A client came to me with a big IRS problem. The Client had received letters showing an estimated $64,324 in Federal and State taxes were owed for the years 2013, 2014, 2015, 2016, 2017, 2018 & 2019. In visiting with the client it was discovered returns were not filed because of the spouce's death.
After obtaining Power of Attorney Forms for the IRS and the State, I pulled transcripts and discovered that Substitute for Returns was filed based on the income forms that the IRS and State government had received for those years. No additional deductions or credits were taken on the SFR creating the high balance owed.
The IRS only needed the last 6 years of returns filed. As a result, returns only for the years 2016 - 2019 were filed to the IRS. The state required that all the years (2013-2019) be filed.
After submitting all the required tax returns, the client's ending balances owed were $2,225 Federal and $695 State. A Savings of $61,404.00!
If you or someone you know is dealing with IRS problems, contact me at 702-469-9426 or candy@numbercruncherllc.tax.
Comments(8)