Have a Tax Question? Ask a Tax Expert
Hi and welcome to Just Answer!Generally - there will be penalty and interest charges if you owe taxes for 09 and 10.If all taxes were timely paid - you will not be penalized.
When you determine your actual tax liability - and there is the tax debt which will be paid late - there will be automatically added late payment penalties and interest charges.The best path forward might be to ask the IRS to abate penalties, however it would be very unlikely that interest charges are abated...File a form 843 - http://www.irs.gov/pub/irs-pdf/f843.pdf to request the "accuracy related penalty" be abate based on reasonable cause. Be careful when prepare an abatement request. But medical issues are generally considered as reasonable. Explain that you are disabled and provide all information you posted here.Here are instructions - http://www.irs.gov/pub/irs-pdf/i843.pdf
Generally you may deduct casualty and theft losses relating to assets you own. In your situation - because funds were stolen- that is a theft. A theft is the taking and removing of money or property with the intent to deprive the owner of it. The taking must be illegal under the law of the state where it occurred and it must have been done with criminal intent.
As individuals - you are required to claim theft losses as an itemized deduction on Form 1040, Schedule A .
Casualty and theft losses are reported on Form 4684 , Casualties and Thefts.Casualty losses are generally deductible in the year the casualty occurred. Theft losses are generally deductible in the year you discover the property was stolen or destroyed unless you have a reasonable prospect of recovery through a claim for reimbursement.
Please let me know if you need any help.I will address all your concerns.
I trusted him, through the internet and faxing the request to withdraw money he was able to get approx. $150,000. WHICH WAS MY RETIREMENT. POLICE REPORT MADE. I OWE $40,000 to irs. for money not received, tax person did not help.