TaxMamas TaxQuips

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1. Mark Says:
   April 28th, 2009 at 12:36 am

   The IRS thinks I owe them money from 1999. I have proof to the contrary, but they say I can't file a 1040x after 3 years. Even the Tax Advocates told me that. My father acting as my power of attorney filed it through H&R block. They forgot to show $17,000+ that was paid to a sub-contrator. I even have the sub-contractors tax return for 1999 showing I paid her. I have no refund coming. But they did take my stimulus check last year. And they probably will this year. The Advocate never filed the proof. She dumped my case because she wanted a letter from me explaining to the IRS what happened and I didn't get it to her quick enough. So she never filed it. I have called the Advocates three times since and they keep saying they will reassign another, but its been three years now. All I get from them is it will disappear in 2010. But I still have the State of WV after me as well. I don't know what to do.

2. David Toelkes Says:
   April 28th, 2009 at 10:03 am

   You can file an amended return as far back as you need to. You probably can't get a refund when you amend a return you filed more than three years ago, but this should not stop you from filing an amended return that keeps you from paying more taxes.

   Why do you need Tax Advocates? Can you prepare the amended return yourself and file it?

3. don Says:
   April 28th, 2009 at 05:32 pm

   Well it depends.. If you filed your orignal return showing the income, then the IRS CAN require the taxes be paid before the amended return will be considered. You then have two years to file the claim.

   If the taxes were increased due to an audit then you should be requesting an audit reconsideration.

   The three year rule is for claiming a refund from the original filing and doesn't appear to apply in your case.

   Suggest you call the Taxpayer Advocate and request the name of her manager.

4. Mark Says:
   April 29th, 2009 at 01:50 am

   Me again,

   I got an advocate because the IRS suggested it. I got the run around the first four years. The rest as follows I just sent directly to Eva:

   Hello Eva,

   I was first notified in 2002 that there was a problem. I talked with someone from the IRS (agents name), but they couldn't tell me what was wrong. I thought it was over sales tax on sodas, coffee, chips, and candies I sold at my coffee shop in 98' that I didn't pay until 99' because I lost my shirt and was broke. I was very busy working and going to college in Ohio at the time. My father's name was on a contract with mine for a United States Postal Rural Route in WV(since 87'). I had ran the route for awhile and then hired a sub-contractor to do it. My father and my mother ran the route next to it. My father did all the negotiating with USPS and overseen the route. Our tax lady for years had diabetes and lost one of her feet to the disease and quit doing taxes. So my father took it to someone new (H&R Block). He was making sure it got done because I was struggling to get by and go to college. The route wasn't really even making anything for us. However, the lady who was sub-contractor was and still is like family and we didn't want to kick her to the curb, so we kept enough to cover upkeep, taxes, and insurance on a spare car in case hers broke down. I never saw a copy of the tax return until I was told I could get one from the IRS right before they destroyed them. My mother has alziehmers and had lost the original by 2004. She also misplaced all kinds of other records. In 02' I sent Mr. agent the copies of the cancelled checks from where I paid the sales taxes for 98' that I paid in 99' and I didn't here from the IRS again until 2004. They still couldn't tell me what was wrong. Just that I owed them money. I finally got a copy after the advocates told me how to get a copy (I don't remember exactly when, but I only had a month or so before they destroy them or so I was told). My tax advocate would never answer my calls or call back. She only sent letters with very little commentary and four pages of cover letter explaining how I could pay the debt. She sent that every letter I got from her. I wasted close to a year waiting for her next letter at three month intervals. I tracked down everything I could and sent it back in a timely matter. The request for the letter came at an inopportun time and I forgot about it for a month. I sent it to her and a month later she sent me another letter with the afore mention debt payment cover letter saying she cancelled my case just before she received my letter. I have wasted a year and a half waiting for them to assign a new advocate. Because thats what they tell me everytime I called them back. I get to explain all this and they tell me to wait for another letter and it never comes. I've did that three times. And still nothing. My health is not that great. Most days I don't make it out of bed, but to go to the bathroom and the refridgerator. I have at a minimum of four things wrong with my back. I have two pinched nerves at C5 & C6. I have two deteriorating discs in the lumbar. A destention in my thoracic. And the cartilage in my right shoulder blade is gone. I have nerve damage in both my hands. I also have trouble with my legs and bowels. Both stemming from my back troubles. I can't recall the urgency at the time the letter was requested. I think I was getting sued for a real debt at the time. As being out of work since 2000; I owed some old credit card debts. I guess after six years of dealing with it the urgency had left me. But I had sent her everything else. I sent her a copy of the original tax form. A lady at the Huntington WV IRS filled out the 1040X for me. I had also sent a copy of the sub-contractor's tax return and a letter from her. That was what she asked for in her previous letter. Then she wanted a letter from me. I was expecting a request for a birth certificate, proof of US citizenship, and blood and stool samples next. But all I got was a cancellation letter. I was disabled in 2003. I had been struggling to get by since 2000 when I got hurt. I don't have much. I only receive $5,000+ a year to live on. I have learned a lot from your tax quips. I am trying to get help from the BVR and RSC to perhaps start my own business. But Its hard to make progress when you are laid up all the time. I do not expect a return or any damage to my pitiful income as it is. I just want the IRS and WV off my back. It would be nice to get my stimulus check back and the one for this year. But I ain't holding my breath. If you could tell me where to send it or who to talk to. I would appreciate it. Everytime I call the IRS I get someone new. They haven't assigned me any one person to deal with (since Mr. agent). I can't count how many times I have had to explain this whole thing over the phone to someone who just wants to go home or lunch after hearing the entire jumbled up mess. The sub-contractors tax return proves that I never owed them anything. I actually paid them more tax than I should have; because H&R Block also forgot to deduct the upkeep, taxes, and insurance for the spare vehicle as well. I have tried more times than I can count to resolve this. So I am not procrastinating. I just don't have the knowledge that you have on taxes.

   Thanks for reply and for any help you can offer;

   Sincerely, Mark B.

5. Dave Fazio EA Says:
   April 29th, 2009 at 07:18 am

   With income of $5K per year, Mark should look into a LITC (Low Income Taxpayer Clinic) that offers representation in tax controversies in his area. They can work to have Mark's account considered CNC (currently not collectible) or possibly prepare an Offer in Compromise citing "Doubt as to Liability".

   This is also an excellent example of why Enrolled Agents should be contacted when a tax controversy arises. EAs are licensed to represent taxpayers at all administrative levels of the IRS including examinations, collections and appeals. Most EAs know how to cut through the red tape and resolve controversies quickly.

6. Don Says:
   April 30th, 2009 at 01:56 pm

   My last chance response (if you have the proof or resolve your issue) is to write to your Congressman or Senator. They will forward the inquiry to the IRS and will respond to you and your Congressman.