IRS garnish your wages for taxes you owe year 2005 and the IRS would not let you make payment arranage to pay the taxes because you had not file taxes for several years prior, will the IRS release the garnish levy if you file the previous years taxes if you took them to one of their local office? Also, is there any chance the IRS will let you make payment arrange on the previous none file years and will they give back the money that they have already garnish.
January 17, 2007 at 11:41 am
The answer to your first question is, generally speaking, yes. They will ask you to enter into an Installment Agreement, and under normal circumstances, they’ll release the levy. As to the second question, unfortunately, the answer is no. They will not give back the money they have collected. Hope this helps you and thanks for participating.
January 21, 2007 at 3:50 pm
I pay childsupport on 1 of my 2 kids but I am behind some . If I file my son will they still take all my refund?
January 27, 2007 at 8:26 pm
For the last three years after I file my taxes I get letters from the IRS stating that I need to check the SS# on my daugher because it was used for the EIC and Tax child credit on another return. I have my daughter 12 months of the year, she does not live a single day with her mother- her mother jumps around from one house to another and doesn’t even have an address. So this year she got her return filed first and my return was reject when I filed on line through tax act. I called the IRS the last 2 years and talk to a rep and they tell me I am filing correctly and if they need further information I will get a form and documentation in the mail Ihave never received anything. Now I have been rejected and I guess the x-wife got away with claiming the EIC and tax credit and I am not going to let this happen how do I get my money and get action taken against my x-wife for filing with fraudulant information ?
January 29, 2007 at 3:58 pm
If your ex-wife has claimed your daughter and you are divorced and she filed prior to you, then the IRS will accept her return as long as it meets all the requirements. I suggest that you write to the IRS, explaining your situation, and providing them the child’s name, social security number and any other supporting documentation that your daughter is who you say she is and that you are in complete support of your daughter. The IRS should remove your daughter from your ex-wife’s tax return and place her on yours, providing you with the ability to claim her as a deduction. You might even want to call IRS, again, to explain your situation. They should provide you a form number to submit with your letter. These forms should be available on their website (www.irs.gov) or any of their local offices. I would suggest getting the form yourself as opposed to waiting for IRS to send it to you just to speed up the process. Hope this helps.
February 1, 2007 at 4:07 pm
If you have been referred to the IRS by the Domestic Relations Court in the state in which you live in, your refunds will be taken until all arrears are paid. Thanks for participating.
February 20, 2007 at 2:35 pm
Hi, I owed the IRS. I want to know if I can get some of the penaltys taken off or even can you help decduct have my balance with them.
February 22, 2007 at 9:29 am
We do help taxpayers in this situation, however, there are certain criteria or requirements that must be met and the IRS scrutinizes these requests very carefully. Any penalties waived will have to meet the resonable cause criteria used by the IRS. That is, did the taxpayer exercise due care and prudence and then were still unable to file on time or pay on time. Any documentation or proof that a taxpayer can provide is most helpful. If the answer is yes, in that the taxpayer did exercise due care and prudence and then were still unable to file on time and pay on time, their is a resonably goodchance of getting the penalties abated, unless there are more than two years involved. Hope this helps you.
March 2, 2007 at 3:42 pm
is there anything that can be done if the state seizes a buisness for past due sales tax or does one just have to come up with the money or loose the buisness.also how long does one have to come up with the money
March 6, 2007 at 9:25 am
State sales tax organizations are very tenacious in their collection processes. If you have a need to retain the property, you must pay the tax or they will sell it. As for your second question, that will be determined between you and the taxing authority. They will work with you to a limited degree because they want to collect the money, not sell the property.
March 25, 2007 at 4:48 am
I owe back taxes and have now had a tax levy placed against, I want t purchase a home. I also am on a payment plan, can the total amount owed be negotaited so that I pay the back taxes off, as it stands the payment plan is setup until 2015, I will never pay this off I will probably owe fr th 06 tax period.
March 26, 2007 at 3:21 pm
The tax has to be paid before the lien is lifted is the short answer. If you qualify for an offer in compromise and the offer is fully complied with, i.e., all payments are made as promised in the contract, the lien would be lifted within 30 days of receipt of final payment (if you pay by check). If you are able to pay your offer with cash, your lien would be lifted immediately.
March 26, 2007 at 5:36 pm
in the case of a nonfiler how far does the irs go back to make you file returns or seek back taxes for? also for nonfilers does the irs tend to prosecute for not filing?
March 27, 2007 at 1:24 am
Hi. I am a resident alien that filed taxes through an agency called Taxback.com which is not a great company. They gave me my refund and got their percentage. A while ago I got a CP 501 notice from IRS and I contacted Taxback.com asking what is going on. They said IRS was wrong but the agency is going to appeal. Many months passed and never responded to my emails but today I got an answer saying that IRS denied the appeal. My question is if IRS would still file a tax lien in the mean time if they received the appeal from the agency. Recently I moved and never received the final notice by mail. Please advise. Thank you very much. Laur
March 28, 2007 at 12:58 pm
The IRS will not file a lien before you get a CP-504 notice. Before you receive that notice, you will receive a CP-501, which basically is a bill for the taxes you owe, then a CP-503, a reminder about the CP-501 and a bill for your back taxes Then the CP-504 is a certified notice which will also inform you that they may file a tax lien. Keep in mind that they can file a tax lien at any time after the CP-504 notice goes out.
