• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Tax Mess 2006

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

JohnErick

Member
What is the name of your state? CA

Hi. First off, I'm amazed I can qualify for a refund under CA and still owe 1000 to the IRS... go figure :) That's probably my problem -

I'm sure I'm really screwed, but lets try this. I need advice asap. I filed for an extention and submitted my extension electronically through complete tax yesterday. I had saved everything and was sure I owed 1068.00... it said refund of $30. I rechecked and found it submitted my return stating I made $0! The deadline is October 15 and I am currently waiting for the IRS e-file rejection to come through so I can provide an amended return. I may miss this deadline... so what will happen? (Theres much more to this)

Also, I am on a payment plan for my 2005 taxes that is half done - will this still be affected by my rejected 2006 return? I can't pay this 1068.00 and would have to make payments on this as well - my understanding is that they will cancel my 2005 payment plan if I can't pay 2006.

Also, I would consider an offer in compromise but this amount to me, would seem low for the IRS to "bargain" on and the fee is also prohibitive at this time, just to file an offer.

Just in case anyone would know: the reason I'm in this mess is because I live with a domestic partner that was diagnosed with renal failure a ways back. As he progressed into end stage renal failure, the dialysis tubes were implanted, he was also a brittle diabetic for 38 years... he ended up needing care to the point where I had to take CFRA (California's answer to FMLA). After using up my vacation time for the last 2 years, I ended up going unpaid for months to care for him, losing about 8000.00 over the year and a half we have had CFRA. As a result, my only option to keep our bills paid was to charge everything up on my credit cards which has now left me in debt on those as well. I ended up claiming way more exemptions just to save back some money to keep us afloat-which I'm sure would be a major sin to the IRS - but I had to.

Do I have any options? To me 1068.00 is a ton of money, and I'm sure it will come with penalties and interest; and I'm not sure I can get another personal loan.

Thanks for reading.
John
:(
 


LdiJ

Senior Member
Ok......this is one of those things that you really should NOT have attempted to do yourself.

Your deadline to file an extension was April 15, 2007. Therefore, when you recently attempted to file an extension it instead filed you with a zero return. The IRS is probably not going to reject the return. It will probably be accepted.

So yes, you are going to have to file an amended return. I sincerely suggest that you do not attempt to do that yourself. I suggest that you use a tax pro. File a request for an installment agreement with the amended return. There is a reasonable chance that the IRS will just combine the two years into one installment agreement, because the amounts in question aren't high. Forget an offer in compromise, that will never happen with amounts that low.

However, you better be darned sure that you have had proper withholding for 2007, so that you won't owe for 2007. The IRS may get very nasty with you if you owe three years in a row and can't pay.
 

JohnErick

Member
Thanks!

One thing is for sure, I had adjusted my withholdings and asked for extra to be withheld so I will not owe for 2007 taxes. The zero withholdings and extra $ isn't helping out the financial situation either, but I've never had tax problems before (and don't intend to again).

I will try to get to a tax person, but do you know what they generally charge? The caring for my partner was my only issue (aside for the extra withholdings) and I only make $32000 a year; no property or anything else so I'm hoping it wouldn't "tax" the expert too much - I'm hoping.

Does any of my lost wages or anything have any bearing on my return?

Anyway, thanks for the advice!! :)
 

LdiJ

Senior Member
One thing is for sure, I had adjusted my withholdings and asked for extra to be withheld so I will not owe for 2007 taxes. The zero withholdings and extra $ isn't helping out the financial situation either, but I've never had tax problems before (and don't intend to again).

I will try to get to a tax person, but do you know what they generally charge? The caring for my partner was my only issue (aside for the extra withholdings) and I only make $32000 a year; no property or anything else so I'm hoping it wouldn't "tax" the expert too much - I'm hoping.

Does any of my lost wages or anything have any bearing on my return?

Anyway, thanks for the advice!! :)
Call around in your area....odds are you can find someone to amend the return for 100.00 or less.

No, none of your lost wages have any bearing on your return. Although, if your partner has lived with you all year long, and has less than 3300.00 in income himself, you can claim him as a dependent.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top