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Ask Shan-Nel Simmons Your Own Question
Shan-Nel Simmons
Shan-Nel Simmons, Enrolled Agent
Category: Tax
Satisfied Customers: 8
Experience:  Tax Professional and Owner at Nel's Tax Help,LLC
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IRS says I owe 12K for the year 2003. They asked if I still

Customer Question

IRS says I owe 12K for the year 2003. They asked if I still had my tax information for that year. I said no I don't keep tax records that long. I asked the IRS to provide my tax records for 2003 as I was W2ed and I don't owe the IRS any money. The IRS said they didn't have my records for 2003. So why have the tried to raid my bank accounts which I halted and why have they been confiscating my tax returns the last 2 years. I have sent multiple letters to the IRS stating I owe no money to the IRS and for the IRS to provide the records from 2003 the IRS is referring to. Of course they never reply to my requests. I also sent a formal request for my W2 information for 2003 and to date no response. How does this happen.
Submitted: 3 months ago.
Category: Tax
Expert:  PDtax replied 3 months ago.

Hi from Just Answer. I'm PDtax, and can assist.

Expert:  PDtax replied 3 months ago.

The IRS went to a policy of retaining only seven years of taxpayer records a few years ago. They have their reasons, but it makes issues like yours more and more frequent. And they can try to shift the burden of record keeping to taxpayers, but there are other issues that might get you out of the tax.

IRS typically has the years to audit a return, six years for substantial understatement, and an unlimited statute for assessment for fraud.

It is possible that IRS is to late to ask for these additional taxes. You didn't say when the tax bill was assessed (discussed above). Additionally, IRS has ten years to collect. If you filed an accurate return April 2004, IRS would have until April 2007 to assess more tax, and April 2017 to collect.

Expert:  PDtax replied 3 months ago.

There are other factors that extend those periods, but a review of your tax transcript will show the IRS position of when things were done and their position of when certain statutory period expire. Fit example, the ASED is typically printed on page 1 of the transcript, available upon request from IRS. That is the assessment statute expiration date. If their assessment is after the ASED, the taxes are uncollectible. Same with the CSED, the collection statute expiration date.

We do quite a business in IRS representation in the bricks and mortar world. The IRS position that they don't have to produce documents is not one they win if taxpayers litigate, but the cost to taxpayers in legal and CPA time acts to discourage litigation. They will not yield, in my experience, just because they don't have the documents. And that is wrong.

Expert:  PDtax replied 3 months ago.

I have used an Offer in compromise to negotiate settlement in cases like yours, but not in your case. If your CSED is expiring in a few months, allowing that to expire might be the best resolution. Even entering into an installment agreement that dues not extend the CSED could buy you the time to allow the statute to expire.

I hope this offers some hope on your dispute. A review of your case by a quality tax professional is warranted. Do not try to handle this yourself.

Thanks for asking at just answer. Please rate my assistance with positive feedback to close out your inquiry. I'm PDtax.

Customer: replied 3 months ago.
I didn't file tax returns for 2003 and 2004 because I didn't owe taxes
Customer: replied 3 months ago.
Was just notified CC company put a hold on payment because they did not recognize the purchase. I released the payment. Please try again.
Expert:  PDtax replied 3 months ago.

Hi again. PDtax again.

The phone call request did not clear on my end. I'll try again in a few minutes.

Customer: replied 3 months ago.
Everything is good on my end.
Expert:  PDtax replied 3 months ago.

Still no luck on my end.

Customer service has been notified and will advise.

Expert:  Shan-Nel Simmons replied 13 days ago.

It as great talking with you. Please leave a five star rating and you have a great day! Wishing you much success!