What is the name of your state? Oregon
Ok, I have a friend who I am helping out. There are two brothers, Brother A and Brother B. Brother A became ill about a year and half ago and Brother B obtained power of attorney for Brother A.
Brother A has had a past history of not filing tax returns. In fact, to the best of my knowledge, he has not filed a tax return since at least 1987. If I could go back further, it might reveal that he did not file returns prior to 1987 but the IRS either does not know or will not give the information.
I have been helping Brother B deal with Brother A's affairs. Well, actually I have been dealing with most of Brother A's affairs with Brother B's approval.
Ok, here is the situation. Back in 1990, one of the years that Brother A did not file a return, Brother A sold a house. Sicne he did not file a return, the entire sale of the house, $175,000 was tagged to Brother A as income and he was taxed accordingly on $175,000. That tax grew over the years of Brother A not paying it to a whopping $50,000. Brother A bought another house in 1992 which the IRS slapped the $50,000 lien on and when that house sold in late 2004, the IRS collected their $50,000 payday.
As it turns out, Brother A was 59 years old in 1990 and could have claimed the exemption on the gain of the sale of the house. In essence he would have owed no tax had he filed his return.
I believe that there is a ligitimate claim to the $50,000 that was collected in 2004. A 1990 return was completed.
Here is where the problem is coming in. In December 2004, the 1990 return was completed and sent to the IRS. About a month went by and I made a call to the IRS. They informed me that they had no record of the return but to wait a couple more weeks to check back. I waited a month which put me into February 2005. I again called the IRS and they informed me that they had no record of the return. The IRS agent was concerned because there was no record of the return and suggested that I fax it to him which I did.
I waited another month and called back to make sure that they had it. I was told that the return had been received but would take a while to process because it was so old and complicated. I was told to be patient and check back in a month. I called back in April, May and June. In April and May, I was told the same thing, it has been received, but it has not been assigned to anyone yet.
When I made the call in June, the woman on the phone asked me where I had been sending the return. I told I was sending it to the Fresno address like I was instructed to do so. She told me that was wrong and I need to send it to a different address called Substitute File Return. So esentially I have to start all over which is what she said.
I have to say I really am pissed off about this. This has been going on for 6 months and essentially it is nowhere.
Now, my advice to Brother B has been this. I suggested that he and I go to a tax attorney about this. Obviously, I as a friend and novice at that, am not having the desired result from the IRS. I feel like the IRS is so screwed up that they simply do not know how to give the proper advice to people, unless it comes to collecting their money. I feel that I have been given the run around, not necessarily on purpose, but because of the incompetence and lack of organization on the part of the IRS.
I guess I am wondering if anyone has some other advice on this. I will get my friend to a tax attorney, but he is stubborn old man and foolish too and it will take some time. But maybe there is something in the meantime that could be done.
Like how do I make sure that this return is going to the right department at the IRS and assuring that it will be processed.
Ok, I have a friend who I am helping out. There are two brothers, Brother A and Brother B. Brother A became ill about a year and half ago and Brother B obtained power of attorney for Brother A.
Brother A has had a past history of not filing tax returns. In fact, to the best of my knowledge, he has not filed a tax return since at least 1987. If I could go back further, it might reveal that he did not file returns prior to 1987 but the IRS either does not know or will not give the information.
I have been helping Brother B deal with Brother A's affairs. Well, actually I have been dealing with most of Brother A's affairs with Brother B's approval.
Ok, here is the situation. Back in 1990, one of the years that Brother A did not file a return, Brother A sold a house. Sicne he did not file a return, the entire sale of the house, $175,000 was tagged to Brother A as income and he was taxed accordingly on $175,000. That tax grew over the years of Brother A not paying it to a whopping $50,000. Brother A bought another house in 1992 which the IRS slapped the $50,000 lien on and when that house sold in late 2004, the IRS collected their $50,000 payday.
As it turns out, Brother A was 59 years old in 1990 and could have claimed the exemption on the gain of the sale of the house. In essence he would have owed no tax had he filed his return.
I believe that there is a ligitimate claim to the $50,000 that was collected in 2004. A 1990 return was completed.
Here is where the problem is coming in. In December 2004, the 1990 return was completed and sent to the IRS. About a month went by and I made a call to the IRS. They informed me that they had no record of the return but to wait a couple more weeks to check back. I waited a month which put me into February 2005. I again called the IRS and they informed me that they had no record of the return. The IRS agent was concerned because there was no record of the return and suggested that I fax it to him which I did.
I waited another month and called back to make sure that they had it. I was told that the return had been received but would take a while to process because it was so old and complicated. I was told to be patient and check back in a month. I called back in April, May and June. In April and May, I was told the same thing, it has been received, but it has not been assigned to anyone yet.
When I made the call in June, the woman on the phone asked me where I had been sending the return. I told I was sending it to the Fresno address like I was instructed to do so. She told me that was wrong and I need to send it to a different address called Substitute File Return. So esentially I have to start all over which is what she said.
I have to say I really am pissed off about this. This has been going on for 6 months and essentially it is nowhere.
Now, my advice to Brother B has been this. I suggested that he and I go to a tax attorney about this. Obviously, I as a friend and novice at that, am not having the desired result from the IRS. I feel like the IRS is so screwed up that they simply do not know how to give the proper advice to people, unless it comes to collecting their money. I feel that I have been given the run around, not necessarily on purpose, but because of the incompetence and lack of organization on the part of the IRS.
I guess I am wondering if anyone has some other advice on this. I will get my friend to a tax attorney, but he is stubborn old man and foolish too and it will take some time. But maybe there is something in the meantime that could be done.
Like how do I make sure that this return is going to the right department at the IRS and assuring that it will be processed.