Have a Tax Question? Ask a Tax Expert
If you add the $5800 to the amount you owe, what would the total be?
Did you pay your "friend" to do the return?
about $10,000 for 2009 and 2010. Yes I paid him $50.
First. If you do not like this person, you can turn them into the director of professional responsibility for preparing a return for a fee and not indicating himself as the preparer and not completing the return correctly.
You are saying him put more for federal tax withholding than you actually had?
Yes. He indicated that the tax withheld was $4,157 when it was only $457 and also that my taxable wages were $39,500 when they were actually $51,399.
What was the source of the taxable wages being increased. Did he not have all of your income docs?
I could turn him in but I don't have a receipt to prove that I paid him. I do have an email though. What would that do for me if I turned him in.
He must have just typed the wrong numbers in for some reason. I only had one W-2 and only one source of income.
Do you have the w-2 with you? What does line 1 say? Do you have a copy of the return?
I have a copy of the return but not my W-2. I never got the W-2 back from him, which was a mistake on my part
But I'm pretty sure that it says $51,399 because what he wrote, $39,500 sounds way too low. I know I made more than that.
What lines on page 1 of the return are filled out?
1, 6a, 7 and 22
36 and 37
are you still there?
Sorry. Another expert had me locked out.
What do lines 38-43 have on them. The exact amount?
38 - $38,565
41 - 23,661
42 - 3,650
43 - 20,011
Um. Did you pay health insurance or contribute to an IRA/401k in 2009?
I did pay health insurance. No IRA
How much per month?
Do you own your home/pay a mortgage?
im not sure the exact amount right now. it comes out of my paycheck. i think about $150 a month.
no, i rent
What lines on the Sch A are filled out. This would be the source of line 40a $14904
5 a - $7000, 8 - $125, 9 - $7125 17 - $700, 18 - $4,100 19 - 4800 21 - $3,500 22 - 250 24 - 3750 26 - 771 27 - 2979 29 - 14904
Are you paying a State installment agreement? Did you have $7000 in state taxes withheld from your check?
Can you call IRS at 800 829 7650 and ask for a income transcript for 2009? Have a fax number ready or get the income and tax withheld information verbally and log back on?
Get all income reported to you, the amount, and the tax withheld.
I am not paying a state installment agreement for 2009, but i did pay one for 2008 during 2009. I had less than $7000 in state taxes withheld from my check. This is because I am a server and only get paid $4 and hour and first my health insurance comes out of my check, whatever is left over goes to taxes but I always end up owing at the end of the year.
Ok. I can do that. But I have to go to work now. Is it possible to resume this on Monday?
Anytime this weekend. I get notified on my phone.
I just want to ensure I have all the info so I can help.
Alright. So, when I log in it will notify you to log in as well, right? I want to get you and not someone else. I will get the info tomorrow and try to log back in on Sunday.
Thank you so much for your help so far.
Good day Sir. Were you able to obtain a copy of your w2?
I got the information from the IRS that you suggested I get, the income and tax withheld for 2009.
What is the amount shown as withheld/
Income withheld was $457 and wages were $51,399. Like I said before, the guy who did my taxes entered the wrong information for these, that's why I owe more money.
Ok. So you have two options.
Withheld: $457, Wages:$51,399
sorry, that was an accident
ok what are they?
you still there?
First, you need to sign the CP 2000 and return it to the IRS so that you can set up a new payment to cover both debts.
You should include with the singed CP 2000 a form 9465 to request the payment plan. Make sure the total debt will be paid in 60 months. I would divide the total by 55 to ensure the interest is included.
So you options.
1. File a form 843 to request the "accuracy related penalty" be abated based on the preparer's mistake. This may be difficult since the preparer did not sign the return.
2. File suit against the preparer for all associate penalty and interest. A demand letter may do it if you state you intent to disclose the fact that they did not sign the return as is required by federal law.
At the end of the day, you need to change your withholding so this does not happen in the future. Once the total debt exceeds $25K it gets much more serious. You so not want this to happen as one step is the filing of tax liens. This will effect you ability to get loans and your credit score.
As far as the 843 request goes, you could take the blame on your self stating clerical errors.
Ok. So if I report it as the preparer's mistake or my mistake then I may be able to get some of the penalties taken off?
but I will still owe about 5,860 still?
Yes, you will owe the money, and yes, you can have the penalties reduced. The best option is to pay the balance in full since the IRS does charge about 5% interest rate compounding daily. A simple interest loan would be much better.
The 843 form can be used to request the penalty abatement.
The only other option if you do not want to pay the tax is to complete IRS form 433F
The IRS will use this form to make a determination as to your financial ability to pay. They can accept a $0 monthly payment if your financial circumstances support it.
You first want to change your withholdings since they are used on the 433F as an expense only if they are being withheld, which ultimately helps you not owe in the future and lower the current payment amount.
But I only get paid $4 an hour, the money from my paycheck goes directly to health insurance and the rest to taxes. I never receive a paycheck, only tips. So, the withholding is as high as it can be.
OK. So the $51K from last year was a different job?
The 433F may help you out.
no, its the same one, but that's mostly tips that i receive nightly, not from a check
I only have 5 days for me to set up something with the IRS. Should I first do the 843 form, or should I request an extension?
I see. You are probably better off just sending the 9465. At $50K a year, the payment will probably be less.
Send the CP 2000 and 9465 first. Once the payment is set up, then send the 843.
Is it possible for me to refile my 2009 tax return accurately to insure that I received all the proper deductions and that I actually owe $5860 more?
You can, but if the only change is the withholding, then it will not make any difference. The IRS has already corrected that issue. Use form 1040X to amend the return.