March 28, 2007 at 1:02 pm
The statutory requirement says that you have to file every year you owe taxes, however, the (IRS) Commissioner’s policy states if you’re out of the system, you are encouraged to file the current year’s tax returns and the previous five years. You will then be considered “current” in your tax filings, unless they observe badges of fraud. In that case, they would seek management approval and they can then go back as many years as long as you failed to file your returns. In answering you second question, the IRS will prosecute, but it’s usually for several years of delinquency and the taxpayer usually has a high profile. They do not prosecute many taxpayers as a rule.
March 29, 2007 at 10:38 pm
A family member recently told me that He hadn’t filed a tax return since 1983. He has worked at the same job the entire time and taxes have always been deducted out of his paychecks. He has kept all of his W-2’s and has been in contact with the IRS in the recent years. He claims that he at one time had sent copies of his W-2’s to a representative of the IRS who had contacted him by phone. Since then there has been no attempt from the IRS to contact him, so he felt he was free and clear from any further complications. He also is an alcoholic and seems incapable of taking on this major resoponsibility. I am willing to help him tackle this situation, first I would like to know his legal status and what steps he needs to take to satisfy the IRS for he has built a 401-k fund worth around 120,000 dollars. I fear he will lose his retirement due to his neglect in this matter. I’m desperate for some credible advice.
Jason Henderson xxx
March 30, 2007 at 11:50 am
I am having someone from our office call you, but my initial recommendation is that you file youre returns as soon as possible. We can get information from the IRS as far back as 2002 to help recreate your family member’s tax returns. And, that’ll be as far as you will be required to go back.
April 9, 2007 at 11:30 pm
I owe back taxes for 2004, & 2005. I filed my tax return for 2006 just yesterday, and saw that I could haVEE recieved a pretty good refund. Unfortunately because I owe backtaxes I will not see a penny of that refund. If this doesn’t teach me a lesson…. I don’t know what will. Is there a local IRS office I can visit, and try to negotiate a comprimise with? Also - what kind of criteria do I have to meet in order to negotiate the $18,000 I owe in back taxes?
April 20, 2007 at 9:35 am
IRS will require you to pay what you can afford to pay and allow you to keep enough so that you do not have to give up transportation, food, clothing, lodging and healthcare. Local offices are located in most metropolitan areas. You can call 800-829-1040 and ask for the office nearest you and then talk to them on the phone about your situation as well.
April 21, 2007 at 5:46 pm
I am A Chapter S CORPORATION a small subcontractor… I just received a letter from the IRS that POSSIBLE PAYEE NAME/TIN Discrepancy on three of my 1099. The problem is that was for 2005 and what I have matches (w-9) the information that they provided…. I can not get in contact with them and I also used them for 2006… What is going to happen? I have receipts that I paid them CASH that is the other problem I have,,, What can I DO??? what will happen to me??? Please advise
April 22, 2007 at 12:39 pm
Hello, what it the limit on gift money receive from a family member, do i need to report it on my tax return, or what can i do to avoid paying tax on the gift money on my next tax return.
thank you John P.
April 23, 2007 at 9:43 am
We will need more information before we can advise you, but we do recommend that you try and work out the payee name/TIN discrepancy with the IRS. I would try to call IRS at 1-800-829-1040 and see if you can work this out. After that you may or may not need further assistance. If you do, feel free to visit my blog again and post a question.
April 23, 2007 at 9:46 am
John P., the law has changed and the amount has increased from $10,000 to $12,000 a year. You can make individual gifts to anyone notwithstanding whether they are family members or not. Anything over and above that is taxable. Hope this helps.
April 23, 2007 at 1:58 pm
My question is concerning tax liens. About 13 yrs. ago my husband could not pay $3000 income taxes due. Accoridng to him he had paid more taxes that what was actually reported so he ended up owing the $3000. Time passed and in this confussion with the employer, since the taxes were not paid, a tax lient was filed. I never saw any IRS notices but it could have been that my husband never showed them to me so as not to worry me. I found out about the tax lien several years later when I looked up my credit report. I encouraged my husband to call the IRS but he never did. I tried to get information myself but since it was a joint return they tald me that my husband was the one supposed to call and they could not release any information to me (very silly since I am directly affected). Is there a statute of limitation on tax liens? I am in limbo. We have filed our taxes every year and have not received any more notifications from the IRS. What should be my fist step to resolve this situation? Very Concerned
April 24, 2007 at 9:23 am
Melissa, go to your local courthouse and get a copy of the lien(s). Look from left to right in the columns of the lien. In the next to last column, reading left to right at the top will say “Last date for refiling”. If the date in that column has passed, your tax lien has expired by reason of the statute of limitations running. When you get the copy of the lien and the date has passed, you should send a copy of the lien(s) to the three major credit reporting agencies and tell them to mark their files accordingly and that the lien has been satisfied. On the back of the lien, there is a code section that tells you that it is a self-releasing document. I have made this recommendation based on the information you submitted. If there is anything else you need to share with us, please let us know and we’ll do our best to help you.
