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Posted by My interest on September 3, 2007, 10:14 am
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What can I if IRS made a mistake but insisted I was wrong?
It's a long story, but in brief:
1. I bought a house last July. My estate lawyer messed up the
so-called FIRPTA tax, but IRS held me responsible.
2. The estate lawyer thus hired a tax lawyer to deal with IRS
and finally agreed at a $2000 settlement.
3. The estate lawyer cut me a check (payable to me) and then I
sent a responding check (payable to IRS) to IRS for that
amount
4. My check was cashed on April 25. I thought the issue was
solved.
5. But surprisingly I received an IRS notice in June
threatening possible debt collecting procedure because I
had not made the payment.
6. I contacted both lawyers, the tax lawyer sent IRS a letter
together with my bank record showing the check images and
demanded the IRS to correct its mistake.
7. However I received a letter from IRS again today with the
same contents as step 5 above, but looks more serious
During the process, I have also called IRS and have spoken
to more than a dozen of agents. However all of them either
claimed they couldn't find my under-payment record (I guess
it's because they was only able to find 1040 related
information, not FIRPTA) or couldn't find my payment record
(basically, there is virtually no way for them to trace a
check payment. So if the check was posted to a wrong
account when it was cashed, they couldn't trace it any
more!!!)
So my questions are:
1. What can I do now in addition to contacting the lawyers
again?
2. Clearly it's IRS' mistake, but it's more powerful than I
am. If the IRS indeed kicked off debt collection
procedure, what can I do?
3. I am afraid of, at this moment, both of the lawyers may
hand off and leave me in trouble. (The estate lawyer may
say now it's the issue between you and IRS, not me. The
tax lawyer may say sorry I cannot help further.) In this
case, what can I do?
Many thanks in advance for any help/suggestion.
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Stuart Bronstein on September 3, 2007, 10:14 pm
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> What can I if IRS made a mistake but insisted I was wrong?
>
> So my questions are:
>
> 1. What can I do now in addition to contacting the lawyers
> again?
Have your lawyer file suit against the IRS district
director, seeking declaratory relief. When you do that the
IRS will get their lawyers involved, and they normally have
more sense than a lot of the agents.
> 3. I am afraid of, at this moment, both of the lawyers may
> hand off and leave me in trouble. (The estate lawyer may
> say now it's the issue between you and IRS, not me. The
> tax lawyer may say sorry I cannot help further.) In this
> case, what can I do?
Find a better lawyer.
Stu
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Barry Margolin on September 6, 2007, 4:10 am
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> Have your lawyer file suit against the IRS district
> director, seeking declaratory relief. When you do that the
> IRS will get their lawyers involved, and they normally have
> more sense than a lot of the agents.
Assuming this is successful, will he be able to get
reimbursed for his lawyer fees from the IRS? If not, what
happens if he spends more in legal fees than the IRS is
claiming he owes? He wins but he still loses.
And if he loses, he's even worse off, having to pay the IRS
*and* the lawyer.
--
Barry Margolin, barmar@alum.mit.edu
Arlington, MA
*** PLEASE don't copy me on replies, I'll read them in the group ***
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Stuart Bronstein on September 6, 2007, 9:34 pm
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>> Have your lawyer file suit against the IRS district
>> director, seeking declaratory relief. When you do that the
>> IRS will get their lawyers involved, and they normally have
>> more sense than a lot of the agents.
> Assuming this is successful, will he be able to get
> reimbursed for his lawyer fees from the IRS?
If the court finds the IRS position was unreasonable, yes.
Otherwise, no.
> And if he loses, he's even worse off, having to pay the IRS
> *and* the lawyer.
There are no guarantees in life, and life isn't,
unfortunately, fair. Taking all that into consideration he's
got to do what he thinks will work best for him - there is
no perfect solution.
Stu
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by steve-o on September 5, 2007, 10:58 am
Please log in for more thread options print out what you just posted. Fax the IRS branch that sent
you the correspamdence, fax this post and the canceled
check. Then call to see if they recieved it. Sounds like a
computer error. You need a real human being to stop it from
being escalated.
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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