So I get home and the wife says she’s got bad news: A letter from the IRS saying we owe $4,000 on our 2018 taxes.
Apparently, she sent all the right paperwork to our tax preparer, but when the preparer returned the completed forms she forgot to include one. My wife failed to check that and signed the return (and got me to sign off, trusting her) and sent it off.
So here we are. My wife is afraid I’m going to divorce her. (I’m not.)
Anyone have an experience like this? Do we have any recourse? That 4 Grand could buy a lot of Super Bowl swag. [Reply]
If you make a deal with the IRS they will MANY times remove entire years of penalties and interest. I know personally as I got my 6 years of past due Fed Taxes reduced to 18% of what the total was.
On the other hand, most states are god damn brutal and not only do they NOT reduce your tax burden, they are very quick to confiscate 100% of your pay until their entire bill is paid. I also painfully know that first hand as I thought they were only allowed to take a PERCENTAGE each paycheck like 10-20% but I was misinformed. They can take 100%. It's brutal. :-) [Reply]
Originally Posted by scho63:
WRONG as wrong can be. :-)
If you make a deal with the IRS they will MANY times remove entire years of penalties and interest. I know personally as I got my 6 years of past due Fed Taxes reduced to 18% of what the total was.
On the other hand, most states are god damn brutal and not only do they NOT reduce your tax burden, they are very quick to confiscate 100% of your pay until their entire bill is paid. I also painfully know that first hand as I thought they were only allowed to take a PERCENTAGE each paycheck like 10-20% but I was misinformed. They can take 100%. It's brutal. :-)
They also cleared it for my wife when our CPA fucked up her taxes before we were married. She ended up getting a refund after initially owing over 100K in taxes as well as getting the interest rescinded. In her case, she sold a house for over 400K and for some reason the CPA screwed up and the entire proceeds of the house was shown as income. She actually sold the house for less than she bought it for and had to bring like 8 grand to closing to pay off the loan. So instead of paying capital gains tax on 400 grand, the amended return cleared the balance and actually gave her a refund. But it was still a royal pain in the ass dealing with the IRS and the CPA. [Reply]
Originally Posted by siberian khatru:
That’s what I’m hoping, too. Waiting to hear from her. Just wondering if anyone here knows.
You should be able to submit an amended return with the form.
Without knowing your whole details and the whole shebang, for 1040X, generally for a tax refund, this form must be filed within 3 years after the date that the original version was filed, or within 2 years after the date that the tax was paid, whichever is later.
Also, if you anticipate a refund on your current year and if you owe prior year taxes, likely the IRS will apply that refund to prior years before refunding it out back to you or applying to your 2020 taxes.
And you should also talk to your accountant that they should bear some responsibility for this as well. [Reply]
If you work and get W-2's, withhold more than you normally do, if you are able to. Yes, it doesn't accumulate interest at all, but it's another safe avenue to pay/lower your tax bill once the new year comes around.
If it's 1099's, then well, not much you can do about that one. But you can try to lower it by putting some of the money into Self-employed SEP, SIMPLE, and qualified plans, which would be an deduction of your income. [Reply]
If you work and get W-2's, withhold more than you normally do, if you are able to. Yes, it doesn't accumulate interest at all, but it's another safe avenue to pay/lower your tax bill once the new year comes around.
This seems like terrible advice. You're basically giving the government an interest free loan in exchange for what exactly? You end up paying the same amount in the end, and you could have used the income you prematurely forked over to invest in something that could have actually made you money. [Reply]