May 18, 2007 at 4:42 pm
My husband and I have not filed taxes for years(missed 1 year then fear set in). He (my name is not on it) just received requests from the IRS to file back to 2000. The problem is the requests came for my husband and they have him as married filling seperate and zero deductions. We are double income with 2 children. The failure to file and failure to pay penalties are around $900 each year. They say if we do not agree we have until July 2 to petition the tax court. This is extremely nerve racking. We want to comply but don’t have a lot of money like they seem to think. Any advice?
Thank you,
Toni
May 23, 2007 at 2:49 pm
IRS is preparing subsitutes for returns and that is what’s causing you to get these letters. IRS will prepare a return just for the husband or whomever they have an information document on, give them the standard deduction and no exemptions. The substitute for return, by definition, is not a return although it gives IRS the authority to do whatever it is they deem appropriate in terms of enforcement in collection of the tax. I suggest that you file a return for each year the IRS is asking for. Claim your spouse if appropriate, any children you have, any mortgages, and anything that’s deductible. That will reduce your tax liability significantly.
June 21, 2007 at 1:05 pm
I was partner in a company that closed. I closed the company due to the other partner committed theft and fraud. I went straight to all authorities. I worked with the IRS closely, but still had tax lien filed against me for $70,000 in 941 taxes. No penatlies we applied to me. (The partner was found guilty on all charges and was ordered by the court to pay off my lien one year prior to him being off probation. He was convicted of a felony and given 10yrs. probation. ) On my tax lien, the last date for refiling was June 8, 2007. The quilty partner is suppose to have my lien paid off by March 10, 2008 ( if he follows court orders). This is my question? Is my lien up, or should I start the court round again and try to enforce the quilty partner to pay the lien as ordered? This is ten year burden has been miserable to my family. Can you help?
June 22, 2007 at 1:50 pm
Charlene, thanks for your question. I don’t have enough information to give you a definitive answer, but based on what you provided you could have grounds for applying for a lien discharge since someone has been judged by a court to be responsible for paying off the lien. My suggestion is that you consult a tax professional so that all of the right questions can be asked and you can then know for sure what options may be available to you.
June 25, 2007 at 3:47 pm
Do you cover mandatory criminal restitution whereas you can reduce the restitution
amount that is liened against the defendants property ( $100,000-+).
June 27, 2007 at 8:39 am
Jack, I appreciate your question, however, since your issue is of a criminal nature, we can not assist you. I recommend that you seek an experienced attorney to help you. Once the issue has been settled, we would be happy to work with you on this matter. But, first thing’s first — you must settle the criminal nature of the issue and we recommend you retain a seasoned attorney to help you.
August 17, 2007 at 2:31 pm
I have rcd a correspondence audit from the IRS for 2005 taxes. I owe 7.5K in taxes plus penalties and interest totaling 10.5k. this was caused by distribution from quaklified plan 401k and me not having info when filed and forgot about it. Had to pay ex $35k even though we had agreemenrt - but was never signed or entered into court -for consideration of me not trying to stop her from moving out of state - atty counseled me that i had slim to none chance of stiopping her and did not want kids - 2 girls < 2 and 8 when she left. Got laidoff from 13 + year job at large bank went back to vourt and had to pay $35K in back costs (even though she has\d made no effort to collect them for 3 years) that was part of the agreement AND $15k for a credit card that was discharged in my bk (disc 12/00) she reneged and my atty without my knowledge or approval put that i would jold her harmless from any tax implications. She also stated she was going to file bk never did. I had an acct do the return in 05 but did not have tax papers from distribution and forgor about it.
i have not sent in 06 tax return yet took out more from qualified plan. I am on disability since divorce - depression caused by this. she has moved out of state ect…turning kids against me. i do not have the money nor will she sign yhe 8332 required by IRS even though it is in the decree to take 1 exemption each. i have not taken any exemptions for 4 years now. I believe I can get 10% easrly withdrawal waived due to disabilitiy. what about penalties and interest and what about this years taxes where i need to pay more? what can i do an=\bout penaltioes and innterest ? Can i make an ioffer in compriomise for both years or have to file and pay 06 before negotiationg 05? I do not have the $ to pay 06 never mond o5? Can I take both exmptions since I have not taking them in 3-4 years? How manyu years cam\n i go baxck an ammend returne? what do you think the chasnces of grttin waived dud tio hardship/disability? Would extraaneious marraige issues help or himder me? my response was due 6/20/07 recieved 2 extensions. plan on sueing ex for intentional/unintentional harm to me, my family and my children becasuse if this. I have been emotional, physically (on all kinds of meds) mentaslly and spiritually gutted by this woman. Told her this money was for kids education - she did not care - now there is nothing. Am taking her back to court for contempt of divorce decree but need to get this behind me. i have very kimiterd funds. What do you think is the worst / best outcome from this scenario? should i get representation or contact IRS myself. what do you feel is an offer in comptromisd for both years that the IRS may accept given the circumstances?
