Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

I was 14 years behind in filing returns, which I originally

believed would be refunds in...
I was 14 years behind in filing returns, which I originally believed would be refunds in each year. I filed all returns last fall.

In 1997 and 1998, I ended up owing money. ($9156 and $6664, respectively)

I had a levy for $16,624 in 2003 which "was applied toward 1999" (which I now believe when filing was $5199).

My question is about the use of the levy money. Can the levy money be used to wipe out the 1997 and 1998 tax debts?

Lane Killen
Show More
Show Less
Ask Your Own Tax Question
Answered in 35 minutes by:
8/3/2011
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 3,861
Experience: 3+ decades of varied tax industry exp. Tax Biz owner
Verified
Hello, welcome, and thank you for choosing Just Answer.
Ask Your Own Tax Question
Customer reply replied 6 years ago

Yes ma'am. Can I provide more information?

 

Lane

The statute of limitations on a tax debt collection is usually 10 years, but the IRS has ways of extending the SOL. If you did not file returns for 14 years, more than likely the IRS prepared the returns for you. (When a return is not filed by a taxpayer, after a certain period of time, the IRS prepares it for you). If the tax return was prepared by the IRS under the authority of section 6020(b) of the Tax Code, the statute of limitations does not apply. You can refer to section 6501(b)3 of the Tax Code and section(NNN) NNN-NNNNb)-1(c). Based on this information, if the remaining monies from the levy is enough, it can be applied towards, or used to wipe out your 1997/98 tax debts. Please note that penalties and interest continues to accrue on any unpaid balance.

 

Ask Your Own Tax Question
Customer reply replied 6 years ago

Ma'am,

 

That makes sense to me.

 

Do you think that the monies levied in 2003 would then stop all of the interest (and maybe penalties) in the previous years? So should I worry about the penalties and interest from 97/98?

 

Also the calculation of 97 / 98 was in January 2011. They just found the levy in March 2011.

 

Should I file an amended return? Or go see an agent?

 

Lane

Please note that penalties and interest continue to accrue on unpaid balances. The best way to find out how what the levied amount was applied to is to call them. I cannot answer that question for you. Note that if the IRS did prepare the returns for you, which more than likely they did, usually filing the back returns will reduce your tax liability. You may not owe as much as they say you do. I've seen this happen many times. If no returns have been filed, you would be filing original returns...not amended ones. I hope this clarifies matters for you.
Ask Your Own Tax Question
Customer reply replied 6 years ago

Yes Ma'am,

 

I agree with your logic. But I filed all the returns last fall. And the calculation they did was in January 2011 (what I owed).

 

Then they found the levy money after I asked them to look in March (2011). I don't think they have used the levy money in their calculations at all...

 

I guess I just don't understand how the levy money they got in 2003 would be retroactively paid.

 

How should I ask the agent the question?

 

Please advise.

 

Lane

My apologies,... you did write that you filed the returns last fall. Since you've already filed, there is no need to file amendments, unless you left out some deductions. If they haven't applied the levied money to your tax account, it can still be applied. They cannot just hold your money and not do anything with it. My suggestion is to request a meeting with an agent and go over your tax account. In the meantime, you can request your tax account transcripts and look over them prior to meeting with the agent. You can request your tax account transcripts online on the IRS website. www.irs.gov.
Ask Your Own Tax Question
Customer reply replied 6 years ago

Okay. I will request a meeting and ask for the transcripts.

 

You've been great.

 

Last time I faxed questions to them, they misunderstood and wanted to put me on installments starting on 6 August 11.

 

I have to call them to stop the installment issue anyway.

 

Is there a best office to call in my case?

 

Please advise.

 

Lane

 

The next time that you communicate with them, let them know that you want to discuss your tax account. Also let them know that money was levied from you and you don't think that it has been applied to your account. They cannot deny you a meeting. As I don't know what state you're in, you can call 1-800-829-1040 and ask them for the location that you should call.
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 3,861
Experience: 3+ decades of varied tax industry exp. Tax Biz owner
Verified
Tax.appeal.168 and 87 other Tax Specialists are ready to help you
Ask your own question now
Jax Tax
Jax Tax, Tax Attorney
Category: Tax
Satisfied Customers: 1,408
Experience: JD, LL.M in Business and Taxation, IRS Enrolled Agent. Expert in Business and Tax Transactions
Verified
The 2003 levy cannot be applied to other years even if the amounts levied are.in excess of the amount due on your return. The statute of limitations for claiming a refund is 3 years from the filing deadline or 2 years from any payment. A payment/levy in 2003 is past both of these. Even if you filed a return that would now show an over payment of that year, the excess or refund will not be moved to any other year. The money is basically lost.
Ask Your Own Tax Question
And. Collections number is 800 829 7650.
Ask Your Own Tax Question
The following is a excerpt.
When a refund has expired, that refund money disappears forever. In IRS terminology, an expired refund is considered an "excess collection". That refund money cannot be sent to the taxpayer as a check. Nor can the refund money be applied as a payment towards another tax year for which a person might still owe the government. Nor can be refund be applied to another year as an estimated payment.
Ask Your Own Tax Question
Ask Tax.appeal.168 Your Own Question
Tax.appeal.168
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 3,861
3,861 Satisfied Customers
Experience: 3+ decades of varied tax industry exp. Tax Biz owner

