AboutMike Wellman Expertise I was a former Manager with Price Waterhouse, now PricewaterhouseCoopers, the largest accounting firm in the world. I have had clients in almost every industry and of every size.
I will only answer questions dealing with IRS problems such as delinquent tax returns, Offers in Compromise (Tax Settlement), IRS collection matters including installment agreements, liens, levies, seizures, audits, appeals, innocent spouse claims and injured spouse claims. All other will be referred to the question pool.
Experience Over 25 years experience in taxation specializing in IRS collections, examinations and appeals.
Publications New York Times, Wall Street Journal, Your Money.
Education/Credentials BBA, Baylor University.
Awards and Honors IRSOS.com won the Knowledgeweb award for educational excellence for content.
Expert: Mike Wellman Date: 1/15/2008 Subject: delinquent tax notice for 2005
Question I received a deliquent tax notice from my 2005 tax return from the IRS. They claim I owe another almost $5000 because my tax person did not include my Social Security Disability income on my return. He says he never got any 1099 or W2 from Social Security so he didn't know. I didn't get anything either?? Don't know how that happened, but anyway now I'm stuck with a $5000 deficit. I paid taxes that year but had negative returns the year prior and year after. Can I use any of the year before or year afters deductions? Are there other things I can do to try to offset this deficit? Thanks in advance for your help.
Mark
Answer It depends on what you mean by "negative returns". If you had positive adjusted gross income but the standard deduction and/or personal exemption made it negative - then no - there is nothing you can do. If your adjusted gross income was negative do to something like business losses - then you could use a net operating loss to offset income in another year. The problem is, unless you elected to carry a net operating loss forward - then it must be carried back two years before it can be carried forward.