I need help!! ASAP.
JA in RI - kids ex live in CT.
August 20, 2007 at 11:01 am
Your situation is a complex one. Local courts can’t decide tax issues and can’t separate tax issues. If you have a strong enough case to prove Injured or Innocent Spouse, you could approach the IRS from that angle. In terms of the additional tax you owe, you have the possibility of filing a Doubt as to Liability Offer if you have information that is now available that was not available during the Correspondence Audit. Furthermore, you have the opportunity to file an Offer based on Doubt as to Collectability if you are in fact unable to pay your tax liability. As for dividing the children up in terms of dependency, dependency of children can not be arbitrarily determined. It has to be determined through the Court System and local courts can make those decisions in terms of tax liability. It has to be done through the court system or by proof of major support for the children. I seriously recommend that you obtain representation of a tax professional
September 8, 2007 at 8:46 pm
2006 we have $25,000 NOL because of rental loss (didn’t have other income), can we carryback to offset 2004 income ?
In 2004 we had AGI over $200,000.
September 18, 2007 at 9:02 am
You have a legitimate carry back and carry forward. You carry back first and carry forward next. Net operating losses can be carried back 2 years. Rental losses that are not allowed due to the passive loss rules are carried forward until they can be used or until the activity is discontinued. You are limited at $3,000 per year. Hope this helps.
September 25, 2007 at 3:11 pm
My son is a contractor and he has not filed with the IRS for a couple of the past years. They are currently looking for him and sending him threating letters. I want to help my son with his past record and was wondering if the govt will settle for an amount owned. My son had workers he paid also but never kept recoreds. Where can we go to get this behind him? What does your fees cost and could you help us with the IRS if we have not much records to prove anything. Help! He is going to be currently working and seeing an accounting professional for this year, but we are very worried about the past years.
September 26, 2007 at 3:39 pm
The first thing you need to do is file your tax returns. The IRS Commissioner has a policy that basically states if you have dropped out of the system and have failed to file for a number of years, if you come forward and file voluntarily the likelihood of being prosecuted is very remote. I don’t want to scare you, but you do need to get this issue taken care of as soon as you can. I recommend that you get a tax professional to help you with your issues as well as the preparation of your tax returns. There are probably options for you available with the IRS, but the person or firm that helps you should be able to inform you as to what is available based on your financial records.
October 2, 2007 at 12:47 am
Hi, I have an installment plan setup with the IRS since 2005, and have been paying $125 a month since. Unsuprisingly I only owe a little less than I do today thanks to those pesky penalties. I filed my 2006 taxes this April and the $5,700 refund I would have recieved went toward the balance due. I don’t think I’ll ever end up paying this off at this rate…. it’s getting to the point where I’m having trouble making the $125 payment per month. I don’t want my situation to get worse if I can’t make the monthly installment, so I’d like to ask for your help. Please contact me by email.
October 2, 2007 at 8:50 am
The quick answer to your question is that you should seek the help of a tax professional to advise you on your options as it would appear from your note that you do have some options available to you, including — possibly — the Partial Pay Installment Agreement. But, before we would know how to advise you, we’d have to have more information from you.
October 9, 2007 at 3:11 am
I received a CP 503 and I need to know if I have 10 busiiness days to respond or 10 calendar days to respond the letter does not specify just says 10 days. And do Saturdays count or is it just mon-fri? I am running out of days if you could let me know quickly. thank you
October 9, 2007 at 10:36 am
IRS is referring to 10 calendar days. If you need additional assistance or have any questions, feel free to contact a tax professional or call the IRS at 800-829-1040.
October 10, 2007 at 11:59 am
Hello I just got a 504 notice from the Irs was wondering this is back in 1998 having been tring to amend this for the past six years they keep saying they dont get the ammeded reurn now they say it is past there time line help
October 11, 2007 at 1:25 pm
By securing a copy of your Master File from the IRS, a tax professional could determine when the expiration of the Statute of Limitations will occur. Based on that information, a tax professional could advise what type(s) of programs from the IRS you might qualify for.
October 16, 2007 at 10:30 pm
Dear John,
Our 2004 tax return was under audit since last year April 25, 2006. The result is not end yet because we have not heard from IRS. should we file the 2006 tax return? What happen if we do not file the 2006 tax return until the 2004 tax audit resolve?
