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Marvin,EA
Marvin,EA, Enrolled Agent
Category: Tax
Satisfied Customers: 1672
Experience:  Enrolled to Represent Taxpayers Before The IRS
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RECEIVED $40,000 FROM ANUITIES & BOUGHT A HOME WITH IT IN 2006.

Customer Question

RECEIVED $40,000 FROM ANUITIES & BOUGHT A HOME WITH IT IN 2006. IRS IS NOW TRYING TO COLLECT TAXES ON THE MONEY WITH PENALTIES TOTALING 12,620.00.
Submitted: 8 years ago.
Category: Tax
Expert:  Marvin,EA replied 8 years ago.
Hello and thank you for using Just Answer. If the amount you received in 2006 was interest from the annuities the amount should have been reported as income on your 2006 tax return. The only thing you can do is to make arrangement with the IRS for payment of tax due. You can apply for abatement of the penalties by filing Form 843, Claim for Refund and Request for Abatement (www.irs.gov/pub/irs-pdf/f843).

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