Taxation without Accountability

[cherit]

I run a small business. A couple of months ago, I received a letter from the IRS that we owed them money. We had paid what we thought we owed. They said we owed more, so we replied with a request that they send us how they came up with their figures. Today we received a letter from the IRS that if we don't pay the amount they say immediately, they will sieze our property. When did the government get this far out of control, and when are we going to stand up and make them accountable?

[ugonow]

I suggest biting the bullet and hiring a tax attorney.They cut some pretty good deals with them...and no, this is nothing new.

[jkapp]

Jun 29, 2011 16:19:42 GMT -5 cherit said:

I run a small business. A couple of months ago, I received a letter from the IRS that we owed them money. We had paid what we thought we owed. They said we owed more, so we replied with a request that they send us how they came up with their figures. Today we received a letter from the IRS that if we don't pay the amount they say immediately, they will sieze our property. When did the government get this far out of control, and when are we going to stand up and make them accountable?

It's odd for them to just have an amount due...they usually have some kind of explanation (even if it still makes no sense)

I would go to the IRS website and call a number listed on there to ask for information...it could be a scam.

[ugonow]

Yea, that is a possibilty,jkapp. this sounds odd too "if we don't pay the amount they say immediately, they will sieze our property. " I know of cases of people not paying for quite some time and not getting this warning. They set up payment plans, knock amounts off, etc.They really don't want property.

[cherit]

Thanks for all the replies. We will be trying to find out what is going on, but as of yet don't have any answers. Surprise surprise!!

[EVT1]

If the IRS has assessed a tax, you can either pay it and then head to Federal Court to try and get it back (jury), or you can go straight to tax court and have a judge decide if you owe it.

*** Don't screw around with the IRS-I'd get an atty. Time is critical.

So you got a notice of deficiency and paid it, then got another one?

[Shirina]

Was the second amount the same as the first amount?

I definitely would question why they would need to send a SECOND bill ... wouldn't the total amount that you owe have been contained in the FIRST bill?

I think something is definitely wrong ... and most likely someone made a boneheaded clerical error. It wouldn't be the first time. If the amount is substantial enough, I would definitely seek legal counseling on the matter. Currently, it sounds like a form of extortion whereby you keep paying them money under the threat of punishment.

[cherit]

evt1,
We did get a deficiency notice from them. The problem was that somehow our figures don't match what they say we owed , so we didn't pay enough. When we got the first notice, we asked them to explain how they got their figures, and we got this certified letter today in response. Still with no explanation, just stating that if we dont pay that amount they will sieze our property. We sent a check but will try to investigate it further.

[cme1201]

Jun 29, 2011 17:09:47 GMT -5 Shirina said:

Was the second amount the same as the first amount?

I definitely would question why they would need to send a SECOND bill ... wouldn't the total amount that you owe have been contained in the FIRST bill?

I think something is definitely wrong ... and most likely someone made a boneheaded clerical error. It wouldn't be the first time. If the amount is substantial enough, I would definitely seek legal counseling on the matter. Currently, it sounds like a form of extortion whereby you keep paying them money under the threat of punishment.

Unless the bills are for different tax periods. I have received when I owned my business 2 letters with in a month of each other, one was for a 3 year tax period in the amount of $2850 the next one was for $2845 for a different 3 year tax period.(miss calculation of quarterly payments)

[Shirina]

Unless the bills are for different tax periods. I have received when I owned my business 2 letters with in a month of each other, one was for a 3 year tax period in the amount of $2850 the next one was for $2845 for a different 3 year tax period.(miss calculation of quarterly payments)

Ah yes, cme, very true. I had forgotten that detail.

[cherit]

Shirina,
The amounts were close but not the same due to penalties etc. It was about $1600. I will try to find out more, and will go from there. Thanks!!!

[cme1201]

Jun 29, 2011 17:17:12 GMT -5 cherit said:

Shirina,
The amounts were close but not the same due to penalties etc. It was about $1600. I will try to find out more, and will go from there. Thanks!!!

If all you owe is $1600, bite the bullet, make the full payment, then start with a very good accountant, have them scrub you business records for the last 7 years, if you find a good one, they can get back what you had to pay in, if the IRS made the mistake.

[djAdvocate]

Jun 29, 2011 16:19:42 GMT -5 cherit said:

I run a small business. A couple of months ago, I received a letter from the IRS that we owed them money. We had paid what we thought we owed. They said we owed more, so we replied with a request that they send us how they came up with their figures. Today we received a letter from the IRS that if we don't pay the amount they say immediately, they will sieze our property. When did the government get this far out of control, and when are we going to stand up and make them accountable?

usually they specify the error, ime. if they did not do so in this case, i really don't know where to tell you to start.

[EVT1]

Jun 29, 2011 17:12:56 GMT -5 cherit said:

evt1,
We did get a deficiency notice from them. The problem was that somehow our figures don't match what they say we owed , so we didn't pay enough. When we got the first notice, we asked them to explain how they got their figures, and we got this certified letter today in response. Still with no explanation, just stating that if we dont pay that amount they will sieze our property. We sent a check but will try to investigate it further.

Good thing. Once they assess the tax you owe it- you have to pay or go to tax court and dispute it.