Company messed up my mom’s tax reporting and now she owes $60k to the IRS by the 26th

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This sounds fishy as hell. There just aren’t that many ways her *employer* could cause a problem like this. Her tax preparer, sure – but unless she was working for H&R Block and having them do her own taxes, this doesn’t sound right. If she can’t get to the bottom of this herself, she needs to hire an accountant ASAP to understand the scenario and figure out what happened, and probably a tax lawyer to help manage the process. If she truly does owe the money, the IRS will do a payment plan. But I have a hard time wrapping my head around this – if her employer screwed up the withholding, your mother would have seen a big impact in her tax filings, and it would have been corrected then. For the IRS to bring this information now suggests that the company had previously given the IRS incorrect information, and has recently corrected it. That’s unusual, and normally one would expect (even former) employees to be given a heads up in this scenario.


Even if her employer didn’t withhold the correct amount of taxes wouldn’t that get caught when your mother filled out her tax returns? Three times?


What is the letter or notice number, identified in the upper right corner of page one? What is the nature of the “tax withholding or reporting” discrepancy?


She needs to talk to the IRS. The only plausible scenario I can think of off the top of my head where someone could get this screwed is if they were made a 1099 employee and not told this was the case. That said, if that’s what happened, it should have been obvious to her 3 years ago.


She needs to hire a reputable CPA. Note, if there was an error on her taxes by default the IRS will treat that 60k as earnings when in fact it might not be. She needs a CPA do sort it all out and figure out what she truly owes. It’s very rare the IRS estimate is correct especially when dealing with issues like this.