If disputing an IRS adjustment on 2009 taxes, should I pay the amount they say I owe or wait until resolved? 3 Answers as of December 01, 2010

I claimed a first time homebuyers credit on a home purchased by me and my parents (50/50). The IRS has sent me a notice denying the entire credit. I have submitted some additional documents to the IRS office and requested a phone conference, but have not heard anything back from them so I am not even sure what the basis is for the denial. (I think it may be because while my name is on the title and the purchase contract, it was not on the settlement sheet because the loan was taken out by my parents. But that is just a guess.) I do not know if I need to pay the amount they say I owe while this dispute is ongoing, or if I can wait until it is resolved.

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Mankus & Marchan, LTD
Mankus & Marchan, LTD | Tony Mankus
If you can, make a payment of the tax now. This will avoid any more interest and penalties if you lose. If you win, IRS will refund the money with interest. If you cannot pay - or don't want to pay - you can wait till the case is resolved, but you will have to pay additional interest and penalties if you lose. Ideally, you should get a tax attorney to help you through this process.
Answer Applies to: Illinois
Replied: 12/1/2010
LT Pepper Law
LT Pepper Law | Luke T. Pepper
You should pay the amount the IRS says you owe to avoid further interest and penalties. If you win the appeal, the IRS will rebate the difference.
Answer Applies to: Pennsylvania
Replied: 12/1/2010
Meyer & Yee, LLP
Meyer & Yee, LLP | Kent W. Meyer
Wait until you have more information. Do not pay yet.
Answer Applies to: California
Replied: 11/30/2010
Click to View More Answers: