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PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4666
Experience:  35 years tax experience, including four years at a Big 4 firm.
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The IRS filed a tax lien which moved into my credit file. In

Customer Question

The IRS filed a tax lien which moved into my credit file. In 2009 and 2010 my income went below the filing limit and I thus did not file. I sent them a blank signed 1040 form and told them to put any income information which they allegedly have on the form and put it into the system.
They assessed me $ 5,000 for frivolous filing and then filed a lien on that amount. Talking to them on the phone got me nowhere. They told me to file an appeal which I believe was properly done. They denied the appeal.
Submitted: 2 years ago.
Category: Tax
Expert:  PDtax replied 2 years ago.

Hi from just answer. I'm PDtax, and can assist.

Your filing was considered frivolous, and penalized. And your appeal was rejected. First, let me explain why. Then, I can suggest how to fix this.

Expert:  PDtax replied 2 years ago.

IRS considers noncompliance with the tax laws almost like a personal offense. As such, they come down hard in this area. They have to.

Filing nullity returns, and telling the IRS to fill out the forms with information they have, is not considered filing a return, which we all have to do as citizens (unless we meet the threshold limits of income so we don't have to file).

Expert:  PDtax replied 2 years ago.

A better course would be to file accurate tax returns, reporting your income, and asking for an abatement of the penalty. You can get the information IRS has about your income for those years via their web site, or through the services of a tax pro, which I recommend you engage.

Expert:  PDtax replied 2 years ago.

Hitting a tax pro, like a CPA or tax attorney, even an enrolled agent, will add credibility to your filings. You may need that to get the penalty waived.

The tax pro can prepare and sign returns as preparer, v and craft an abatement request that will get more serious consideration. Im afraid that once you are labeled as a tax protester, which you likely are, you have zero credibility with IRS.

Expert:  PDtax replied 2 years ago.

Preparing and filing the returns, and hiring a tax pro, shows you are taking these matters seriously and want to resolve them. It also gives you another chance to fix the problem without the more expensive options of appeals or tax Court, both of which will cost thousands in tax pro fees. Filing returns, with the signature of a tax pro, is the cheapest, best way to put this unfortunate choice behind you

Expert:  PDtax replied 2 years ago.

Thanks for asking at just answer. Positive feedback is appreciated. I'm PDtax.