Just got a notice today, in the mail that my wife and i owe $477 in back taxes from unreported income in 2007.
Their explanation page shows some income from some place ive never heard of that apparently paid us 2600 dollars.
It says you can dispute it, but need to provide proof. How in the do you provide proof of something that you are saying, didnt happen?
What options do i have other than just paying it? Is this one of those things that if they say you did it, you pretty much did it, no questions asked?
wierd...
Do you have a common name?
Did your employer give you a bonus for 2600?
I would call the place that the income is being reported from. Ask them if they have a record of paying you and for what?
Ultimately you can probably settle with the IRS for around 250 if you have to.
It is a place called FASCORE and it says purpose: Retirement Income...No my name isnt common at all, so im inclined to think it is probably legit.
i wonder if it is related to my wife just cashing her small 401k out rather than doing all the paperwork to roll it over. Ill have to ask her when she gets home, but i didnt think it was for that much money, less than 1k, but maybe she snuck some
It is a place called FASCORE and it says purpose: Retirement Income
i wonder if it is related to my wife just cashing her small 401k out rather than doing all the paperwork to roll it over. Ill have to ask her when she gets home, but i didnt think it was for that much money, less than 1k, but maybe she snuck some
That's exactly what it would have been ... there is a 30% penalty for withdrawing a 401k early, they should have withheld 20% when they sent her the check, and you would have owed another 10% when you filed your 2007 taxes. If they didn't withhold anything, then you'd owe the whole 30%. If it's $477 ... possibly the 10% plus penalties & interest.
edit: missed the less than $1,000 part ... I think y'all should talk.
Bingo.That's exactly what it would have been ... there is a 30% penalty for withdrawing a 401k early, they should have withheld 20% when they sent her the check, and you would have owed another 10% when you filed your 2007 taxes. If they didn't withhold anything, then you'd owe the whole 30%.
edit: missed the less than $1,000 part ... I think y'all should talk.
I'd still ask them if they can take 250 upfront as payment in full.
just put 300 in savings cause i was ahead...i guess its time to pull it back out! man i love saving money.
Someone obviously filed a W-2 or 1099 saying they paid you or your wife money. I know that you say you have never heard of the company but it is not uncommon for businesses to use a DBA (doing business as) so you might call the company and make sure they don't operate under a different name. If you are sure you didn't receive the money then dispute it. The IRS may just be fishing.
It looks like we have a winner. Early 401K withdrawals are taxed at your normal rate plus a 10% additional penalty.It is a place called FASCORE and it says purpose: Retirement Income...No my name isnt common at all, so im inclined to think it is probably legit.
i wonder if it is related to my wife just cashing her small 401k out rather than doing all the paperwork to roll it over. Ill have to ask her when she gets home, but i didnt think it was for that much money, less than 1k, but maybe she snuck some
Eh...it is probably legit, i know thinking back then about the 401k withdrawl that we would owe for it. I saw they withheld when we got the check, so i thought cool, no biggee...but if you owe again afterward then thats probably it...like i said, i thought it was only about 1k or less, but i could be wrong... i got 2 checks from a previous job about 6 months ago for about 470 each for milage reimbursement from 2 years ago...shows how much i kept on top of money owed to me...im terrible with money, i leave it up to the wife to take care of it.
So if i call them, are they likely to reduce the ammount owed if i send them a check today?
Its possible. Tell them your broke. Let them know that you could send them 250 today if it will settle the account in full. If they refuse tell them you'll get back to them. Then try again tomorrow and then the next day. Eventually they'll crack. Do this for at least 10-15 days before giving up.
It took me 3 times but they settled a 1200 balance for 725 a year ago.
You think your wife's boobs just grew? She bought those bad boys!
Be sure not to send them a check until they send you a letter saying that the reduced amount will be considered payment in full. Had a friend get burned by having a deal worked out and then a couple of years later they went after him again claiming they had no record of an agreement.
I just got one of those 2 weeks ago for $380. I love how they charge you interest for the 2 years, yet we give them an interest free loan every year we get a tax refund. Assholes
Excellent point. Definitely get the letter or some kind of confirmation in writing.
I hope they did not charge you late fees for owing sinec 2007 since they only just now notified you.
yeah they charge interest for the 2 years you din't pay
Ah too bad.
I guess it is unavoidable since they want to rightly penalize people who intentionally did not pay.
But in cases when it was accidental, I wish they could wave the fee. Or find a way to catch the mistakes quicker.
They should charge you per month you don't pay AFTER having been notified.
yeah and its funny how we don't get paid interest for the money we loan them throughout the year only to get it back when we file in April
Welcome to what happens when a illegal alien uses your SS number.
Better ask for every activity you can.
Well, there are also penalties involved if 401k money is removed before retirement age.It is a place called FASCORE and it says purpose: Retirement Income...No my name isnt common at all, so im inclined to think it is probably legit.
i wonder if it is related to my wife just cashing her small 401k out rather than doing all the paperwork to roll it over. Ill have to ask her when she gets home, but i didnt think it was for that much money, less than 1k, but maybe she snuck some
It's your fault if you have too much withheld.
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