Statute of Limitations

[RenoNv]

What is the name of your state? Nv

Earlier this month I received an URGENT registered letter from IRS regarding timely filed but unpaid 2006 tax of $1,000. I phoned the ACS agent. I was informed I actually owed $45,000 for previous years some filed some not. SFR's were filed for years 1994, 1995 and 1996.

I asked for an installment agreement and just recently submitted the package containing income and expense statement, 3 months pay stubs, etc., and the actual 1994, 1995 and 1996 1040's asking for audit reconsideration to change the assessments on the SFR's. I don't have any assets only future income.

I don't have any unreported income sources only w-2's for all filed and previously unfiled years.
I've not had any bankruptcies or entered into any other agreements or granted any extensions to Statute of Limitations.
IRS did impose a wage levy in 2003. I didn't respond because I knew I was moving soon and would be quitting the job.

Does the wage levy toll the statute?

I want to find out if IRS can still collect on 1994, 1995 and 1996. How do I do this?

I greatly appreciate any help and guidance you can offer.
Thank youWhat is the name of your state?

[LdiJ]

Originally Posted by RenoNv

What is the name of your state? Nv

Earlier this month I received an URGENT registered letter from IRS regarding timely filed but unpaid 2006 tax of $1,000. I phoned the ACS agent. I was informed I actually owed $45,000 for previous years some filed some not. SFR's were filed for years 1994, 1995 and 1996.

I asked for an installment agreement and just recently submitted the package containing income and expense statement, 3 months pay stubs, etc., and the actual 1994, 1995 and 1996 1040's asking for audit reconsideration to change the assessments on the SFR's. I don't have any assets only future income.

I don't have any unreported income sources only w-2's for all filed and previously unfiled years.
I've not had any bankruptcies or entered into any other agreements or granted any extensions to Statute of Limitations.
IRS did impose a wage levy in 2003. I didn't respond because I knew I was moving soon and would be quitting the job.

Does the wage levy toll the statute?

I want to find out if IRS can still collect on 1994, 1995 and 1996. How do I do this?

I greatly appreciate any help and guidance you can offer.
Thank youWhat is the name of your state?

You are someone who actually cannot afford not to have an attorney to work with you with the IRS. You have dug yourself a very deep hole, and its likely to costs you many thousands more than it should for you to handle this yourself.

Yes, they can still collect on 94, 95 and 96, because you just now filed the 1040s. Had you filed them when they were due, the sol would have passed by now.

How is it that you have W2 income only and you managed to end up owing so much?

[RenoNv]

Thank you for such a quick response!

I was under withheld for those years. The actual tax was around $2300 for each year.

IRS says I owe $37,000 for 1994, 1995 and 1996. IRS filed SFR's with tax roughly about $5000 per year.

The rest is for more current tax years that I filed some late some on time but didn't pay.

[irsos]

Originally Posted by RenoNv

What is the name of your state? Nv

Earlier this month I received an URGENT registered letter from IRS regarding timely filed but unpaid 2006 tax of $1,000. I phoned the ACS agent. I was informed I actually owed $45,000 for previous years some filed some not. SFR's were filed for years 1994, 1995 and 1996.

I asked for an installment agreement and just recently submitted the package containing income and expense statement, 3 months pay stubs, etc., and the actual 1994, 1995 and 1996 1040's asking for audit reconsideration to change the assessments on the SFR's. I don't have any assets only future income.

I don't have any unreported income sources only w-2's for all filed and previously unfiled years.
I've not had any bankruptcies or entered into any other agreements or granted any extensions to Statute of Limitations.
IRS did impose a wage levy in 2003. I didn't respond because I knew I was moving soon and would be quitting the job.

Does the wage levy toll the statute?

I want to find out if IRS can still collect on 1994, 1995 and 1996. How do I do this?

I greatly appreciate any help and guidance you can offer.
Thank youWhat is the name of your state?

A wage levy has no effect on the SOL.

It MAY have been a mistake to request audit reconsideration depending on the results of those returns and the time remaining on the SOL. Based on the information you have provided, the SOL for 1994 - 1996 should expire at the latest, 10/15/2008 thru 10/15/11, perhaps sooner. The IRS can attempt collection until that time.

They will take those old balances into consideration in your proposed installment agreement. All payments will be applied to the oldest year first. If your SFR protest returns lower those balances, it will take 8 to 14 weeks for those adjustments to be made. The IRS can be held at bay during that time. There are some strategies an experienced professional could help you with in this situation.

[LdiJ]

Originally Posted by RenoNv

Thank you for such a quick response!

I was under withheld for those years. The actual tax was around $2300 for each year.

IRS says I owe $37,000 for 1994, 1995 and 1996. IRS filed SFR's with tax roughly about $5000 per year.

The rest is for more current tax years that I filed some late some on time but didn't pay.

and obviously you are still underwithholding if you owe 1000.00 for 2006. The very first step that you should be taking is to correct your withholding so that you do NOT owe tax for future years. If you continue on that path you will simply make things worse for yourself.

[irsos]

Originally Posted by RenoNv

Thank you for such a quick response!

I was under withheld for those years. The actual tax was around $2300 for each year.

IRS says I owe $37,000 for 1994, 1995 and 1996. IRS filed SFR's with tax roughly about $5000 per year.

The rest is for more current tax years that I filed some late some on time but didn't pay.

If the protest returns provide the same result as the SFR's, it was definately a mistake to submit them.

[RenoNv]

I want to thank all for the comments on my situation. Very good information here.

I had hoped to reduce some liability by filing the actual 1040's. I won't know for several weeks yet.

I have increased with holding to cover any future underpayments.

Does anyone have even a ballpark figure for what a tax attorney would cost me?

[irsos]

Originally Posted by RenoNv

I want to thank all for the comments on my situation. Very good information here.

I had hoped to reduce some liability by filing the actual 1040's. I won't know for several weeks yet.

I have increased with holding to cover any future underpayments.

Does anyone have even a ballpark figure for what a tax attorney would cost me?

A tax attorney will vary with location. Probably between $125 to $350 per hour. You do not really need an attorney though. Your case is pretty routine for tax professionals that deal with IRS collections on a day-to-day basis. Just make sure you are hiring a seasoned professional.

[LdiJ]

Originally Posted by irsos

A tax attorney will vary with location. Probably between $125 to $350 per hour. You do not really need an attorney though. Your case is pretty routine for tax professionals that deal with IRS collections on a day-to-day basis. Just make sure you are hiring a seasoned professional.

I have to seriously disagree with that advice. I do not believe that this case is routine at all. There are liabilities that go back 10-12 years, with the associated interest and penalties.

I am one of the first people to advise someone to simply use a tax professional rather than paying for an expensive attorney or CPA. However, in this instance I believe that an attorney is absolutely needed.