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Chad Oberg
Chad Oberg, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 174
Experience:  10 + years of accounting and tax experience, financial statements and business planning
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We sold a business in 2007 and owed $56,000 in taxes due to

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We sold a business in 2007 and owed $56,000 in taxes due to that sale that we had no idea we were going to owe. That tax due grew to $72,000 over time with penalties and interest. We had a huge loss in the tax year 2009, and did the tentative loss carryback. That reduced our tax debt in 2007 on TAXES down to $8,000. Our CPA and I talked with the IRS agent in January of this year and told them we were going to be filing the carryback, and she specifically told us that the penalties and interest would be recomputed and that we would penalties and interest on the amount due after the carryback. She specifically used the example, "if you owe $8,000, then you will owe interest and penalties on $8,000. We got our tax bill for 2007, and they did not reduce the penalties and interest, they still have that full amount due on those. Is there anything we can do about this?



If you have the contact information for the person you talked to at the IRS, try to call them back and discuss the matter with them. If you do not have the phone number, call them and re-initiate your contact with the IRS. Explain your situation to them and what the prior IRS agent communicated to you and see what they say. If you have the conversation documented it is definitely more advantageous. Always take down there ID number and any other information communicated. This is where I would start and see how it plays out.


If they do not reduced the penalties and interest there are are other avenues that you can utilize such as a payment plan or an offer in compromise. However, the IRS is not giving these out so freely since the recession and the government's lack of funds. You will have to prove that you are in a financial hardship to qualify.


If you have any further questions, please do not hesitate to contact me.





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