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Old 07-18-2011, 08:46 PM
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Join Date: Apr 2011
Posts: 5
How I can report taxes about 2007?

Hello,

I do not know that a company reported some income (~$1,000) in 2007 until today because I did not stay in USA from July 2007 to Dec. 2009, and I did not hear any news from the company. That means, I do not have W2 in 2007 and IRS said that they already charge penalty fee and interest. My questions are

1. could you calculate an approximate amount for this case?
2. how I can report the 2007 tax?
3. it is possible the IRS reduce the penalty fee or interest after I file this?
4. how can I write the latter to pursue them?

Please recommend to me.

Thank you.



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Old 07-19-2011, 03:41 AM
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Posts: 5,258
“1. could you calculate an approximate amount for this case?”--->I don’t think so due to lack of available information for your taxable income/ quarterly estimated taxes/ quarterly self employment taxes or tax status,i.e., an EE getting an W2 or an IC getting’ an 109MISC or etc etc.. Basically,the IRS has a number of penalties you can incur depending on yoiur circumstances. IRS penalties for ndividuals include underpayment penalty, late filing penalty, estimated tax penalties, return related penalties, failure to pay tax penalty and failure to file tax return penalty.Calculating your U.S. tax penalties and interest can be relatively simple or very complex, depending on your income and the number and complexity of your financial transactions. You must calculate any "failure to file" penalties by adding 5 percent to the total owed for each month the tax return is late. Calculations can stop on the day you file your return. For example, if you are more than five months late, multiply the balance due by 25 percent/ You also need to calculate any interest due on late or unpaid taxes by looking at the current federal short-term federal funds interest rate and adding 3 percent to it. The IRS charges interest compounded daily on late tax payments. The IRS determines interest rates at the beginning of each financial quarter. The rates may increase, decline or remain the same.Interest begins accruing on the date the return is due and ends the day the IRS receives payment in full. You also need to expect the interest rate on unpaid federal tax to change every three months. There is NO statue of limitations on the failure to file and report payroll taxes (Social Security, Medicare, Unemployment, withheld income taxes).Since you owe taxes, the IRS has calculated penalties and interest on the amount owed.
“2. how I can report the 2007 tax?”----> Filing a past due return may not be as difficult as you think. You need to file yur 2007 tax return that were due, regardless of whether or not full payment can be made with the return. Depending on your circumstances, your filing late may qualify for a payment plan. All payment plans require continued compliance with all filing and payment responsibilities after the plan is approved. However, full payment of taxes saves you money.You can file your late return, 2007 return, online. Contact your tax preparer nearest you in your local area.
“3. it is possible the IRS reduce the penalty fee or interest after I file this?”-->I guessso; You may seek professional advice. If your case is complex or severe, it might be wise to first consult with an attorney who specializes in tax issues before contacting the IRS. Oryou may contact the Taxpayer Advocate Service, an independent organization within the IRS that can assist taxpayers in reducing tax penalties, in your state. You can locate your local Taxpayer Advocate office online at IRS.gov or by calling (800) 829-3676. OR you can choose an installment agreement, you make payments on the tax you owe. That sounds like a good deal, but you can save money by paying the full amount you owe as quickly as possible to minimize the interest and penalties you’ll be charged. You need to take action now, or you may face additional interest and penalties as time goes by.
“4. how can I write the latter to pursue them?”--> As said above please choose of the options.
“ Please recommend to me”--->you may contact the Taxpayer Advocate Service UNLESS your taxation situation is very complex or serious. Or you may choose an installment plan. Good luck~~



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Old 07-19-2011, 11:03 AM
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Join Date: Apr 2011
Posts: 5
Thank you.

I appreciate your kind response. I will try to do that. Thank you.



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