1. March 2006: Received letter from IRS saying we owe money (with handy return envelope enclosed) saying we need to pay said amount or else. We have to sign letter (saying we are guilty) and mail back payment within 30 days.
2. Tax Accountant says: don't sign and don't pay
3. Okay didn't do that. Instead we sent a letter saying we disagree.
4. No answer
5. July 2006: Letter from IRS saying we are now delinquent and have a couple thousand dollars in penalties. Pay us now and we will stop the penalties (stop hurting you). If you disagree, file a petition.
6. Called tax accountant. Said: don't sign and don't pay.
7. Okay. Didn't do those things. Filed our petition.
8. Another set of Deliquency Letters.
9. Hired our little US Govt Tax person for $60. Filled out our paperwork.
10. Case # sent
11. Letter from Tax attorney asking for all reciepts etc.
Is this normal? I can't but feel we were never actually audited until after we hired the Govt Tax guy. What else can we do?