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PDtax
PDtax, CPA, MBA
Category: Finance
Satisfied Customers: 4506
Experience:  Tax professional and business consultant for 35 years.
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I have received a "Proposed amount due" notice from the IRS.

Customer Question

I have received a "Proposed amount due" notice from the IRS. The IRS has identified income as reported by third parties, substantially from taxable 401k distributions that was inadvertently not reported on a joint return.
Presuming the income data is correct, is there any basis to negotiate the amount due?
Submitted: 1 year ago.
Category: Finance
Expert:  PDtax replied 1 year ago.

Thanks for asking for me. I'm PDtax.

You have three bases for a reduced settlement with IRS:

There is a doubt as to the liability,

There is a doubt as to collectibility, or

A discount would be appropriate if if would allow for effective tax administration.

Expert:  PDtax replied 1 year ago.

If the tax is due, and you have the means to pay, it'sd not likely that you will get a deal. The deals only come when there is (1) a risk that the tax due is incorrect, and you are willing to dispute it or (2) you don't have the means to pay. IRS will settle to get the most they can.

Effective tax administration likely does not apply in your case.

Expert:  PDtax replied 1 year ago.

Thanks for asking at Just Answer. Positive feedback is appreciated. I'm PDtax.