Need urgent help please

tompham101 · #1 (**permalink**) 03-20-2014, 07:09 AM

My name is Tony. I am living in San Jose, CA. I have a trouble with IRS and would like you to have some ideal for me how to deal with it. 3 years ago I had ask someone to take out my IRA for me (this person is owner financial company). The amount of money to take out is 80k and he told me the paper work cost 600usd and he estimate the tax + penalty around 20k. I agreed and pay him one time 20k in advance. But the problem is every year I came to ask him to fill out my tax, he try to hide from me. From his attitude, I suspect he did something wrong and ask him to pay back my money and let me pay for tax myself. He send me a invoice with charges is 10k. I ask him why the cost so high and from my understanding withdraw IRA ealier only cost tax + penalty and no more hidden cost. He told me the procedure for taking IRA is complicated. Luckily every time I came to his office I bring my voice recorder as a evidence later if we face in court. I did write him a letter to tell about that but he never answer me. As a business owner he should nice with his customer but he did not. I just want to take back my money and go to IRS office admid my mistake and willing to pay back my penalty and tax. I do not want to make this noisy to public. Can you tell me how to do it?
Do you think the best way for me is to go to IRS office and tell them every thing happen?
If I go to lawyer, they will charge me a lot of money.

I am really appreciate your help.

Best Regards

Wnhough · #2 (**permalink**) 03-20-2014, 10:23 AM

Quote:

Originally Posted by tompham101

#1;My name is Tony. I am living in San Jose, CA. I have a trouble with IRS and would like you to have some ideal for me how to deal with it. 3 years ago I had ask someone to take out my IRA for me (this person is owner financial company). The amount of money to take out is 80k and he told me the paper work cost 600usd and he estimate the tax + penalty around 20k. I agreed and pay him one time 20k in advance. But the problem is every year I came to ask him to fill out my tax, he try to hide from me. From his attitude, I suspect he did something wrong and ask him to pay back my money and let me pay for tax myself. He send me a invoice with charges is 10k. I ask him why the cost so high and from my understanding withdraw IRA ealier only cost tax + penalty and no more hidden cost. He told me the procedure for taking IRA is complicated. Luckily every time I came to his office I bring my voice recorder as a evidence later if we face in court. I did write him a letter to tell about that but he never answer me. As a business owner he should nice with his customer but he did not. I just want to take back my money and go to IRS office admid my mistake and willing to pay back my penalty and tax. I do not want to make this noisy to public. Can you tell me how to do it?

#2;Do you think the best way for me is to go to IRS office and tell them every thing happen?

#3;If I go to lawyer, they will charge me a lot of money.

I am really appreciate your help.

Best Regards

#1;it is a legal/moral issue , NOT tax related issue;and you ares till responsible for the penalty/tax anyhow.just for reference, generally, if like most people you've always made tax-deductible contributions to your traditional IRA, the entire early withdrawal is taxable. If you've made nondeductible contributions, however , meaning that you've already paid income tax on a portion of the contributions , you must pay tax only on the portion on which you have not already paid income tax. For example, if 20 percent of your traditional IRA comes from nondeductible contributions, only 80 percent of your early withdrawal is taxable.

#2; I guess the IRS is not helpful on the issue; it is a legal issue between you and the retirement plan admin.

#3;Needless to say, this is tax forum so I guess you need legal professional assistance form a lawyer to settle your issue with the financial company guy.
just basis common sense advice;Legal services aren't cheap, and you should know how much are you willing to spend up front. Good representation may come at a steep, but not unreasonable, price.

When you're shopping for legal services, always ask potential attorneys to fully explain their fees and billing practices. Don't hesitate to ask detailed questions and don't be embarrassed. A lawyer's willingness to discuss fees is an important indicator of client service.