Thank you for your help in advance!
Patty
October 18, 2007 at 8:32 am
There is no reason to not file your 2006 tax return. You should go ahead and file it as soon as possible. If you don’t file, and you owe tax on the 06 return, you will be subject to penalties and interest.
October 24, 2007 at 12:07 pm
Today (October 24, 2007) at 11:50 Am-My question was: If both state and federal taxes not done properly- wich one needs to be handled first. A represenative called me regarding my confusion. He made me feel very important with JK Harris Company. I believe JIK Harris will be able to be rid of this tax nightmare as soon as possible. Thank you so much for making me feel like you had no other client but me even though I know you probably have several. As far as customer response and satisifaction JK Harris has done a great job with me. Maybe other people need to know who has priority State or Federal!
October 28, 2007 at 1:05 pm
I owe IRS tax for the year 2004, 2005, 2006 and I am making monthly payment now.
but the interest is building up, and now I can not be able to make payment due to my job and economic hardship. Can or How I can get the IRS forgive the Interest and I only pay the principal? please help.
October 29, 2007 at 7:48 am
Robin, I appreciate your kind words. As it turns out, it appears we did make a mistake when we contracted you for just state tax returns. I am pleased, though, that our welcome team and customer service teams found the error and we will be providing you your federal tax returns at no charge. We appreciate your business and your confidence in our team!
To answer your question, the federal government usually works out a reciprocal plan with each state so that they exchange information. The information is exchanged from federal to state, and not state to federal. The federal taxes need to be be done first, but in the end, you need to do both. There is not necessarily a priority of one over the other.
I hope this helps, and again, thank you for your business and your question!
October 30, 2007 at 8:36 am
Hai — The IRS will not forgive the interest. They will never forgive the interest. The only solution for you is to borrow the money at a lower interest rate and pay the entire bill off. Or, ask the IRS to lower your payments in order to meet your current ability to pay. If you are not successful with the IRS or you feel you might need assistance, contact a tax professional to assist you. I would recommend, however, that you try to work it out with IRS, first.
December 10, 2007 at 8:19 pm
I just got a notice in the mail stating that my ex-boyfriend (who is my childs father) claimed our child on last years taxes. I also claimed my child because we have a verbal agreement that we would alternate years. He told me that he has decided that he will claim him every year because he said that he has the right to because is AGI is higher than mine. We basically share custody but in 2006, our child resided with me more than half of the year. How can I prove that he resided with me for more than half of the year? This year I started keeping a calander of when he had our child and when I had our child. Will this calender work for proof for 2007 that I had our child for more than half of the year? Any assistence is appreaciated.
December 11, 2007 at 6:18 pm
Jennifer,
Usually when two people claim the same child in the same year, the IRS will give the exemption to the first person to file their tax returns. My advice to you would be to write to the IRS and be as detailed as you can. Tell them everything you have mentioned here, and provide as much proof as you can that your son lived with you more than half of the year. The IRS is big on percentages; you will need to provide them with proof that your son lived with you and you provided more than 51% of his support.
December 15, 2007 at 11:36 pm
My husband worked in Tenn. ( no state tax), rented for 2003 and 2004. In 2005 we bought a house. We also owned a house in Georgia where I worked part time and paid Georgia taxes. Georgia said we owed taxes for earnings he made in Tenn. even though he lived there over 280 days out of year because he had intented to move back to Georgia when he retired in 2006. We meet with them with all of our proof and they said we still owe over $12,000.00.
We hired a cpa and refilled with federal and state. State disallowed most of it. Is there any help or just pay it ? Thanks!
December 17, 2007 at 1:33 pm
HI,
I e-mailed a question on June 21 about my tax lien. The date of assessment was 05/07/08 and the date for refiling was 06/08/07. That date has passed and they only thing I have heard from the IRS was their yearly statement dated December 7, 2007. I checked at my local court house on November 6, 2007 to see if they had record of another lien being refiled. At that time, nothing has been recorded. It reads on my lien that it is self-releasing if not filed by 06/08/2007. Does this mean my lien has expired? How would I know for sure? Can you help?
Cordially,
Charlene
December 17, 2007 at 3:20 pm
Sheila,
Thank you for your inquiry. However, there is no simple answer to your question without knowing all of the details or having all of the information and documentation, such as the forms that were filed with the State of Georgia and the letters you have received from the state. If you feel you might need assistance, I would suggest you contact a tax professional and provide them all of the necessary documentation to assist you.
December 18, 2007 at 12:41 pm
Charlene,
Thank you for your question. What you need to do is call the Centralized Lien Unit at 800-913-6050 and they can tell you if the lien has expired. If the lien has expired, you can request a release of lien from the IRS. Once you have obtained that release of lien, you can bring it to the county clerk where the original lien was filed and have them file the release so the original lien will be reflected on your credit report as having been released. If this is not done, it will remain on your credit report and affect your credit score.
