Yeahhhhh...still going through it now....but one thing i will say...I almost did the " Call Ronni Duestch and pay almost nothing" crap.....after i got all they could do on paper....I called the irs and they made the same deal without having to send a 3k retainer.... they are much easier to deal with then 15 -20 years ago....as long as you don;t commit fraud ( willie and wesley!)
The statute of limitations is 3 years from your filing date, so a FULL 3 years and you will be in the clear. They cannot touch your return after this time (unless you've committed fraud, which has no time limit if discovered).
Realistically though, how long before you're likely to get audited? I'm not worried about fraud, I just want to avoid the hassle.
I have been audited by mail twice in the past two years. Each time it took the IRS about 1 year to ask about income reported on a W-2. The income was reported but through a LLC instead of being reported as personal income. I was expecting it since I had tried to get the orginization to use our business tax # vs a SSN ... but would they listen. Presented my case by mail with documentation and in both cases the IRS has closed them without any further action. CFMTrader
I went through an Audit in 2006 I had to send in all the trading info, stacks of papers, and financials. They worked with me, and it took about 5 months, in the end i owed 600 dollars in stead of 250k. They were real polite and they made sure I got copies of all 'letters" internal about my case. When its all over, the send you a letter, release of "lean". During the process, they did put a lean on my bank account, but I was able to remove funds when ever i wanted. My IRS dealing was not a horror story and it went smooth as I had proven my case, with paper work. If you'r squared away, you should not have a problem.
Yes it did. For the duration it was on the credit from what the letter stated. However, I don't really use credit. So, I never ck the score. I think the last time, years ago, I bought a car and they ran my score. I stole the loft I live in and had "Seller" financing because the builder can't move his product. No credit check, just assets cked and he gave me a 5.7% rate. I don't think "Seller" Financing reports to the credit companies. I have no credit cards and have no debt but my student loans and the Loft, which im paying on. I think my score sucks as far as FICA. :eek:
Both of my examinations happened about one year after I filed. So, no, you can't start breathing easier after three or four months. Wait at least two years for that breath.
And if you are indeed as stupid as I was and try to fudge, just cut them the damb check and get it over with. I sent them the check the day after they sent me the notice, and that was that. And OTOH, when you are right, and you know they are wrong, just send them the docs. They ended up sending me a check, with interest.
it doesn't seem fair that the IRS would do something that would harm your credit score if the tax issue was an IRS miscalculation/error in the first place. Did they contact you before slapping you with a lien?