Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I am looking for a tax attorney to help with Federal appeal…

Customer Question
I am looking for...

I am looking for a tax attorney to help with Federal appeal for return of estimated payment money confiscated by IRS for my not having filed within three years.

Accountant's Assistant: What state are you in? It matters because laws vary by location.

Michigan . . . though the issue is Federal taxes.

Accountant's Assistant: Has anything been filed or reported?

Oh yes; and a year ago I received a notice that they were keeping my money. I appealed, but was denied and told my only recourse was Federal court.

Accountant's Assistant: Anything else you want the lawyer to know before I connect you?

That the amount they appropriated was $10,000.

Submitted: 3 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 1 day by:
1/6/2018
Tax Professional: James Daloisio, Tax Attorney replied 3 months ago
James Daloisio
James Daloisio, Tax Attorney
Category: Tax
Satisfied Customers: 338
Experience: 24 years of continuing education and experience.
Verified

Hi, my name is ***** ***** welcome to Just Answer.

Your post leads me to a number of questions about your case. However, let's begin with an overview of what happened:

1. The IRS does not "confiscate" or "appropriate" your money. Your post says that the funds involved were "estimated payments." So to begin, is it correct that you made estimated (quarterly) income tax payments for one or more tax periods, each ending on December 31st of their respective years?

2. Estimated payments are generally associated with self-employed persons. Were you self-employed and were the payments related to your business?

3. Despite making estimated payments, you did not file tax returns. Here's where it gets tricky.

A. If you received earnings in the form of wages, self-employment income, etc., the payors will report those earnings to the IRS, which will determine, based on those earnings, whether you had a filing requirement.

B. If your earnings were high enough ($400 for self employment, $10,000 for wages) the IRS would have sent you a demand for tax return for each year that they determined you had a filing requirement

C. If you failed to respond to the demand for return, the IRS will take the documents that they have showing your income and create an SFR: "Substitute For Return." This tax return uses only the information in yourW-2 and/or 1099-MISC and does not take into consideration any deductions that the IRS may not be aware of. Typically, taxpayers wind up owing money for each SFR.

D. If you've made estimated payments, they will simply apply those payments to each tax year for which they've determined a deficiency.

4. Now, here's the rub. Suppose you've looked at those returns and realized that there were a number of deductions and/or credits that were available to you that the IRS didn't take? Your course of action would be to file an amended return, form 1040-X, for each year, and get a refund of the over paid taxes.

A. BUT: Section 6511 says you can only receive a refund by filing the appropriate claim "within 3 years from the time the return was filed or 2 years from the time the tax was paid," whichever is later. (26 US 6511(a).) Being that you didn't file a return, you're looking at a two year period from the date of payment, which is the date you made your estimated payments. If your claim for refund is filed later than that, it will be denied because Section 6511 is quite clear: "No credit or refund shall be allowed or made after the expiration of the period of limitation prescribed in subsection (a) for the filing of a claim for credit or refund, unless a claim for credit or refund is filed by the taxpayer within such period." (26 US 6511(b)(1).) After that, your overpayment is deemed to be a gift to the Treasury.

5. I'm presuming that you are at this point in your case and you want to file a refund claim in Federal District Court or in the Court of Federal Claims. To initiate such a suit it has to be filed within two years of receiving the first notice of disallowance of your claim.

Now that you are at this point, it might be wise to take a breath and consider the basis for your claim:

- Did you not make enough to have a filing requirement?

- If you had a filing requirement, did you not owe as much as the IRS claimed you owed?

- Did you have a good reason for not filing tax returns for the applicable years?

The court is going to look for some legal basis for your claim, and for some valid reason why the original claim was not timely. Or perhaps it was and the IRS just did not agree on the liability issue. In any event, there are several threshold decisions to be made.

1. Which court. You can choose between the District Court or the Court of Claims. Both have jurisdiction to hear refund suits and the decisions of both courts may be appealed. If you have case that you feel might be sympathetic to a jury, you'd choose District Court.

2. Basis for suit. Your refund suit must clearly state the grounds for the claim. The general rule is that a refund suit in District Court is limited to the grounds stated in your original claim.

3. Did you owe the tax? If not, why not? Was this stated in your original refund claim?

Please take a look at this response and comment appropriately, and I'll try to guide you from there. Thanks.

