How do you dispute the IRS?
I got a letter today. A “final notice,” even though I have not received any subsequent notifications, from the IRS. The claim is that I failed to pay state taxes, period, for 2014, and that I now owe them $2,500 plus penalty.
My tax forms show I was owed a $340 refund, which I submitted on time last April through my accountant.
I am irritated that I am being threatened with wage garnishment for their error and I must spend many hours disputing their error. They have to have my W2s and other tax documents to know what my income was to know what Inowed, and it clearly shows on those W2s that my employer deducted state income taxes.
How can I dispute that they say I paid zero state taxes when it’s right there on the forms? Has anyone else gone through something similar?
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16 Answers
I’m very confused by your question. You say that you received an IRS notice for non-payment of state taxes. The IRS collects federal taxes, period. The IRS has no authority, whatsoever, with respect to state taxes.
If you could take another look at the notice, verify who sent it, and sort through its issues, I’ll try to help you.
Could be fraud. I would call the number in the telephone book (not what is on the letter) to make sure this is legit. There are a fair amount of IRS scams going on.
@Love_my_doggie I didn’t realize it doesn’t all fall under the blanket of IRS and then divide into federal and state. This is definitely state taxes.
Is there a contact name and number? Call them up! Or, look up the IRS and call them up. Sometimes they will wave penalties one time in your lifetime depending on the situation.
It’s a fraud.
I got two calls today saying that the IRS was filing against me and that I needed to call in.
I, too, have received no other contact.
DO NOT CALL THEM, is my advice. Ignore it. It’s the wrong time of year for the IRS to be hounding anyone.
If there is a real problem, you’re sure to get a more reasoned and reasonable contact from the government.
The IRS will not:
Call you to demand immediate payment. The IRS will not call you if you owe taxes without first sending you a bill in the mail.
Demand that you pay taxes and not allow you to question or appeal the amount you owe.
Require that you pay your taxes a certain way. For instance, require that you pay with a prepaid debit card.
Ask for your credit or debit card numbers over the phone.
Threaten to bring in police or other agencies to arrest you for not paying.
If you don’t owe taxes, or have no reason to think that you do:
Do not give out any information. Hang up immediately.
Every notice from the IRS includes a whole sheet on the dispute and appeals process and also what your rights are.
And, if they found a line item “missing” they will audit you before asking for an amended return. And the determination of extra taxes is based on the amended return.
Oh yeah, don’t give out any information that could lead to identity theft.
I know many people who have been receiving fraudulent communication from people claiming they’re the IRS. Do not give out any information. Call the IRS on your own and see what’s going on.
@AdventureElephants Ok, so you’re certain that this issue involves state income tax. The IRS has absolutely nothing to do with it. If you’d believed that all taxes are paid to the IRS, which then divvies your money between the federal and state governments, is it possible that you didn’t file a state return?
Regardless, you should be able to find a telephone number on that notice and call for help.
@ibstubro Right now, the IRS is going bananas with taxpayer notices. On average, about 2 of my clients get a notice each week.
@Love_my_doggie I file two separate returns, I just thought “IRS” was a term that referred to the government branch that collects taxes (state or federal). I label the envelope “State Income Tax” but thought that was part of the IRS. Just mis-worded.
I called and asked them if they could send me their breakdown of my 2014 taxes so I could find the discrepancy. Apparently that is too much to ask or I didn’t ask for the right thing. They (rudely) told me they could send me the breakdown of what I owe. We’ll see what they send me. They told me it would take 3 weeks to get, and that I could not get an extension on the 30 days to pay before they garnish my wages. So essentially I’ll have 7 days to work with. Awesome.
@AdventureElephants: The department that collects your state taxes is called the “State of ____ Department of Taxation.”
If you paid a tax preparer, @AdventureElephants, they should be helping you out of this mess. There should be copies of your returns, and they should know who to contact.
I’m now receiving 2–3 IRS collection calls a day that I’m certain are fraudulent.
@ibstubro If you’re receiving any calls from “the IRS,” every one of them is fraudulent. The IRS doesn’t call people; it sends written notices.
I know that @Love_my_doggie.
It’s a canned message that plays beginning to end until the line disconnects. All my voicemail records is the phone number…no message. Only because I answered the damned thing the first time do I know what it’s about.
@ibstubro I was once targeted by an “IRS” telephone scam, but a live person called. The individual told me that all my assets were about to be seized, but that I could prevent this by providing my credit card information. Just for fun, I asked for the IRS office location; the guy said “Pakistan.” I told him that he’d reached a CPA with 30 years of tax experience, and he hung up.
Sadly, elderly widows aren’t nearly as resilient as I am.
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