Tax know-it-alls, check in, please! The IRS just sent me a bill --

[elehhhhna]

I didn't do the 2% reduction calc. off our mileage deductions so they took all of it out and recalculated our tax higher.

Obviously a mistake on my part, but when I call them will they probably have me just refile w/ the right calculation or what? And how are they about arranging payments? This was for my 2010 return and I will owe them a few grand which I simply do not have acces to right now.

Talk me down (sorta ) - never dealt with them before...

Thank you in advance.

[PoliticAverse]

1. You said they sent you a bill, which would imply you just send them a check and it's all done...

no refile necessary. Did they charge you any interest/penalty ?

Note that if you think the IRS made an error or you can find additional deductions for your old return you can file an amended return:
http://www.irs.gov/taxtopics/tc308.html

[elehhhhna]

6. I made the error, so they took out the whole mileage/work expense

deduction out, and recalculated the tax. I'm just wondering if/HOW they'll let me fix it and make payments on what I'll still owe (I know I'll owe them - I goofed up another part, too, and should stop doing my own taxes, obviously.)

[PoliticAverse]

2. As to payment plans, see...

http://www.irs.gov/individuals/article/0,,id=243335,00.html/

[proud2BlibKansan]

3. When you call you will be on hold forever

Be prepared.

But they are great about payment plans.

[HopeHoops]

4. I have. Every time you call you get someone else and spend half an hour or more explaining.

Then five days later you receive a computer-generated statement of the way they think you fucked up that's identical to the one they sent you the last time, and the time before that, and the time before that, etc. I finally got mine thrown into "un-collectable" status which pretty much means that they stop sending you shit and calling and just confiscate your refunds until the debt is drawn down. The phone is a fucking black hole.

[intheozone]

5. I can help you.

You will not need to file a new return. The IRS found and corrected a math error on your return, it has already corrected your 2010 tax account. The IRS can correct math errors without contacting you first or issuing you an official notice, it just makes the correction and bills you for the underpayment, or issues a refund if the error is in your favor.

If you owe only a few thousand, you can call the telephone number on the notice of amount due and ask for a 120 day extension of time to pay. You will be charged interest, but the current rate is only 3 or 4 percent per year so if won't be too much. You also will be charged a late payment penalty of 1/2 percent per month, calculated on only the tax amount.

Good luck, hope this info helps.


(edited to fix typo)

[PoliticAverse]

7. You can request a payment plan online now, no need to call...

http://www.irs.gov/individuals/article/0,,id=149373,00.html

[elehhhhna]

9. i really appreciate all this help. you rock, PA.

[elehhhhna]

8. when they corrected the error, they took out the whole deduction

rather than adjust the amount downward and recalculate the tax. It should be a 6K deduction, which I put in at 8K, because i failed to first subtract the 2% (@2K). Rather than figuring the tax withthe correct 6Kdeduction, they took it ALL out. I should still have that 6K deduction but it's not in their calculation...

[PoliticAverse]

10. Sounds like you'd benefit from filing an amended return....

http://www.irs.gov/taxtopics/tc308.html

You may want to get a tax professional to do an amended return for you, they might be able to find some additional
deductions for your past return.

[ananda]

11. That is a good way to go.

Last year I got a package from the IRS regarding a mistake I made
on my 2010 return. Without correcting the mistake, I would have
had to pay them $3000. But after figuring out what the mistake
actually meant, a refund with interest from them, I had a tax
preparer file it and received nearly $700. And it was all kosher.

[RC]

12. Good advice.

Then use them next year for a clearer view of how they fill out the return, to use in subsequent years.

[SDjack]

13. Ten years ago, I made a small error that caused me to underpay my tax by about $100.

The IRS chewed my ass. Two years ago, I made another error and underpaid about $700. They fell over themselves being nice guys. Their letter contained no accusations or threats. I had two options: a) pay by deadline in the letter, or b) agree to a payment plan. I almost fell out of my chair. After verifying my error, I promptly sent them the money and a note telling them that I like the new kinder, gentler IRS. But, I know that if a second letter were necessary, no more nice IRS.

[econoclast]

14. Whatever else you do - Respond to their letter

IN WRITING !

Even if your response is just "I'm in receipt of your correspondence and am reviewing my records". Enclose a copy of their letter to you. Send it return receipt.

Nothing irritates them more than thinking that you are ignoring them. That'll only aggravate th situation. And you can't really count on your phone call being logged correctly .... So the bureaucracy might not realize you are in fact trying to get things squared away.

You definitely don't want the "taxpayer is unresponsive " box checked in your file.

Good luck!