Will the IRS bill me?

Question

I received a 1099-C after my taxes were already done. I did file a 1040x and gave a letter explaining what had happened. I received a letter from the IRS stating that they will increase my tax. Will the eventually bill me or do I need to find out how much I owe on my own. I tried calling but I can't get ahold of a live person

Answer 1

Did you include a payment for any additional taxes due on the amended return?

The IRS will bill you for any additional taxes due in addition to any penalties and interest on that extra portion of tax.

If you sent payment with the amended return, the IRS will bill you any penalties and interest based on the corrected amount calculated.

Answer 2

A 1099-C may not be taxable income. Did you consult a tax professional?

Answer 3

The IRS should send a statement of your new charges. It may take a while, for this is the government we're talking about.  

You should be able to talk to someone though. If you haven't done so already, call the Tax Help Line at 1-800-829-1040. You can also find a local IRS office to go to in person here: http://www.irs.gov/localcontacts/ There you can find locations, office hours, and phone numbers.

If you STILL can't get someone to talk to you, contact the Taxpayer Advocate Service at 1-877-777-4778. This is a program the government set up that is actually within the IRS, but independent of it. They help people having trouble solving tax issues through normal channels. You can also visit their website here: http://www.irs.gov/advocate/  

Answer 4

You will owe the additional amount shown on your 1040X plus interest at 5% (at current rates.)  IRS will send you a bill about 8 weeks after filing.  You can send the money before getting the bill and you will get a balance due notice for any difference.  Getting hold of a live person right now would not be helpful.