IRS tax corrections and the statute of limitations?

[ISAIAH]

Hey guys, I have been reading this forum for quite some time but do not post much.

I just received a nice letter form the IRS informing me that I under paid on my 2004 taxes and that I owe them quite a bit more, I don’t have a problem with the IRS getting a cut off the top of my income but when they come back almost 2 years later and ask for almost 25% of what I made that year it ticks me off.

I was considering if it was possible to drag it out for another year or 2 (end of 2007) the statute of limitations should kick in and render there attempts to collect invalid.

Should I just return there communications “refused for cause” listing lack of valid contract as the reason?

Any ideas/ suggestions?

[freeindeed]

Originally Posted by ISAIAH

Hey guys, I have been reading this forum for quite some time but do not post much.

I just received a nice letter form the IRS informing me that I under paid on my 2004 taxes and that I owe them quite a bit more, I don’t have a problem with the IRS getting a cut off the top of my income but when they come back almost 2 years later and ask for almost 25% of what I made that year it ticks me off.

I was considering if it was possible to drag it out for another year or 2 (end of 2007) the statute of limitations should kick in and render there attempts to collect invalid.

Should I just return there communications “refused for cause” listing lack of valid contract as the reason?

Any ideas/ suggestions?

Well, if you are going by statute, the statute of limitations is 10 years, if I am not mistaken. The end of 2007 would not end the attempts at collection.

[ISAIAH]

Originally Posted by freeindeed

Well, if you are going by statute, the statute of limitations is 10 years, if I am not mistaken. The end of 2007 would not end the attempts at collection.

thats interesting, I dont know if there are diffrent limits for diffrent things but in the "help guide" they sent me it stated that 3 years was the stat limit and that allot of the time they would want your consent to extend it.

[freeindeed]

Originally Posted by ISAIAH

thats interesting, I dont know if there are diffrent limits for diffrent things but in the "help guide" they sent me it stated that 3 years was the stat limit and that allot of the time they would want your consent to extend it.

Check it out here . I should have been more specific. It is 10 years from the date of assessment by the IRS to collect. The IRS has 3 years to assess and then 10 years from that assessment date to collect.

[ISAIAH]

Originally Posted by freeindeed

Check it out here . I should have been more specific. It is 10 years from the date of assessment by the IRS to collect. The IRS has 3 years to assess and then 10 years from that assessment date to collect.

Hmm.. What I received from them is a proposed assessment. Does that start the 10 year period?

"Three-year statute of limitations from the date you file the original return for the IRS to assess taxes against you - or 2 years from the date you paid your taxes."

That link makes me think they have already ran out of time if its true they only have 2 years from when I "paid my taxes"

Im not sure I even filed that year but on the paper it shows that I had already paid and reported some income/tax.

Its all fishy to me

[Mutt]

The three year SOL applies to assessment. The ten year SOL applies to collection.

If you are certain that you did yor taxes correctly start boning up on tax court procedure.

Mutt

[weishaupt1776]

Originally Posted by ISAIAH

Should I just return there communications “refused for cause” listing lack of valid contract as the reason?

Any ideas/ suggestions?

Don't own anything, have anything in your name, have a bank account, or receive wages from an "employer" who you w-4'd with or 1099'd with