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Just got a letter from these people, I am 77 and have had no income e…

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just got a letter from...
just got a letter from these people, I am 77 and have had no income except my SS. The letter say I owe 776.67 for 2005 and 5,673.43 for 2005 also. what moore do you want...I lost what $ I had in Morgan Stanly stock manipulations though I had very little left...I had to short sell my home and got nothing out of it and have lived with my son and daughter in law for the past 10 years...I have had no income since then
Submitted: 2 years ago.Category: Tax
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Answered in 35 minutes by:
7/2/2015
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,207
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Hi - I'm so sorry to hear .You've reached JustAnswer.com ... a web site that puts experts with verified credentials togther with users who have questions.I've been providing tax and other financial advice for over 30 years..You DO have a couple of options ... there is a process called Offer In Compromise which allows you to make an offer for MUCH less than what you owe (based on comparing typical living expenses and your level of assets with what's owed)..You can read more about that by clicking here -> http://www.irs.gov/uac/IRS-Announces-More-Flexible-Offer-in-Compromise-Terms-to-Help-a-Greater]umber-of-Struggling-Taxpayers-Make-a-Fresh-Start ... (It's sometimes referrred to as the fresh start program).Another option would be to set up a payment plan, which can be set up for as long as 70 months.You can do that onine by clicking here: -> http://www.irs.gov/Individuals/Online-Payment-Agreement-Application.THe worst case scenario is that (if you do nothing) they can put a lien on financial accounts (and up to a 15% garnishment of social security)..Hopefully, this helps you with the lay of the land here, to know what the options and worst case scenario is..Please let me know if you have any questions at all. Lane.If this HAS helped, I would appreciate a positive rating (using the stars or smiley faces on your screen)… That’s the ONLY WAY I'm credited for the work here. … However, if you need clarification, or want to discuss this issue further, be sure to come back here, so you won’t have to pay for an additional question.
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Tax Professional: Barbara, Enrolled Agent replied 2 years ago
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 5,998
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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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,
Barb
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Barbara
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 5,998
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