With so many celebrities failing to pay THOSE Boys (the I, the R'rah and the S) what they want and demand, there are also times when the average Jack or Jill has to deal with them too. Here's what you should know before trying to settle with them.
"Asking for an abatement forces the IRS to have a human examine the issue. Otherwise, the tax is automatically assessed and a taxpayer is left with no choice but to wrestle with the IRS' collectors or go to court. "You can really harm taxpayers if you don't apply it [the math error procedure] right," Olson observes.
If a taxpayer made a simple math error, where's the harm? With most tax returns now done on computers, arithmetic errors are rare. But Congress has granted IRS authority to issue summary math adjustments for 16 types of errors, including the catchall one of "incorrect use or selection of information" on a tax schedule or form. "That's a Pandora's box," complains Bryan Gates, an enrolled agent in Belleair, Fla., who had a client denied all his hurricane losses with a math notice. The IRS is using the math error procedure to deny the new $8,000 first-time homebuyer credit and the $800-per-couple Making Work Pay credit, as well as the earned income tax credit." Continue...
If a taxpayer made a simple math error, where's the harm? With most tax returns now done on computers, arithmetic errors are rare. But Congress has granted IRS authority to issue summary math adjustments for 16 types of errors, including the catchall one of "incorrect use or selection of information" on a tax schedule or form. "That's a Pandora's box," complains Bryan Gates, an enrolled agent in Belleair, Fla., who had a client denied all his hurricane losses with a math notice. The IRS is using the math error procedure to deny the new $8,000 first-time homebuyer credit and the $800-per-couple Making Work Pay credit, as well as the earned income tax credit." Continue...
I know this is a long read, but do yourself the favor and READ IT! Those Boys are NOT the average bill collector, they WILL get theirs before you get yours (i.e., liens or garnishments). Believe that!
(Source: Forbes)
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