IRS took income taxes twice! please help!

[aznbala]

pm sent Mouse

 

[deen_ad]

Funniest thing I've read in days.

Not really, they do have to pay interest on overpayments.

 

[deen_ad]

No offense meant but why is this thread in the general firearm discussion area?

Dang! I can't even imagine the income or scenario where I would have a $10k tax bill.

Ours was well over double that and that was after deductions and we didn't sell any stock or cash in 401's etc. just straight wages and retirement so I can believe it

 

[ejmpnu92]

Kevatc,

I lost a house in 2011 due to a voluntary repossession. Basically I handed back the keys to the lender, after trying to sell the home. Because this was in California, the lender sent me a 1099 for the "fair market value" of the home. It nearly doubled my yearly income in less than a second. The end result, $9,957 for fed income tax and $3589 to the state. I sorta laugh about the state thing because the money went to Oregon, not to California. It took me 8 months of payments to get it paid off... glad it is over...just finished paying it off last month.

 

[dolooper]

One other recommendation: get your congressperson involved. A phone call or two and a few words on a congressman's letterhead can speed things up noticably.

My parents were audited 11 years in a row. Nothing would stop they audits. They finally gave up with the accountants and the lawyer and got their congressman on the case (they loathed their congressman by the way). The audits stopped. They haven't been harassed since and its been 20 years.

 

[mouse]

I must be reading something wrong it looks to me like the IRS carried out an automatic withdrawl that you set up to pay your taxes. Then YOU SENT them a check for 10K. I don't see where they took the money twice. I do see where you sent the money the second time.

Hope you get it back.

correct. I allowed them to automatically withdraw, and also sent them a check thinking my automatic withdrawal request didn't go work because it had been 4 months.

 

[mouse]

Who does your taxes? When self employed, the IRS generally wants you to pay quarterly's based on your last year filings.

This was our first business year, so we were allowed to do a yearly payment last year. This year and beyond, we pay quarterly.

 

[Kevatc]

Kevatc,

I lost a house in 2011 due to a voluntary repossession. Basically I handed back the keys to the lender, after trying to sell the home. Because this was in California, the lender sent me a 1099 for the "fair market value" of the home. It nearly doubled my yearly income in less than a second. The end result, $9,957 for fed income tax and $3589 to the state. I sorta laugh about the state thing because the money went to Oregon, not to California. It took me 8 months of payments to get it paid off... glad it is over...just finished paying it off last month.

So if you no longer own the home and the bank takes it back how is it a taxable asset to you? Anyway, bummed you had to go through that. I hope things turn around for you and you can get back on your financial feet.

 

[deen_ad]

So if you no longer own the home and the bank takes it back how is it a taxable asset to you? Anyway, bummed you had to go through that. I hope things turn around for you and you can get back on your financial feet.

If the lien holder "forgives" the balance owed on the contract that's considered to be income (since you owed it but didn't pay it) and you're taxed on that basis.

 

[SynapticSilence]

Go to the IRS office in downtown Portland and see a service agent in person. I have had so many problems resolved that way you wouldn't believe it. They can access your account in the system which should clearly show the double payment and probably can initiate the action right away. You don't need an appointment, although you should allow 2-3 hours just in case they're busy. It's a take a number sort of thing. But they're helpful, although you have to remember they're still IRS employees.

 

[ejmpnu92]

If the lien holder "forgives" the balance owed on the contract that's considered to be income (since you owed it but didn't pay it) and you're taxed on that basis.

Yeah, exactly the situation. Thanks.

 

[oknow]

QUOTE=deen_ad;880769]And you should get interest since they have your money.[/QUOTE]

[

 

[MountainBear]

Get a professional. Best advice on almost any complicated situation. Prayers to you!

 

[SCARed]

You might want to talk to a tax pro about that. For the past several years at least you don't owe taxes on foreclosed properties. At least on your primary residence.

I was in the same boat last year and I had known going in there wasn't any tax liability.

 

[xlsbob]

I owned my own business for over 12 years, thanks to blowing off the IRS I've been a construction worker for the last 20. No real regrets, but in the end the IRS always wins.

 

[Redcap]

I owned my own business for over 12 years, thanks to blowing off the IRS I've been a construction worker for the last 20. No real regrets, but in the end the IRS always wins.

They would like to, but I assure you...they don't always win.

 

[SCARed]

They would like to, but I assure you...they don't always win.

I'll second that!