Questions for the Tax Lady: May 17th, 2010

Check out the following new Questions for the Tax Lady answers and feel free to ask me questions through one of the links below. You can send me an email, direct message or @ reply, and I will do my best to get an answer for you!

Question #1: I had a Toyota that I turned in before the end of its lease back in 1997. It took Toyota until 2008 to report the mileage to the IRS, and Toyota didn't send me anything to dispute them. The IRS now claims I own them over $800 and they ate my entire refund this year and are now saying I still owe them $300. What should I do?

I am assuming that you are talking about business miles that you deducted on your return, which you include on your tax return the year the miles were driven. I do not quite understand why the IRS would withhold your refund for a mileage issue from 1997, and highly recommend contacting them directly at 1-800-829-1040 to find out why your refund was withheld. If you need any further assistance then I would recommend talk to professional accountant, CPA or tax attorney in order to get to the bottom of this issue.

Question #2: How do I contact the Taxpayer Advocate Service?

Answer: The Taxpayer Advocate Service (TAS) is a free service offered by the Federal government, but not every taxpayer will qualify for TAS assistance. You must meet certain income requirements and be able to prove that you are experiencing an economic burden because of the IRS collections. To find out if you qualify to work with the TAS call the Taxpayer Advocate Service Case Intake at 1-877-777-4778. If you do meet their requirements, then head over to this page on IRS.gov to find a local office to contact.