Tax.appeal.168 is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,310 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,695 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
Impact of tax changes on filing amended returns... Client
Impact of tax changes on filing amended returns... Client filed a 2016 tax return on time in 2017. If the tax laws change significantly, which laws apply when amended returns are filed... the tax laws… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,473 satisfied customers
Filed W1040 for self-employment. Should I file amended return for HSH?
I was self-employed last year and I filed a W1040 tax form. Everything went through well. I did it through an H&R computer program. Currently I am in need of financial aid as I am going to college. I … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
Lev, I am preparing federal unfiled tax returns for a client
Good morning Lev, I am preparing federal unfiled tax returns for a client of mine. I am also ready to finalize the 2014 tax return and there is an NOL created on his return. The client has already fil… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
For a ny state partnership tax return, if you file an
For a ny state partnership tax return, if you file an extension but don't pay anything and then end up owing a lot. Do they still recognize the extension or do they charge a failure to pay penalty (fo… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I file form NYC-3L and add to my tax the first estimated
I file form NYC-3L and add to my tax the first estimated payment for the following year, I'm trying to find this amount of my tax return where it was included in current year taxes due, the 1st estima… read more
Fred Rook
Fred Rook
Corporate Controller
BSBA
32 satisfied customers
Is a tax return less likely to be audited if it's prepared
Is a tax return less likely to be audited if it's prepared by a CPA or simply a tax person? Secondly, our Rotary Club is a 401 C for we have a 401 c 3 Foundation the question is can individual members… read more
socrateaser
socrateaser
1,031 satisfied customers
My tax preparer is with Liberty Tax, and filed incorrect
Hi. My tax preparer is with Liberty Tax, and filed incorrect returns without my knowledge or significantly … read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
734 satisfied customers
Can a taxpayer file an amended return to elect into the
Can a taxpayer file an amended return to elect into the installment method if the original return was filed error without the installment method.… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Is there a statute of limitation for sales tax in ohio?
Is there a statute of limitation for sales tax in ohio? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,473 satisfied customers
R I TOWNS AUTO TAX - IS THE STATUTE OF LIMITATIONS 15 YEARS
R I TOWNS AUTO TAX - IS THE STATUTE OF LIMITATIONS 15 YEARS -FOR THE COLLECTION OF PAST AUTO TAXS … read more
Tax.appeal.168
Tax.appeal.168
Tax Accountant
3,861 satisfied customers
I have to file an amended return 2015. I used H&R Block tax
I have to file an amended return 2015. I used H&R Block tax software. Can I use H&R Block software to amended my return? … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,220 satisfied customers
When will 2015 amended returns be processed, I filed an
I filed an amended return 1 year ago. IRS has not yet begun processing. How long does it take? … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,220 satisfied customers
What is the deadline for the last federal tax return for a
What is the deadline for the last federal tax return for a closed business? Is it within 2 months after the company is closed? Thanks.… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,220 satisfied customers
I am filing an amended return that pertains to some patent
I am filing an amended return that pertains to some patent expenses (on schedule C) I did not expense on the original 1040 and 540 (they remained on the balance sheet). I have now expensed them and ha… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
TAX: Is there a statute of limitations for filing tax
TAX: Is there a statute of limitations for filing tax returns? Taxpayer has not filed since 2005 and wants to file 2006 - 2014. 2015 and 2016 are filed.… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Please estimate my IRS and CA-540 tax liability for 2017.
Please estimate my IRS and CA-540 tax liability for 2017. Plan to file, "Married filing separately" Gross salary income: $185,000. I will take early withdraw from IRA and 401K funds towards purchasing… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Can amended returns be filed for an individual or person who
Can amended returns be filed for an individual or person who is currently deceased using 1040X? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Does the state of Arizona have a statute of limitations on
Hello, does the state of Arizona have a statute of limitations on personal income tax debt? Thanks Greg … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x