IRS problem

[perfect 39]

We used our considerable tax refund to pay off in full my husband's back taxes he owed with his ex and entered an instalment agreement to pay off the remaining year they owed. We had been faithfully paying every month and got it down to a point where we could repay the whole amount when we get a tax refund at the end of this tax year. The out of the blue we get a letter from the IRS stating that we are in default (which we aren't) and we are having to increase out monthly payment to almost double, no negotiation whatsoever (we actually were ahead of schedule with the amount we had paid to date). Also on our statement now the old year which we had paid in full has reappeared at $10000 and they have applied penalties and interest over $1500 to the year we are currently paying off which has completely negated 6 months worth of instalments.

I am absolutely spitting teeth over it. When we met him and his ex owed $40000 and I paid faithfully every month and got it down to $9000, now they're telling me we owe almost $23000 again.

Obvioulsy they have made a mistake somewhere and I'm going to fight it with every ounce of energy I have but has anyone ever taken on the IRS and actually won a case? Anyone any ideas how to proceed without pi***ng them off and without using a costly tax attorney?

Thanks in advance

[payxibka 10,048]

We used our considerable tax refund to pay off in full my husband's back taxes he owed with his ex and entered an instalment agreement to pay off the remaining year they owed. We had been faithfully paying every month and got it down to a point where we could repay the whole amount when we get a tax refund at the end of this tax year. The out of the blue we get a letter from the IRS stating that we are in default (which we aren't) and we are having to increase out monthly payment to almost double, no negotiation whatsoever (we actually were ahead of schedule with the amount we had paid to date). Also on our statement now the old year which we had paid in full has reappeared at $10000 and they have applied penalties and interest over $1500 to the year we are currently paying off which has completely negated 6 months worth of instalments.

I am absolutely spitting teeth over it. When we met him and his ex owed $40000 and I paid faithfully every month and got it down to $9000, now they're telling me we owe almost $23000 again.

Obvioulsy they have made a mistake somewhere and I'm going to fight it with every ounce of energy I have but has anyone ever taken on the IRS and actually won a case? Anyone any ideas how to proceed without pi***ng them off and without using a costly tax attorney?

Thanks in advance

Your situation while not common occurs frequently. Just start gathering your evidence to prove your case. Your original paperwork, any amendments to the agreements, payment history, etc... More than likely they posted the payments to a wrong account or to a wrong year. They will need the cancelled checks to see the endorsements so they can trace the postings. Get on the phone immediately with them and talk to a real live human being. It is not as insurmountable as it appears. If you delay or ignore them then it will get difficult.

[pedroh 21]

i've OMGWTFPWNED the IRS

[sparkofcreation 0]

Believe it or not, the IRS is not maliciously trying to ruin your life (I know it can seem that way!). They just want their money; and they want to make it as simple and straightforward as possible for you to get it to them. Gather your evidence, explain what happened (call them and also follow up with a letter). As long as you've been holding up your end of the deal, it sounds like you'll be fine.

Edited November 28, 2006 by sparkofcreation

[mRx 16]

im really sorry to hear about that. no experience with the IRS is a pleasant one. Even something so simple as changing an address.

[meauxna 15]

http://forum.freeadvice.com/forumdisplay.p...une=-1&f=12

[Mr. Big Dog 10,747]

I'd gather the records to prove that I am in compliance with the payment agreement. I'd head out to the local IRS office with that, have them copy what they need and get some sort of response as to what action they intend to take to honor their part of the agreement. Then I'd make copies of my stuff and head over to my US Senator's office asking for their help with the IRS. If you are confident that this is a mistake, then get some help from your Washingtonians to get it straightened out. They don't just help with the USCIS.

[Garfield fan 0]

Did the IRS send you monthly statement when you were making payments ? Your payments should be reflected there if they send you one. Hubby was also in similar situation a couple of years ago and IRS sent us monthly statement so we could check and made sure that everything was put in correctly. Luckily we didn't have any problems.

I would suggest you to gather evidence (copy of checks, etc) and call them right away.