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Vecha
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A few months ago the wife and I, for the first time, had to actually pay someone to help us with our taxes. Found out that we supposedly owed a large chunk of money. The wife got some inheritance, but never got a certain form with it in order to report it...or something.

Anywho, we found out that it was three years late(not according to the IRS, but to the person we hired.) We sent off the updated tax year...along with the check.

Recently, we received a letter, and a check, in the mail. Supposedly, according to this agent, the IRS can't come take money from backtaxes after three years. Even though the person we paid said otherwise, and many articles I've read online that agree with our agent. 

Part of me is glad...but another has to ask...what if someone else looked over the form/check we sent in?


Shit like this is why people get frustrated with the IRS....


Anyone have, and want to share, their IRS horror/non-horror stories?

 

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So they just sent is back but you didn't get in trouble for not paying it in the first place? Is that because you tried to pay it instead of them coming after you for it?

 

And sorry for the super dumb question but does everyone in USA file tax returns? Generally, only self-employed people do it here in the UK.

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As far as I know TFG, everyone in the states has to file tax returns. They don't have the same system as we do here in the UK. I hated being entirely self-employed. Currently I work in a tax-free nation as well as the UK and it's interesting to say the least.

Out here though you do get tax refunds if you're self-employed since they often put you on the wrong categories and most of us get stuck at BR while they sort things out. BR is shite anyways.

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  On 6/22/2013 at 8:58 PM, TheFlyingGerbil said:

So they just sent is back but you didn't get in trouble for not paying it in the first place? Is that because you tried to pay it instead of them coming after you for it?

 

And sorry for the super dumb question but does everyone in USA file tax returns? Generally, only self-employed people do it here in the UK.

 

Yep...I don't know all the ins and outs. We finnally got the certain from the estate executive people. So we took that form and redid the taxes from a few years back.  They said, "The law says we can't take your money after so many years from when it was due"......but then others said, "They can take it whenever"

 

Not sure if they took pity on us for taking the initiative to pay them...or what. 

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  On 6/22/2013 at 9:50 PM, TheMightyEthan said:

Yeah, that's weird, afaik there's no limitation on how long after the fact they can take the money, especially if you voluntarily offer it.

 

Exactly...all the research I've done agrees with that statement.

 

But...I got a letter, and the check, where they say, "We can't take it."

 

So...as long as I have the proof in case they change their mind...

 

 

God, the IRS is such a clusterfuck of an organization. 

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Same here, Thursday, Same here. 

Edit: There is a three year statute of limitations on IRS tax audits. If the IRS hasn't audited your taxes, then you don't have to pay the back taxes. Well, unless the IRS thinks you were concealing tax fraud. If they prove you committed tax fraud, it's jail time for you!

 

Your state may have a longer SoL for state tax audits, though. 

Edit again: Here's some federal tax law for your reading pleasure: http://www.law.cornell.edu/uscode/text/26/6501 Don't say I never done nothing for ya.

Edited by Mr. GOH!
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I pay £3 a week in council tax. JSA is technically taxable, which is weird because you don't get enough in JSA to be taxed on it.

 

Weird you'd have to do your own taxes even if you're not self-employed. I kinda figured it was thrown into films/TV as a dramatic way to reference taxes. I guess with PAYE it's a bit harder to make much of a direct physical reference of it.

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PAYE is both great and horrible. Great that it is effortless, horrible that it is not transparent (and it takes a third of my money and gives it directly to Dean to spend on betting on dogs, smoking roll-ups and raising pigeons*).

 

 

*That last bit was facetious. I'm actually in favour of the benefits system and am confident in my belief that Dean does not abuse it.

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I certainly do not abuse my pigeons!! I take great care of them, and make sure that they're looked after when I go on holiday abroad and always make sure they're not shitting on my Sky dish.

 

I do feel kinda poop in not being able to contribute much and that folks such as Thursday are paying my way. But given my annual tax bill comes to £156($240), and that's for the Ctax, with income tax not worth me being charged for, kinda tells you how slim funds are without work.

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Ethan: I am not a tax law expert, but if a person overpays their taxes, the IRS will generally turn around and refund it. I mean, millions of folks get tax refunds yearly from their withholdings.  That likely costs more and has more issues than if the IRs just returns your check and rejects payment. For example, if the amount is big, the IRS may have to pay significant interest on the refund.

 

The IRS also likely has a duty to tell taxpayers what the IRS believes their tax liability is. If Vecha and Mrs. Vecha just sent in the form and check without some sort of affirmative statement amounting to 'We LOVE paying taxes! Here's some money we don't owe the IRS under law, but take it anyway, it's just burning a hole in our bank account!",  the IRS would have to tell them they have no duty to pay. Why would the IRS accept the check and, in the same breath, say that it has no right to the money?

 

Edit: Also, Vecha: pay someone competent to do your taxes next time. 

Edited by Mr. GOH!
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  On 6/24/2013 at 2:59 PM, Deanb said:

I certainly do not abuse my pigeons!! I take great care of them, and make sure that they're looked after when I go on holiday abroad and always make sure they're not shitting on my Sky dish.

 

I do feel kinda poop in not being able to contribute much and that folks such as Thursday are paying my way. But given my annual tax bill comes to £156($240), and that's for the Ctax, with income tax not worth me being charged for, kinda tells you how slim funds are without work.

 

You'll be a tax payer soon enough. Besides which, don't forget that near enough one fifth of everything you spend is tax so one way or another (or both) they get you.

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I didn't think the IRS pays interest on refunds.  I intentionally have too much taken out of my check because I would rather not get a bill at the end of the year that I was not prepared to pay, so I always get refunds, but I've never been aware of any interest on that.

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  On 6/24/2013 at 3:21 PM, Mr. GOH! said:

Ethan: I am not a tax law expert, but if a person overpays their taxes, the IRS will generally turn around and refund it. I mean, millions of folks get tax refunds yearly from their withholdings.  That likely costs more and has more issues than if the IRs just returns your check and rejects payment. For example, if the amount is big, the IRS may have to pay significant interest on the refund.

 

The IRS also likely has a duty to tell taxpayers what the IRS believes their tax liability is. If Vecha and Mrs. Vecha just sent in the form and check without some sort of affirmative statement amounting to 'We LOVE paying taxes! Here's some money we don't owe the IRS under law, but take it anyway, it's just burning a hole in our bank account!",  the IRS would have to tell them they have no duty to pay. Why would the IRS accept the check and, in the same breath, say that it has no right to the money?

 

Edit: Also, Vecha: pay someone competent to do your taxes next time. 

Thanks for your tips.

 

Me and the missus loved your quote, "We Love Paying Taxes!" Had us lolling for a good few mins. 

Edited by Vecha
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There are a million reasons to not do tax law.

 

First, you have the letter of the law.  Laws are specific in language, yet sometimes even that can be vague.

 

Next, you have the IRS interpretation.  They are not always right and have way too much power for a government entity.

 

Finally, you have the court interpretation of said laws and policies.  The court rulings are really the best way to practice taxes (should you be a CPA with clients who have deep pockets they need to protect).  But, even court rulings get overturned.

 

That's why you pay someone else to do your taxes.

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