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Before I left for my continuing education class in Arizona, Peggy Nicholson (http://www.bergernicholson.com/) an Estate Attorney referred to me a couple from Antioch who needs help in negotiating with the IRS and the State on taxes due. The couple told me that they lost their house and their rental property in 2009; their tax return was prepared by the company that you see a lot when you're driving around. They told me that they owe $24,343.00 from the IRS and $13,309 to the State; they sent their application for an installment agreement to the IRS to pay $200.00 a month. The IRS rejected their offer of $200.00 a month; the IRS wants them to pay $400.00 monthly instead of $200. Looking at their take home pay even $200.00 a month would be very challenging for them to come up with. I know there is no way that this couple with 2 kids would have been able to pay for $400.00 a month just to the IRS. I did review the returns (Fed and State) and after gathering all the data and did some calculations this couple is actually owed refunds from the IRS of $5,662.00 and $1,422.00 from the State. They were so relieved after I told them that they don't owe $24K to Federal and $13K to the State, and they are actually getting refunds from the Feds and State. I told them to go back to the company that prepared their returns and have them amend their returns, this couple said "we don't want to go back to that place, and we don't even want to see their faces". I went ahead and amended their returns I just received a copy of the letter sent to this couple by the IRS stating that they have received the amended returns and that their refund is on its way what a relief for this couple! I told this couple that God is sure watching over them that's why the IRS denied their monthly installment offer of $200.00 because they don't owe it! The reason why I am sharing this story is because it would have been a sad story that this couple would have paid about $38,000 due to the mistake of a tax preparer. I can't blame this couple for not questioning their tax returns outcome because they assumed this tax preparer prepared their returns correctly, unfortunately not. So please if you or someone you know have similar situation, make sure that you or they get a second opinion. This couple would have work for years before they could have paid off this amount of tax bill. Luckily, in this situation, it is a happy ending for this couple. Please share this story if you care. I hope this will not happen to you or your family member.
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