Comments on: Irs Tax Problem – In Collections?

By: wartz

wartz — Mon, 30 Nov 2009 16:38:45 +0000

Get your tax man to re-file an amendment for you!

By: Prem S

Prem S — Mon, 30 Nov 2009 16:20:26 +0000

You are still within the three year window until April 15 since it is three years past the due date of 4/15/06. And the window is only to claim a refund – there is no time limit to correct errors. So get a 1040-X for 2005 and send it in.
Do communicate with the IRS. Call whatever phone number is on the letters you have been getting and tell them you are correcting your 2005 to include the sales and to include your purchase costs which will greatly reduce or even eliminate what they are trying to collect. You can avoid things getting even worse by just talking with them and keeping them informed.

By: the tax lady

the tax lady — Mon, 30 Nov 2009 15:58:14 +0000

You can file an Amended Tax Return, Form 1040-X and add the stock transactions with the profit or loss properly recorded. Your tax bill will be adjusted.

By: Bob F

Bob F — Mon, 30 Nov 2009 15:37:02 +0000

If you OWE, the deadline for the 1040X is either 3 years from when you filed OR two years from when you were still paying the tax. Since you OWE, it’s still open for 2005, even after 4/15/2005.
You blew it for timing. You should have gotten the schedule D done when the IRS first sent you the CP2000. Now you’ll need to set up a payment plan for the 12+ weeks it will take to process the 1040x. (Any money that you don’t owe will be refunded, less the $105 set up fee.)