NYS Dept of Taxation and Finance

[RealMcKoy]

Please advise....

 

Today (5/22/2014) I received a letter from NYS Dept. of Taxation and Finance claiming I owe them $1000.03 (Tax amount assessed $793.00 + Interest amount assessed $207.03) Payment due day date: 06/09/14.

 

The letter claims I owed the NYS Tax dept. because of Forgive Fed. Debt $7,600.00 CITIBANK SOUTH DAKOTA NA. They claim I was sent notification from IRS on 04/09/2012 of the above charges to my 2010 federal income tax return. I remember back in 2009 I settled a debt with Rubin and Rothman LLC for $10,000 on a $20.000 debt that was before I knew about Creditboards. I kick myself everyday that I paid them so much on a debt they paid pennies on the dollars for.

 

I know dealing with the IRS is like dealing with KGB, and maybe I am shooting in the dark for a resolution, but I never was notified about this debt.

 

My question is will I be able to dispute the interest that was assessed on the money?? I never received a letter. Why wait two years again to send me another notification strong arming me to pay within two weeks.

 

Any insight will be greatly appreciated

 

-RealMckoy

 

 

 

[ruscorp]

If you were insolvent or declared bk at the time the debt was forgiven you may be eligible to amend your return and file form 982.

 

Not sure how to amend the NYS return or if you need to.

 

I would contact a tax professional or attorney who can better assist.

Edited May 22, 2014 by ruscorp

[RealMcKoy]

I will have the explore my option sometime what these attorney fees are, it's more easier to just pay IRS. I will see what options I have as long as it doesn't cost me.

 

 

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[ruscorp]

Have you spoke with the IRS Taxpayer Advocate Service or the NYS Taxpayer Rights Advocate?

 

I got a 1099-C last year. I do my own taxes. I filed a 982 and told the IRS I declared bankruptcy.

 

Even if lets say I forgot to do that, I can always amend my federal return with a 1040X and NYS IT-201X.

[RealMcKoy]

I have not contact the IRS at this moment, I wanted a game plan before reaching out to them. I just remembered I paid the NY federal $1400.00 on this debt forgive for citibank back in 2013 because they took it from my 2012 tax return. So I guess my egg is cooked... I really don't want to pay the interest since I wasn't properly notified.

 

Thanks for the timely response. I'll do more research and see if I there is any wiggle room to negotiate having the interest remove before calling them. Or filing what you suggest above.

 

-RealMcKoy

 

 

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[mizliz1011]

you don't have to declare bankruptcy, you need to be insolvent with more liabiltities than assets. Or at least that is what my accountant told me. I would call the IRS and check on that.

[RealMcKoy]

you don't have to declare bankruptcy, you need to be insolvent with more liabiltities than assets. Or at least that is what my accountant told me. I would call the IRS and check on that.

Thank for the insight... One question. Do have to be insolvent at the time the debt occurred? Or right now (current financial situation)?

 

 

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[jobiggs]

If you dispute the bill with the IRS successfully, NYS will adjust the amount owed. They will not delete or adjust the interest unless the tax owed is adjusted and that only happens if the IRS supplies you with a redertermination letter.

 

So if you're just looking to protest the interest assessed, NYS will not get rid of it.

[RealMcKoy]

If you dispute the bill with the IRS successfully, NYS will adjust the amount owed. They will not delete or adjust the interest unless the tax owed is adjusted and that only happens if the IRS supplies you with a redertermination letter.

 

So if you're just looking to protest the interest assessed, NYS will not get rid of it.

Thx everyone for the feedback... I will call IRS first thing Monday to dispute the bill.

 

 

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