Different expert here - My name is ***** ***** I have a different answer.
The information provided in your original question did not include why you have a tax liability
for 2005. Please know that if the tax liability is due to stocks being sold, the IRS ONLY RECEIVES documentation regarding the sale and taxes you on that amount. The IRS has no way of knowing what was paid for the stock (your basis); and therefore, does not calculate the correct amount of tax (if any) that would be due.
For example, if you sold stock for $50,000 but you paid $25,000 for the stock, you would owe taxes on the difference--$25,000 rather than $50,000.
Since your original question mentions that you have no other income
besides social security, did you file a tax return
for 2005? If not, you will want to file a tax return as soon as possible to accurately report the sale of stock transaction
. If you did file a tax return for 2005, you will want to amend that tax return to accurately reflect any transactions that took place.
It may be worth your time to have a local
tax professional review any documentation you have in an effort to determine if you really do have a tax liability. The IRS is not always correct because, as I mentioned, they only receive one piece of information.
Please let me know if you require further information or clarification.
Thank you and best regards,