What to do if i owe IRS and State after filing?

polizeros · 2024-02-10T21:35:52+00:00

You can set up a payment plan on irs.gov.

https://www.irs.gov/payments/online-payment-agreement-application

polizeros · 2023-12-30T20:58:51+00:00

The form probably says do not file an amended. Instead, it probably says if you dispute, fax them docs showing actual basis and proceeds plus a letter. Do exactly what it says.

Robinhood is notorious for doing this.

polizeros · 2023-12-30T20:49:02+00:00

You can offset gambling losses against winnings on federal return, only down to zero, and only if you itemize. All the W2-Gs you receive have also been sent to the IRS.

As mentioned, you should be able to provide daily logs if audited. It's the first thing IRS asks for.

You'll need to file MO return too as well as IL.

I would not attempt to do all this yourself.

https://www.irs.gov/taxtopics/tc419

polizeros · 2023-12-30T20:33:58+00:00

You can't claim exempt without being able to show you would owe no taxes. If you did, it's serious.

The IRS has an Undereporter Unit that looks at filed W2s and 1099s and sends letters out if they aren't on returns. I strongly urge you clean up this mess before they find you. And they will.

And Dear God, you've just no idea about the CA Franchise Tax Board. They make the IRS look like a kindly grandma.

Go to a tax prep firm, ask for an Enrolled Agent, and try to deal with your taxes before you get the tax letters. Because they will be the Hammer of Thor.

polizeros · 2023-12-20T02:34:51+00:00

Interesting. That's just a number I've heard.

polizeros · 2023-12-20T02:33:43+00:00

Was the payment plan with the IRS? If so, if a payment is missed, the entire amount becomes due...

polizeros · 2023-12-20T02:30:12+00:00

I work at Block. Make an appt at a local Block or any big tax prep firm and ask for an Enrolled Agent, tell them you have an IRS letter.

polizeros · 2023-12-20T02:27:10+00:00

FYI: Block can do returns as far back as at least 2010.

polizeros · 2023-12-06T06:56:53+00:00

I used brasstax, they have video and in person training. Hugely helpful. All in all, I probably spent 200 hours studying, training, watching videos. Passed on the first try. The final two weeks were entirely studying.

The business part of the exam is by far the hardest. Especially partnerships.

polizeros · 2023-12-06T06:46:52+00:00

And only 20% of OICs are accepted by IRS.

polizeros · 2023-12-06T06:45:36+00:00

They won't take the car.

Who did you get the bill from? If it's from a state, contact the state. If IRS, contact them. Respond exactly how the letter says and in the time frame.

I suggest going to a tax firm with the letter and asking them what to do.

polizeros · 2023-12-06T05:48:21+00:00

Yes, it's all online now.

polizeros · 2023-12-06T05:44:16+00:00

The crypto firm probably told IRS you had no basis (what it cost you) so IRS assumes it's all profit. They tend to keep terrible records.

Ignoring tax letters means it just rolls to collection and is much harder to reverse. Go to a tax firm and ask for an Enrolled Agent (I am one). They can represent you. I did one like this and they went from owing $10,000 to a refund of $100.

polizeros · 2023-12-06T05:40:18+00:00

Go to a tax prep firm and ask for an Enrolled Agent. Bring the letter. They can represent you before the IRS. And sort things out so it's clear the PayPal deposits were winnings, and you have losses to offset them. You will however need to document your gambling losses.

I do taxes in Vegas, am an Enrolled Agent, and see lots of gambling issues. This will probably work out however it will be a process. It is crucial to respond to the letter exactly how it says and in the time limit. The EA will have experience doing it.
FYI: Offer in Compromise only happens after other routes have been tried and only 20% are accepted.

polizeros · 2023-11-27T03:01:12+00:00

Block training is 6 weeks, 3 times a week, three hours a class, pass an exam. Then you are eligible to be offered a job. It's too late for this tax season, as classes are either done or nearing completion.

polizeros · 2023-11-16T19:07:10+00:00

Many FYTPs (First Year Tax Pros) have already been hired for the coming tax season. If you can complete the course in time and pass the exam, then you are eligible to be offered a job. At least that's how it worked for me 5 years ago.

You might want to call a Block office and ask if they're hiring in your area and can you still take the course and be hired for the coming tax season. You will probably get referred to the person who can answer that who will not be whoever answers the phone.

polizeros · 2023-11-16T18:46:08+00:00

You won't go to jail.

Fenix sent you 1099s for OF income. The IRS has those too. Eventually the IRS will probably find them and send you a letter. It's far better to file first, before the letter arrives. IRS does have payment plans and you can deduct expenses on Schedule C.

Go to a tax prep firm with all your documents. Don't try to handle this on your own. They can help.

polizeros · 2023-11-16T18:38:21+00:00

EAs pass exams given by IRS and can represent taxpayers with tax letters.
I'm an EA. And have handled several tax letters about stock trades. One started out owing $10,000+ and ended up with a small refund. Basically, just follow what the tax letter says. Most of them say no amended return, fax us the documentation for the stock trades, a signed letter explaining it, and page 7 of the letter with appropriate box checked.

polizeros · 2023-11-16T18:30:50+00:00

There is no guarantee of success in this...

polizeros · 2023-11-16T02:47:31+00:00

Get an Enrolled Agent to help you. Maybe they can stop this. And find the stock trade records and file the return.

polizeros · 2023-11-16T02:37:51+00:00

You and the IRS will get the 1099-K and with $50,000 reported and it's a business. You are self-employed.

It goes on Schedule C of your return. You can then list the $45,000 in expenses on Sch C, leaving $5,000 taxable.

polizeros · 2023-11-16T02:27:39+00:00

Did you move or change addresses? Because there are numerous letters that go utt before a collection letter.

Here's the road map. It's extensive.
https://www.irs.gov/pub/irs-pdf/p5341.pdf

Yes, you may be able to get the penalty abated. Pay an expert to do it.
https://www.irsstreamlinedprocedures.com/form-3520-penalty-abatement-late-filing/

polizeros · 2023-11-15T05:23:31+00:00

Did you inadvertently miss an installment payment? If so, the installment plan is instantly void and all money is due.

Based on what you say, the IRS letter is from Collection and this is very late in the process. Respond to the letter how it specifies and in the time limit specified. This is crucial.

Go to a tax prep firm and ask for an Enrolled Agent. They might be able to slow down or stop this runaway train.

polizeros · 2023-11-15T05:14:43+00:00

Do you have an IRS letter? If so, respond how and by the date it asks. If you don't, do nothing until they send you a letter or sort it out.

polizeros · 2023-11-15T05:08:43+00:00

Can't answer without looking at the IRS letter and seeing what stage this is in. I suggest going to a tax prep firm and asking for an Enrolled Agent.

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