February 9, 2008 at 3:13 pm
i filed my taxes with h&r block and was supposed to get 4,100 dollars back. now i have a letter from the irs stating they need more documentation that my step children are mine. i have over 35 documents stating this and tried to file them with h&r block in the first place. once i prove my step children are mine is the irs really going to give me my refund? the children have lived with me for 14 months. i am seperated from there mom and she is in prison, and can’t have contact with them. p.s. i think its unfair how people have tried to portray your company. people will write anything on the internet.
February 14, 2008 at 10:24 pm
I was diagnosed with cancer at age 42 in feb 07…I became very depressed and spent thousands of dollars at a local casino. I received all my w2-g forms and paid all state taxes on the winnings up front. I did not pay any of the federal taxes.. The total amount won was 68,600.00… I honestly turned around and put it all back in each time, with the exception of about 13,000.00….I need some type of advice and what should i do first. I have always paid taxes on time and this is a scary situation….Any advice would be greatly appreciated…
February 15, 2008 at 10:42 am
James, thank you for your question. If you furnish the IRS with the documentation you have that proves your step-children have lived with you for 14 months, the IRS should give you your refund. However, if you owe a previous tax liability, the IRS would keep that money to offset the debt.
February 15, 2008 at 11:46 am
I’m hoping that finding this website was a godsend.
I am 24 years old, I went to a technical school for 1.5years, started when I turned 18. I honestly have no clue how much I owe besides the fact that it is well above $15,000.
I ended up moving back home and never getting to finish school because of the lack of employment near the city I was going to school. Since then I have been unable to hold a job for more than 2 years due to layoffs and plant closings, so I have been unable to pay my student loans and they are in default.
I have just learned that my tax refund has been offset. Unfortunately now I am in a terrible position, I am doing everything I can to support my family(wife, 2 kids under 2), Unfortunately the only job I have been able to acquire around here and KEEP is a measly $6.50 an hour job that I work nearly 12 hours a day at.
Because of the offset, I am going to be unable to pay my rent this month, my phone is off, and electricity wont be paid till the day its supposed to be cut off. I am at a loss of what to do, as I am working as hard as I can to keep my family afloat and there is nowhere else I can turn. Is there anything that I can do to help my situation that I do not know about, or should I give up praying?
February 18, 2008 at 8:14 pm
I owe a student loan. I lost my job last year due to health problems, and I am now collecting unemployment. Last year, the IRS kept my federal refund. This year, they are also keeping it. I am going through a rough time right now, and I was counting on the refund to catch up on my bills. Is there anything I can do to get at least something back?
February 19, 2008 at 6:27 pm
I am the primary income earner for my fiance and her daughter. We live in the same house and are sharing the responsibility of the bills and other house hold needs. I can not file as head of house hold because my fiance’s daughter is from a previous marriage. My fiance receives social secutity income because she was widowed. Her income was less than the minuim amount required to file taxes. Can I claim her and her child as dependants?
February 21, 2008 at 12:03 pm
Daniel, thank you for your inquiry. Gambling losses can be deducted on your tax return up to the amount of your gambling winnings but cannot exceed the amount of your winnings. Also, you will have to be able to prove the amount of your losses. So it is crucial that you keep accurate records such as receipts, tickets, statements or other records that show the amount of both your winnings and losses.
February 21, 2008 at 12:18 pm
Kevin, thank you for your inquiry. I can certainly understand your situation. Unfortunately, once the IRS has taken your refund to help offset your student loan debt, there is no way of getting that money back. There are programs that can help get your student loan out of the default status, such as the Student Loan Rehabilitation Program. This program, however, does involve making agreed upon monthly payments for a certain number of consecutive months. Once those payments have been made, the loan will be taken out of default status and, as long as you continue to make monthly payments, the IRS will no longer keep your refunds.You may want to seek some professional guidance to find the program that suits you best.
February 21, 2008 at 12:25 pm
Elsa, thank you for your question. If the IRS is keeping your federal refund, that means your student loan is in default. Unfortunately, once the IRS has taken that refund, there is no way of getting any of it back. In order to prevent the IRS from taking your refund next year as well, you will need to get your student loan out of default. I recommend that you seek some professional guidance to find the best approach to having that default status removed.
February 21, 2008 at 12:28 pm
Gary, thank you for your question. You can claim your fiance and her child as dependents on your tax return. However, you will have to report her Social Security income on your return as well. This income may not be taxable, but it does need to be reported.
February 22, 2008 at 12:42 am
my husband had a judgement from chase visa filed some years ago - today we received a 1099-C in the mail. what does this mean?
February 26, 2008 at 2:34 pm
Hilda,
Thank you for your question. The 1099-C you received is a “forgiven debt” or “cancellation of debt” by Chase Visa.This needs to be reported as income on your tax return, but it is subject to some conditions, which are too numerous to name here. I would suggest you consult with a professional in regards to your particular situation.
