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Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2430
Experience:  Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
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I'm Clifford W. Nelson. I am 71 years old and live alone. I

Customer Question

I'm Clifford W. Nelson. I am 71 years old and live alone. I am presently trying to maintain 3 houses, 3 lots in the city of Carlsbad, New Mexico; and I get up before the sun rises and work until it sets almost everyday. Today I burned about an acre of weeds on a acreage that includes a oil company deep salt water disposal well that was drilled on my property. While controlling the flames with a shovel; It was very hard and dangerous work. Only once did the fire go into the neighbors cow pasture but I got it out when the wind settled down some. The two empty houses in Carlsbad are in bad need of repairs and one of them has been condemned because I dug a basement (by hand) that went beyond the City building code for depth, it was to be a exercise pool for my Mom who had arthritus very bad in her knees, but She passed on before I got it finished.
The first year of the well,2013, I made about $130,000 from the oil company and had to pay about $25,000 in Fed. and state taxes. That was more money than I had ever made in my entire life, but I also had to have surgery from an old accidental gunshot wound too remove scar tissue that blocked my intestines. So, I didn't have medicare B. I have had to move back to New Mexico because of my self designed house being condemned and I wanted to finish it. The round riverbed rocks I layed by myself and are beautiful and very artisticly done as many people have said. A shame that the people in the neighborhood aren't very artisticly oriented and some have gang and drug problems. That's the reason I went to Montana, A guy came up to my backyard fence with a 38 revolver. I got out of site and found out later he thought I knew about him and his girlfriend cooking drugs just across the alley. In my house when I returned I found several drug needles buried just outside the wall of my carpenter workshop the city inspectors made me tear my shop down. Anyway I don't smoke, drink, or or do any drugs or be dishonest. I like myself because I am a really nice and talented person. The IRS says I have to make prepayments on the disposal well as of late, I was told I was in an "other" catagory on the 2013 returns and actually got money back when they told me I had overpaid. Now they have written me a letter after I was threatened to be penalized on June 06 because I didnt make any prepayments? Then I got a letter from the IRS saying to wait that they were still trying to work out their problems with my taxes and for me to wait. I havn"t been able to get anyone on the phone to talk to as they say they are very busy with their recordings. I am a man who loves hard work and being creative. I do not deserve to be penalized because They didn"t tell me about it before! Could or would you find out something for me. I took all my tax papers to a Church where an E-Tax service told me how much fed and state taxes I owed and I sent it in and just had less than $500.00 in my account afterwards.
Submitted: 2 years ago.
Category: Tax
Expert:  Anne replied 2 years ago.
Hi ***** been preparing taxes for 27 years and I'll be helping you tonight.
I'm glad you're online so that I can ask you questions as I need to.
Expert:  Anne replied 2 years ago.
I'm not sure I totally understand your question.
I understand that you are being paid for oil rights on your property in NM.
I also understand that you own 3 houses . 2 I assume are in NM and in MT?
I also see that 1 of the homes in NM has been condemned, and you want to fix it up.
You also mention that the IRS wanted a pre payment for the well, that you had fallen into an "other" category.
My first question is did you get placed in this "other category" because you no longer lived in NM ?