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09-20-2021 09:01 PM
@Mindy D You are correct. The problem as I see it is moving from a non-income tax to a state income tax. Ignorance is blissed, however not sure with the IRS.
09-20-2021 09:29 PM
On SS and few assets....and owed $23,000? There is definitely something wrong here. Was she married in a community property state, and this has something to do with the ex-husband's back taxes?
09-20-2021 09:41 PM
I agree that something is "off" here: if she is on a limited income ( to me that's under 50k a year) she probably did one of several things: cashed in her 401k, sold a house, got a large check for leave etc when she retired, got an inheritance or a divorce settlement. Additionally, it appears she owes the money to a state, not the Feds. Appears that a CPA is the place to start resolving this mess.
09-20-2021 10:14 PM
I agree with what a previous poster said about making sure the letters are from the IRS. My sister in law's dad got a phone call from someone identifying themselves as the IRS and told him he owed 5,000 and if the money wasn't sent there would be a warrant for his arrest. He sent it then got another phone call telling him he owed more. This time his wife was made aware of it and she told him not to do it. Turned out to be a scam but he still lost the 5,000. Please have your friend check this out throughly. Best of luck to her.
09-20-2021 10:50 PM
Saying goodnight by reminding all who take Required Minimum Distributions that it's time to do it for 2021 after last year's break. Have taxes deducted so there's no surprises next April.
09-21-2021 11:24 AM
I am a CPA and can hopefully provide some helpful advise.
1) NEVER, NEVER, NEVER use a tax relief agency - most of them are scams and overcharge for their services
2) For the amount in question, you do not need a tax attorney - the professional fees will be in excess of the amount due.
3) A well versed CPA will be able to help you out - from reading b/w the lines, it seems as if the taxpayer got hit with substantial penalties, which the IRS uses to encourage timely payment of taxes owed. However, a good CPA should be able to get the penalties waived if this is the first time tax payer is requesting a waiver. You did not mention what state you are in - to locate a good CPA, I would recommend asking friends first - AGAIN, DO NOT RESPONDE TO ADVERTISEMENTS ON THE INTERNET!!. You can also contact your local county CPA society for recommendations and many have senior clinics, where CPA's work for free or for a substantially reduced fee to help out taxpayers such as the one being discussed. If there is no county CPA society, reach out to the state level.
I hope this helps you out
09-21-2021 01:14 PM
I just read an e-mail that IRS sent out large amount of premature notices for 2019 tax returned filed. Please read all the documentation included that your friend received. She can also look at the top of the letter to fine out the auditor number to call. Be sure when ever talking to them get their name and badge number and write down the time they answered your call. She need to contact HRBlock also, if they are not open year round in your area she may have to make an appointment. I am hoping that this help you but she needs to use a preparer who can help her with filing her taxes. If she needs a CPA get one who is knowlegable in taxes because most CPA's have others in their offices who do the taxes and they just sign off on them. I hope this help you but I wish you luck in resolving the matter. By the way if you have an IRS office near you try it,bring your copies of your tax return from that year or try to get a transcript of what was done.
09-21-2021 04:46 PM
09-21-2021 05:30 PM - edited 09-21-2021 06:12 PM
I want to thank all of you who have posted concerns, advise and insight. My friend is a bit better today however, she is furious with herself for not being more informed about taking money out of her retirement fund and not knowing to take federal taxes out. She is currently researching tax attorneys who are IRS CPA's and will be making an appt in the next couple of days. I feel HR Block who did her 2019 and 2020 taxes should have advised her on such matters and they may bear some responsibility. I'm not sure if she can get a reduction or reprieve. I will post back on what if any resolution can be determined, but maybe she can get a reduction, we'll see.
09-21-2021 06:18 PM
So she didn't pay income taxes on her IRA/retirement withdrawal?
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