February 29, 2008 at 3:06 pm
I have 70,000 of taxes to pay, primarily because of capital gains. I had to sell a farm to pay off my ex-wife. All of the money went to her and none to me, but I still have the capital gains to pay. I gave her $625,000. My accountant said that I could not claim this as an expense. Is there any help for me? I cannot pay any of these taxes.
March 6, 2008 at 9:51 am
Donald,
Thank you for your question. I would have to suggest that you seek professional representation because with your situation you may qualify for an Offer in Compromise, Currently Not Collectible status or an Installment Agreement.
March 19, 2008 at 7:07 pm
The IRS has Audit my 2004 tax return. I don’t make alot of money,so I normaly use a 1040EZ form. And that return I did online. The problem was I had a 401k cashout. So when I did enter that line item amount,I also enter it into another line item box. Therefore it looked like I was claiming Double the amount. So now they want the taxes on that other amount with intrest and penalties,with come to around $8000.
Please Help me
March 30, 2008 at 4:19 pm
I need to know if you can point me in right directon on my city taxes. I have not paid for them in 3 years and I dont want them to put liens on house, also wife past do cc debt is in court right now and wanting to know if can get out of that if arrangements are made before going to court.
March 31, 2008 at 1:28 pm
hello, my question is, i owed back taxes for 2005. i filed my taxes on january 14, 2008 and it was accepted on january 15,2008. On Feb 4th, they posted my offset to my account which left me with a balance of 1600.00. I received a notice telling me my refund balance would be deposited in 6-8 weeks from the date of the posting. It’s now 9 weeks and i haven’t heard anything, i call and call and call the irs and no one seems to have an answer and no clue why there is a freeze on my account. on march 24th they sent a request to atlanta service center to release my refund. But, they won’t give me a number so i can talk to someone directly there to find out exactly why they still have a freeze on my account. Any advice you could give me i would truly appreciate.
thank you
Lori Taylor
April 2, 2008 at 3:19 pm
Andy,
Thank you for your question. I would suggest you contact your City Tax Administrator for guidance with this issue. As for the credit card debt, you may want to contact the credit card company and see if they are willing to work with your wife.
April 2, 2008 at 3:26 pm
Lori,
Thank you for your question. Have you tried the “Where’s My Refund” link on the IRS website? Or you can call the IRS TeleTax System at 800-829-4477 or the IRS Refund Hotline at 800-829-1954. You must have your Social Security number, filing status and the amount of the refund when you call.
April 4, 2008 at 3:27 am
I am disabled and am hounded by back taxes due in 2001 and 2002. For two years the IRS and my CPA firm has been trying to figure out a payment plan. My only income is SSDI and a monthly payment from an insurance company reported to the IRS as sick pay. Here is my question. How much of the SSDI and how much of the sick pay is vunerable should the IRS decide to attach these funds? Thanks
April 8, 2008 at 12:38 pm
Hi,
My friend defaulted on his student loan. He had borrowed 12,000.00 and now due to his default the loan is 28,000.00. The collection company has been calling him and they want him to agree to pay 300.00 a month which he can’t afford. He’d be directly back in default after the first payment. He would be willing and able to pay probably 100 to 150 dollars a month but they don’t want to accept that. I guess my question is how reasonable is the amount he is wanting to pay and what is your charge for handling a case such as this? He lives in your area Mr. Harris.
Yolanda
April 9, 2008 at 8:33 am
Larry,
Thank you for your question. I am sorry, but I really don’t have enough information to answer your question. I would advise that you seek a tax professional to help with your situation.
April 9, 2008 at 8:40 am
Thom,
Thank you for your question. This is a difficult question to answer because I don’t know how the IRS is treating your sick pay. I really would need some additional information. However, it does seem reasonable that the IRS would negotiate some type of Installment Agreement with you. This is something your CPA should be able to do. However, you may want to seek some professional tax help.
April 14, 2008 at 8:11 am
Yolanda,
Thank you for your question. The $300 payment arrangement offered by the collection company seems to be a standard amount. It could be attempted to secure a lower payment through an income-sensitive rehabilitation program, as long as your friend qualifies. I would suggest that your friend seek professional guidance.
April 24, 2008 at 8:59 pm
I moved to Florida in June of 1999. I was under the impression you didn’t need to file tax returns in the state of Florida because it was a no tax return state. I moved to Maryland in January of 2005, but when I went to a tax agency to file my tax returns in 2006, I was informed that every one has to file a federal tax return and that Florida is a no state tax, not federal. I was then told to seek legal advice. I have since then contacted legal representation but can not afford to obtain there services. If I file my back taxes myself, what kind of trouble will I face with the IRS?
April 30, 2008 at 11:50 am
Ms. Brown,
Thank you for your question. If you file your tax returns for 2003, 2004 and 2005 with the IRS you will be back in their system and in compliance. However, if you are due a refund on those returns, you will not receive that refund because you did not file them within the three year requirement. If you owe the IRS money from those returns, you will have penalties added to the amount you owe them.
