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| *Ostroff, Fair and Company>>>United States Taxes |
Federal Tax Problem? |
We cashed out some stock options in 2004 and just found out in January that there was a problem. Apparently the financial company that managed the stock options is supposed to report the full price (not the smaller amount we received) to the IRS. We had a portion kept out from the amount given to us. We thought this covered the taxes. We didn't know about any additional forms - didn't receive any 1099 or anything. Now we're trying to figure out what we need to do. The IRS just said that we need to pay the full amount they're saying and then 10 - 12 weeks later they will go over the amended return and give us money back. They're saying we owe almost $30k and we believe it to be closer to $12k. A tax guy told us to do an amended return and another form (Sched D maybe?) and send it in to them. In the meantime, I don't want them to levy or garnish wages! I feel like we've gotten so much conflicting information - my head is spinning!! Any ideas? Suggestions? Past experience? HELP!! in your situation its going to be worth paying the extra 100 or 200 bucks over a regular preparer to do your return. Find an experienced EA or CPA and have them do it for you it will save you some stress. First, get the 1040X done ASAP! You need the confirmation slips from the broker to do a Schedule D. Call the IRS and ask for 120 days to Full Pay. Chances are they will give you the 4 months. That should be plenty of time to get the 1040X filed. Send it Certified Mail. Once you get confirmation that IRS has it, call them and ask for a delay to process the1040X. You can submit a payment with the 1040X for the correct amount. If you can't afford to do so, payment options are available. Bless you. I can only imagine. Hire a tax attorney to help you with this. What happened to the "portion of the money that was kept out." Talk to the company that handled the transaction. It seems strange that the IRS knows about this, but you didn't get 1099s. That's how the IRS gets it's info. Look over the papers that were given to you to close this transaction. Just remain calm, but act quickly to gather whatever info you can to support you case and get someone other than a "tax guy" to tell you what to do next. Write a letter to the IRS stating that you are gathering your information and that you'd like to discuss a payment plan with someone, if necessary, because you thought you had done the right thing. Just an opinion. pauley t is an online jihadist he screws up his english every time You need to file a 1040X (amended return) ASAP. If I were in your shoes, I would attach a check for the amount I believed I owed. If the IRS disagrees with the amount, they show me how they arrived at their number BEFORE I pay more. I doubt they will garnish anything before they review the 1040X. As long as you are cooperation, they will ASK for the money before garnishing anything. We can help with this type of problem. Click my info and send me a personal message. Most likely, you will need to report the GROSS sale price of the stocks. You then reduce that amount by the basis to determine the taxable portion. I doubt that you would get taxed as heavily as it sounds. If you did this as a "cashless option exercise", your maximum fderal tax is 35% or so of the amount you received. That's assuming you made in the high 6-figures. If you are a typical person, it's more like 25% of the amount you received. We can also help with a payment plan if indeed you owe a large balance. -A Darn Good Tax Advisor Wow... having a tax professional prepare your taxes every year would be recommended. H&R Block and other tax services also offer legal protection for your return if they file it for you. Even though a lot of tax professionals will tell you not to use them, unless you find a tax professional that will also provide legal protection for you if you should get audited, it is a handy thing to have! Also, I found the below website which offers $500 for your filing expenses this year if you follow their instructions. |
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