What is the name of your state?What is the name of your state? Oklahoma
In 1991 we had a business that went bankrupted. For the last 14 years the state has sent us every refund. Now they say we owed payroll taxes for the last quarter of 1991. They held 1/2 of our state refund this year. If we owe the tax I want to pay it, which we have paid for the initial tax. The problem is with their interest & penalties it amounts to over twice what the initial tax was. How can they come back 14 years later and say we owe this? Isn't there a time limit on how far back they can go? I always heard you only had to keep records for 7 years. Since they took so long to catch thier mistake do I have to pay the penalties & interest? If so they could come back 30 years later and make you pay $1000.00 for the $100.00 tax bill. Any input would be greatly appreciated.
In 1991 we had a business that went bankrupted. For the last 14 years the state has sent us every refund. Now they say we owed payroll taxes for the last quarter of 1991. They held 1/2 of our state refund this year. If we owe the tax I want to pay it, which we have paid for the initial tax. The problem is with their interest & penalties it amounts to over twice what the initial tax was. How can they come back 14 years later and say we owe this? Isn't there a time limit on how far back they can go? I always heard you only had to keep records for 7 years. Since they took so long to catch thier mistake do I have to pay the penalties & interest? If so they could come back 30 years later and make you pay $1000.00 for the $100.00 tax bill. Any input would be greatly appreciated.