I have several problems with my taxes which I just found when I logged into my IRS account to create a new payment plan and discovered I’m non-compliant.
I’m non-compliant for tax year 2023. I worked out of state at $67k (GA), in state for $10k (FL), and as a 1099 employee at $7k (FL). I filed an extension, then I filed. I signed an offer in compromise.
For 2024, I filed an extension, then I filed a 1099 for $30k. I made $10k as a W-2 employee.
When I logged onto the website to add an offer in compromise to my existing one for 2023, the IRS had sent me a notice that they adjusted my income from $30k to $56k, and they increased my taxes. I also could not see evidence of my W-2 income.
I know I need to backfile for 2023, but I’m confused on how they didn’t receive it if I signed an offer in compromise. For 2024, I literally have no idea where the number is coming from. I simply didn’t make $26k more than I claimed. From what I understand, the IRS doesn’t monitor transactions in your bank statements unless you’re being audited. Even if they looked at tips from cash deposits, it definitely isn’t $26k. I know I can dispute the increase, but I’m not sure what to do about the 2024 W-2, especially if I didn’t get any notices about it being missing.
I feel like I should amend the 2024 return to make sure the W-2 information is correct. But I don’t want to initiate that before the dispute I think? I have absolutely no idea what to do about 2023 other than backfile. But I do know I need to become compliant because I need a payment plan or an OIC. I just don’t know where to start and talking to the IRS feels like talking to the police (I don’t plan on avoiding them though). I ideally would hire a tax professional, but I imagine the cost for three backfiled forms and an amended return will be much more than I can afford.
tldr:
I know VITA is an option, but would they be able to help me with two years including out of state returns, W-2 and 1099?
Should I amend 2024? If I dispute the adjustment will I get audited or anything? Should If I amend, should I do it before or after disputing?
If I do all these things will I become compliant to sign a new OIC?
Posted by nt199915
2 Comments
> they adjusted my income from $30k to $56k
According to your own figures, your income was $84k.
I’m having trouble following what you’re saying.
You submitted an OIC just for 2023? Has it already been accepted or is it still pending?
Generally, one of the requirements of an OIC is that you don’t accrue any new liabilities for at least 5 years. If you accrued a new liability for 2024, that could have caused your OIC to default.