Disability penison
Im a retired NYC cop collecting a 3/4's disability pension, my pension is free from state and federal tax's.
Ive just been notified buy the IRS that back in 2005 I failed to report my pension on my return., mind you Ive been collecting this pension since 1999 and it's not like my first time filing my return, I know I entered the figures into my tax program , I dont know if there was a glitch in the program but it did not make it to the IRS. The IRS is now saying that I have to pay taxes on my pension a pension that is a totaly tax free penison. I know the IRS cando pretty much what they want but this is rediculious can you help
2 Answers from Attorneys
Re: Disability penison
I have handled a similar situation for a retired NYPD officer in the past. It may be possible to handle this situation rather quickly especially if you still have time on the 30 day letter. The IRS definitely can't do anything they want. The longer you wait though, the harder your situation is to take care of. The way to resolve the case is to prove to the IRS that the pension is not taxable. Case closed!
Re: Disability penison
The good news is that the IRS can not do what they want. If you do not owe it, then you do not have to pay it. The IRS makes mistakes all the time. When we show them they are wrong, they correct it. The trick is to go through the proper channels or they will ignore you. I can help. Call me at 3056821118 or 18002191118. Steve Klitzner. Miami.