Ask Your Own Tax Question
Was this answer helpful?
Ask Wallstreet Esq. Your Own Question
Wallstreet Esq.
Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 586
586 Satisfied Customers
Experience: 10 years experience

Wallstreet Esq. 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

1,338 satisfied customers

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

Richard

Richard

Tax Attorney

4,451 satisfied customers

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

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

56 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,124 satisfied customers

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

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 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.

< Previous | Next >

Related Tax Questions
If there is no federal tax liability in 2016 because there
If there is no federal tax liability in 2016 because there was no income in 2016, what is the minimum estimated tax that needs to be sent with the extension for 2017 to avoid a penalty?… read more
abci168
abci168
Principal
27 satisfied customers
Filed form 1040 form took the standard deduction, I am now
filed form 1040 form took the standard deduction, I am now filing the new york state, … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
The IRS sent me the form 1041-ES quarterly estimated
Hi, the IRS sent me the form 1041-ES quarterly estimated payments for a trust that was dissolved in 2016. There was no income in 2017. What do I do? … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
On form 1040, line 27, what is the deductible part of the
On form 1040, line 27, what is the deductible part of the self-employment tax requiring schedule SE?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,948 satisfied customers
Question regarding my 2017 federal tax return what can i
Hello Question regarding my 2017 federal tax return what can i deduct from my refinance with cash out for home improvement… read more
Shan-Nel Simmons
Shan-Nel Simmons
Tax Professional/Owner
Master\u0027s Degree
43 satisfied customers
On line 17, Form 1120 ,C Corp Federal Tax return are state
On line 17, Form 1120 ,C Corp Federal Tax return are state corporate income taxes deductible.If I am doing my Federal C Corp returns for 2017 are the state corporate income taxes due but not paid yet … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,948 satisfied customers
I filed my state and federal taxes electronically and then
I filed my state and federal taxes electronically and then realized that I accidentally omitted something that significantly changes my refund from the federal and my payment to the state. I need to f… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,948 satisfied customers
Paying quarterly estimated taxes for a 2 member LLC (
Paying quarterly estimated taxes for a 2 member LLC ( Husband and wife ) that is operating as a Partnership and did not elect to be classified as a corporation... Am I understanding correctly that thi… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,074 satisfied customers
I'd like to file an amended return and include tax
I'd like to file an amended return and include tax deductions for repairs completed on my 4plex using a 203k fha rehab loan. Do you know if there are limitations in using tax deductions when the work … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Ready to mail off printed TurboTax 2017 Federal Tax Return
Ready to mail off printed TurboTax 2017 Federal Tax Return and instructions on what to mail state "Attach first copy or Copy B of Form(s) 1099 to the front of your Form 1040." I'm confused on what for… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,948 satisfied customers
My Federal tax return was rejected because of EIN number for
My Federal tax return was rejected because of EIN number for my employer. How do I correct this error?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,948 satisfied customers
I see Form 1040 is for misc income. Does that activate a
I see Form 1040 is for misc income. Does that activate a self employment as? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,948 satisfied customers
For estimated quarterly taxes I am using from 1120W for my
For estimated quarterly taxes I am using from 1120W for my LLC sub-S. Is this the correct worksheet if I file the 1120S and K1 for the business each year? I am dusting off the LLC and using it again f… read more
abci168
abci168
Principal
27 satisfied customers
Receive a 1099-MISC for income earned when working for an
Receive a 1099-MISC for income earned when working for an HVAC company. Do I have to pay self-employment tax or can it be filed as income on a 1040 without doing a schedule C or F. It was income only,… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I want to ask a question about Income tax return form 1040..
Hello I want to ask a question about Income tax return form 1040.. I want to fill form but My wife doesnt have any ssn number. She is housewife and she has no income. Which option should I choose from… read more
James Daloisio
James Daloisio
Tax Attorney
338 satisfied customers
IRS says for State and local taxes on 1099 misc income given
Second opinion] IRS says for State and local taxes on 1099 misc income given to contractor. If the sales taaxes are imposed on you as a buyer and collected from you by the service provider, do not rep… read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
828 satisfied customers
IRS says for State and local taxes on 1099 misc income given
IRS says for State and local taxes on 1099 misc income given to contractor. If the sales taaxes are imposed on you as a buyer and collected from you by the service provider, do not report the sales ta… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I received email stating that our 2017 federal tax return
I received email stating that our 2017 federal tax return prepared via TurboTax had been completed and filed and accepted by the IRS but no refund amount was stated therefore current refund amount and… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,948 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