I did not turn in my tax returns for 4 years. I had them all prepared by a CPA, but was too stupid to turn them in. Received a lien against me for a certain amount. Went to IRS office turned in all of my tax returns, after turning them in they came back with a higher amount owed than the original lien. Which almost doubled my amount owed. What can i do? I do have a Form 843 (Claim for refund and request for abatement) But I am unsure what explanation I can put in writing. Thank you
1 Answer from Attorneys
The first thing that needs to be done is to understand why the IRS increased your tax. The IRS creates so called "substitute for returns" based upon information received from third parties, usually w-2's or 1099's. Your returns may have disclosed other income. Once that is understood, then it may be possible to request an abatement of tax, penalty or interest. The grounds for each differ substantially and you should consult with a tax professional before proceeding as there are penalties for submitting false refund claims. If you would like us to assist you, please call for an appointment.