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My company reported on my W-2 that I payed 11,267 in federal in 2007. I just received notice that they had made a mistake and I only paid 8,267. The companies CPA advised it was his mistake and he will refile my taxes for free. I now owe the government 3,000. What should I do??
Country/State/Province of question: USA/PA/Aston Already Tried: I have not tried anything yet. I just received my 1040x prepared by the company's CPA with a letter advising me to send my 3,000 check to Department Of Treasury.
In such a case, if you owe any tax- resulting from CPAs mistake- than the CPA will reimburse you with the interest and penalty that you may owe. The payment of tax will be your responsibility.
Generally, if you exchange business or investment property solely for business or investment property of a like-kind, no gain or loss is recognized under Internal Revenue Code Section 1031.Generally vacation home or second home used for personal purposes only does not qualify for Sec 1031 exchange. Vacation homes may qualify as investment property if the taxpayer's personal use is limited and/or the home has been rented.
Let me know if you have any question. Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.
Thanks so much for the help! It sucks that my employer screwed up 2 years ago and now I have to pay. I really appreciate the help and will definitely return to this site in the future for answers!
Thanks again!!
Thanks for using Just Answer.
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Certified Public Accountant (CPA)
CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..