Owe taxes from year. But cannot amend. Issue with citizenship?

S

SDCA123

Registered Users (C)
Hi,

I just realized that there was a mistake in my 2001 tax returns and after correcting the mistake I owe a few hundred dollars to the IRS.

However, the IRS never got back to me on my original mistake. I think they were busy catching big fishes.

Anyway, I contacted a knowledgeable CPA and he said that 2001 taxes cannot be amended as it is about 8 years old and that taxes can be amended only for the last 3 years from the current year.

I am eligible for citizenship and technically I owe taxes on 2001. I am not sure what to do? Will it cause any issue with citizenship? What can be done in this case?

Thanks,

SDCA123
 
SDCA123 said:
Hi,

I just realized that there was a mistake in my 2001 tax returns and after correcting the mistake I owe a few hundred dollars to the IRS.

However, the IRS never got back to me on my original mistake. I think they were busy catching big fishes.

Anyway, I contacted a knowledgeable CPA and he said that 2001 taxes cannot be amended as it is about 8 years old and that taxes can be amended only for the last 3 years from the current year.

I am eligible for citizenship and technically I owe taxes on 2001. I am not sure what to do? Will it cause any issue with citizenship? What can be done in this case?

Thanks,

SDCA123
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The CPA told you incorrect thing. You can amend taxes for ANY year - however if you expect refund, IRS will NOT give you refund for any yrs past 3 yrs.

In fact a few months back, my state sent me a letter that I owed them some money back from 2004- that yr I had gone to work in another state and I had spent only a few months here - and obviously they did not have records from the other state.
 
SDCA123 said:
Anyway, I contacted a knowledgeable CPA and he said that 2001 taxes cannot be amended as it is about 8 years old and that taxes can be amended only for
Click to expand...

I hate to argue, but that was NOT a knowledgeable CPA.

As NewLPR says, ANY year can be amended and the IRS wins one both ways.

If you owe with the amendment you still owe, plus possible fines and interest.

If there was to be a refund, then the IRS gets to keep that for all years beyond the most recent 3 years.

If you know what needs amending do it yourself. At the top of the form about 2" down there are a bunch of check boxes. Look for "Amended return" and check that.
 
SDCA123 said:
Hi,

I just realized that there was a mistake in my 2001 tax returns and after correcting the mistake I owe a few hundred dollars to the IRS.

However, the IRS never got back to me on my original mistake. I think they were busy catching big fishes.

Anyway, I contacted a knowledgeable CPA and he said that 2001 taxes cannot be amended as it is about 8 years old and that taxes can be amended only for the last 3 years from the current year.

I am eligible for citizenship and technically I owe taxes on 2001. I am not sure what to do? Will it cause any issue with citizenship? What can be done in this case?

Thanks,

SDCA123
Click to expand...

There's a 3 year limit to amend a return if you are due a refund.. However, if you discover a mistake that would make you owe taxes and it's been more than 3 years it's unlikely that the IRS would discover the mistake unless it's brought to their attention. This being said, on paper you don't actually owe any taxes until the IRS is notified of your mistake, therefore you would answer No to question about taxes on N-400.
It would be best for you to wait until after you become a citizen to notify the IRS (if you have a compelling need to do so) to notify them of the mistake and take care of it them.
 
SDCA123 said:
Hi,

I just realized that there was a mistake in my 2001 tax returns and after correcting the mistake I owe a few hundred dollars to the IRS.

However, the IRS never got back to me on my original mistake. I think they were busy catching big fishes.

Anyway, I contacted a knowledgeable CPA and he said that 2001 taxes cannot be amended as it is about 8 years old and that taxes can be amended only for the last 3 years from the current year.

I am eligible for citizenship and technically I owe taxes on 2001. I am not sure what to do? Will it cause any issue with citizenship? What can be done in this case?

Thanks,

SDCA123
Click to expand...

If its a 2001 return, its buried. Why would anyone even open it to find out if there was a problem? If it were in the past 5 years I would be concerned. In fact I believe IRS rules state that you are only required to keep records for the previous 5 years and it should be OK to discard the rest. Don't you remember! You discarded your 2001 returns last year while on the trip to Honululu..... :D :D (kiddin!). Are you trying to dig up a grave? :confused:

I am in no way implying or suggesting that you cheat. I would have suggested the same thing if you (or IRS) made a mistake in 2001 and IRS owed you money. But I do suggest that you find a better CPA. :)
 
As far as I remember the statue of limitation for the IRS to disagree with your figures is 3 years since you filed your last return for that year. That is one of the advantages of filing a tax return. It triggers the counter.
 
acr said:
As far as I remember the statue of limitation for the IRS to disagree with your figures is 3 years since you filed your last return for that year. That is one of the advantages of filing a tax return. It triggers the counter.
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ACR,

When was IRS authorised to have a statue? Anyone seen this statue that ACR is referring to? I live in DC, but I haven't see it... can someone explain what it looks like? :confused: Lastly, only IRS governs on statutory grounds as established by US Congress, the statue has never being authorised by Congress and it is illegal...:)
 
Al Southner said:
ACR,

When was IRS authorised to have a statue? Anyone seen this statue that ACR is referring to? I live in DC, but I haven't see it... can someone explain what it looks like? :confused: Lastly, only IRS governs on statutory grounds as established by US Congress, the statue has never being authorised by Congress and it is illegal...:)
Click to expand...

Yes, you right, thanks.

The statute of limitations does not apply in the case of a false tax return or fraudulent tax return filed with the IRS with intent to evade any tax. See section 6501(c)(1) of the Tax Code and section 301.6501(c)-1 of the Tax Regulations.
 
acr said:
As far as I remember the statute of limitation for the IRS to disagree with your figures is 3 years since you filed your last return for that year.
Click to expand...

Hi ACR,

It is actually 5 years and you should keep all documentation, but they can go back as far as 8 from the current year.

The 3 years is only for a refund, beyond that the IRS gets to keep that. :)
 
acr said:
How about the code I just found that says if the intent is present there is no limits, the IRS can collect taxes even after you are dead.

http://www.etaxes.com/statute_of_limitations.htm
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I don't concern myself with tax issues, I don't pay taxes and it is legal. There is a "statue" which enables me to NOT pay anything, but my wife is the Chief Financial Officer of our household, handles all the money and tax issues. I just sign the returns and declares that I have made $0 for the filing year, even though I have made a whole lot of $$$...:D

You should learn to read closely, "Many people incorrectly believe that the IRS can collect back taxes until the day you die. Some believe the IRS can collect taxes even after you are dead." Fortunately, the law isn't that bad. The statute of limitations limits the time during which an action can be brought by the IRS for a tax audit and the time for IRS tax collection activities. Generally, there is a 3-year statute of limitations for the IRS auditing a tax return and a 10-year statute of limitations for the IRS collecting tax. The operative word, incorrectly..
 
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