I recently received a letter from the IRS saying that I owed quite a bit of money.oney.?

Question

I contacted my tax adviser and he said that he just had to explain something further and it should be okey. I shouldn't owe money. He figured that I owed $20.00 and so I sent that in along with the tax advisor's explanation. After several months I received a check for $20.00 from the IRS. What does this mean they aren't excepting my check and that I owe more. I did not receive any letter from them, only the check?

Answer 1

You should have received a follow-up letter confirming that you don't owe the money. I suggest calling the number on the letter and they can give you the current status of the account. If you don't have the letter, call 1-800-829-1040.

Answer 2

You should receive some kind of notice from IRS explaining any adjustment.  What probably happened in your case is that the adjustment was so small that it was closed as a "no change" and your $20 was returned.

Answer 3

got back to your tax advisor

could mean many things

call IRS and get taxpayer advocate and ask them

Answer 4

It would help if you included the letter number to give you an answer.  

was it from unreported income?

was it from not filing a tax return, and IRS was giving you 30 days to file or you could owe $XX.

For more information call the phone number from the first letter you received from the IRS and find out what the letter was about and where the $20.00 came from?

Answer 5

If the problem was that you didn't show stock or mutual fund sales on your return, it's very possible that you didn't really owe anything, or didn't owe much.  You are only taxed on the gain, but the wouldn't have had the info on what you paid for them originally so would have assessed tax on the whole sale price.  This is a very common error people make on their returns, and is easily fixed.

If they sent you a check for $20, it sounds like maybe you didn't even owe anything.  If you owed more than that, they'd have kept the $20 and billed you for the rest.

I'd worry a bit about the tax advisor who, it sounds like, has messed up twice now, on the original return and on the fix.

Answer 6

When the check was deposited, they forgot to flag the account as possibly having a balance due.  Since it didn't appear that you owed, they refunded the money to you.

The problem is, you had, I'm willing to bet, a CP2000 letter.  You agreed to some of the changes (otherwise you didn't owe), but not all of them.  The AUR unit never put in the agreed amount.  They will eventually and you will owe the $20 again.  

Call and ask if the AUR unit is done.