What do you do when the Fed IRS sends you an audit saying you owe $840 in 03 when you paid it in 03 of $447??

Question

What do you do when the Fed IRS sends you an audit saying you owe $840 in 03 when you paid it in 03 of $447?? I get this weird audit when I have my taxes for 2003 in front of me and they are perfectly right and I paid them for $447 dollars but now they say I owe them $840 instead of $447; I have no idea where they are coming from; I have tried to call them but all I do is on the phone for 2 hours; what am I possibly supposed to do; they say I owe $400 more; my taxes are right; I get this out of nowhere; do I have any recourse; what can I do any help would be appreciated; thanks

Answer 1

You need to speak with them to ask for a detailed explanation.

Answer 2

Just because you *think* you did your taxes right, doesn't make it so.

Either, you owed the money and didn't pay them in 2004 (after 4 years, the amount can double)...

Or, you forgot to include some income and with the additional income, you owe this much...  (Did you sell stock that year?  Sometimes it's an issue with the IRS thinking it's all gain when it isn't.)

Or, you got audited (which at the 3 year mark is more likely), some deduction or credit was disallowed, this increased your income and now you owe...

Your details aren't sufficient to narrow this down.  If there wasn't that darn rebate, you might have an easier time getting through.

You could type in the code from the letter (was this a CP 501 or CP 2000or what?) and the text from the "Why are we sending you this letter" and the boards can try to help you....

If you do decide to give more data, at least tell us if you filed as single/yourself or if you filed with dependents and EIC....

Answer 3

Try this link, there should be an office locally, or with in 50 miles if you live away from a major city!

http://www.irs.gov/app/officeLocator/ind...

Answer 4

Do you have proof that you paid the $447 in 03?  If so, show it to them.  If the additional tax is due to something additional though, you might owe it.

Answer 5

Did a professional prepare your return?

Even if everything was accounted for, it may have been put in a incorrect location.

For example:  Many people automatically put income from a 1099Misc on Line 21 instead of on a Schedule C where it belongs.  Moving the Income to Schedule C will generate a higher (correct) tax liability.

Take the letter to a professional and see if they can sort it out.

Answer 6

maybe you DIDN'T do your tax return correctly

Answer 7

If we had the Letter number it would be easier to give you an answer.  Apparently you did owe $447 and paid but somewhere IRS probably received another w2 you didn't report on your tax return and send you notice which you ignored.

Now pay what you owe or write a detailed letter to IRS

or visit your local IRS office for assistance.