May 3, 2008 at 6:04 pm
I am presenting being garnished by the State of MD tax office. I owe them approximately $14k. I had been working with them and also with Federal to set up payments arranges. Now that Maryland Statement has the garnishement againtst I barely have enought fund s to pay my living expenses let alone pay my Federal Tax bill. What can be done to help me and once a garnishment is started can they be stopped. How does bankruptcy help me?
May 9, 2008 at 3:38 pm
I am interested in buying a property, My grandmother passed away (03)leaving her home to her children. Her children do not want the property because they were told that the IRS had liens on the property from a business that my grandparents owned and after my grandfather passed away, my grandmother let the business go. (88-89) When contacting the IRS they stated the could not provide any information not even to her POA, because the POA form was not specific in stating that tax matters could be discussed. The IRS agent stated that if a lien or judgement was on the property that as soon as her will was probated or property sold they would seize the property for payment. However, I have done many lein searches and can find NO copies of any liens or any judgements from the IRS. I need to know if they are required to file any documents with the local courts as public records that would provide documentation of the lien, or can the IRS wait and file a judgement at any time. Over the years I have spent my own time and money on the upkeep, repairs and current taxes on this property and do not want to continue if the IRS can take it away. I was also told that they IRS could hold the children responsible for her debt. The house is not worth much and was nearly condemned until I made repairs, it is more sentimental then anything. I do not want to spend any more money on this property just to benefit the IRS if they can legally file a judgement now after her death nor do any of the family members want to inherit her debt.
May 12, 2008 at 10:39 am
I filed a bankruptcy that was completed in 12/2007. It included back taxes foe 2000 and 2001. When I filed the bankruptcy I only used my name and not my wife’s. Now the IRS has sent a letter for roughly $2,500 still due in penalties for 2000 and $3,500 still due in penalties for 2001. How can this be since the taxes were completely paid with all penalties as part of the bankruptcy? HELP!!!
May 12, 2008 at 6:19 pm
I took $9,000 out in 2005 out of 401K. My mom passed away in 2004 and I used the money to settle her accounts, bills and funeral expenses. I did not report this on my 1040 return. Recently I received notice from IRS about this and they kept my refund this year to pay the back taxes. I did not notify the IRS that the money was used in this manner. The total tax is now paid and debt settled. My question is this….. Could of I of avoided all of this due to the fact that I used this to settle my Moms estate? I took a withdrawal instead of a loan. Thanks for your expertise!
May 16, 2008 at 3:47 pm
Linda,
Thank you for your question. You may want to contact the Maryland Department of Revenue and explain your circumstances to them and see if they will grant you some kind of relief. States can be very different to deal with compared to the IRS. If you do not want to or feel you cannot do this on your own, I would suggest you seek professional representation.
May 16, 2008 at 3:50 pm
Ann,
Thank you for your question. My best suggestion to you would be to seek out a Title Attorney to do a search and advise you from there.
May 16, 2008 at 3:55 pm
Jerry,
Thank you for your question. You can request your transcripts from the IRS by calling them or by going into your local IRS office. The transcripts will show you how or if the money was applied. Your other option is to check your actual bankruptcy papers to see if the taxes were included and how the money was applied.
May 16, 2008 at 4:01 pm
Debbie,
Thank you for your question. Unfortunately, settling your mother’s account is not a reason the IRS will accept for not applying penalties and taxes for withdrawing funds from your 401k.
May 24, 2008 at 4:29 pm
I have been seperated from my ex for the last ten years, my tax refund checks were held back because he owes the IRS money, How can I clear my name and seperate libility from him.I am not sure why or what he ows but if need to I am sure he can ferified that I am not rsponsible and will release me from lilbility. What I needn is advise on how to go about clearing my name.
Thank-You
May 27, 2008 at 6:57 pm
I owe 2001-2002 taxes, filed 30 days ago, but don’t know amount owed yet ($8k-$25k). I have logged four months of phone calls to the IRS. Should I write the IRS a “Hardship Letter” or “Letter of Explanation”? Could this help to have the IRS place my file in the category of: “Doubt as to Colletability”? The “hardship” includes: low paying job, while living in a high cost community, and X-wife embezzlement (& gambling) problems (from 2001-2002).
June 2, 2008 at 6:58 am
Hell sirs,
I think i get more and different info here.
i thank U all for spending time and valuable info.
——
Bob
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June 2, 2008 at 9:43 am
Christine,
Thank you for your question. I would suggest you seek guidance from a tax professional or contact the IRS directly. You may qualify for Injured Spouse relief.
June 2, 2008 at 9:49 am
Brien,
Thank you for your question. I would suggest you go ahead and contact the IRS and explain your situation to them. Once they know the details, they may decide you qualify for Currently Not Collectible status, or they may set you up with an Installment Agreement or suggest an Offer in Compromise.
June 2, 2008 at 9:53 am
Bob,
Thank you for your kind words.