What do I do if the IRS says I owe money when I don't?
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You should submit Form 911 to get the Taxpayer Advocate involved immediately, and consider requesting expedited relief to restore your passport.
If the IRS investigation ends up holding you responsible, you’ll still have the right to appeal and potentially petition Tax Court, especially if identity theft is involved.
Also, check if you’re eligible for Innocent Spouse Relief (Form 8857) or an Identity Theft Affidavit (Form 14039) if you haven’t already submitted one.
Lastly, monitor your IRS account online and keep all records of your calls and filings.
If the IRS concludes the debt is valid, you’ll get a final notice of determination. At that point, you can appeal through the IRS Office of Appeals and potentially file a petition in Tax Court (within 90 days). If the amount is based on identity theft or a spouse’s tax action, you’ll have extra options for relief — so don’t accept the ruling without exhausting those paths.
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IRS says I owe money, but I don’t — and now they revoked my passport. I reported fraud to the IRS and they are launching an investigation. They told me to wait for a response — is there more that I can do? What happens if they say I owe the money even when I don’t?
I understand how stressful it must be to deal with the IRS and the impact on your passport. Have you received any official documentation from the IRS regarding the amount they claim you owe?
Yes
Have you already consulted with a tax professional or attorney about your situation?
No
Is there anything else the lawyer should know before I connect you? Rest assured they’ll be able to help with your tax issue.
Yes
Hello! My name is Michael, and I'm an attorney ready to help! Your responses matter to me, so I only need a few minutes to review and respond to each of your posts.
Can you upload or describe what the IRS notice says, especially the notice number or code on the top right corner? That will help me figure out exactly what type of action they’ve taken and what your next steps should be.
The IRS notice was CP508C.
They informed me that because I owed a lot of money ($250k+) and didn’t pay it (I didn’t see the letter), they had notified the State Department to freeze my passport.
Ok, thanks! Just a few more questions. Thanks for confirming it's a CP508C notice. Have you already submitted IRS Form 911 to request a Taxpayer Advocate to intervene, or filed Form 8857 if this might be linked to identity theft or a spouse’s tax issue?
I’ve called the IRS multiple times now and spoken to multiple people. It’s also shown within my IRS online account.
Understood! So you're just wondering what it is you can do here, correct?
I don’t remember what form I filled out, but it was online and the IRS fraud department said they are investigating — but it will take a long time.
Ok! Did you need to tell me anything else? If not, I can start with answering your question.
They didn’t give me a copy of the form online, but it was through the official IRS portal and I’ve called IRS a couple times and they said they have it in their queue.
No problem! I’ll certainly address that. Anything else you'd like to add that you think is relevant before I answer?
No, just need help on what I should be doing.
Got it! I've been working on an answer while we've been chatting, so it'll just be a moment.
I'm so sorry about this situation! I want to address your situation with a detailed response, so if you have any questions, don’t hesitate to ask because this law stuff can get complicated.
You should submit Form 911 to get the Taxpayer Advocate involved immediately, and consider requesting expedited relief to restore your passport.
If the IRS investigation ends up holding you responsible, you’ll still have the right to appeal and potentially petition Tax Court, especially if identity theft is involved.
Also, check if you’re eligible for Innocent Spouse Relief (Form 8857) or an Identity Theft Affidavit (Form 14039) if you haven’t already submitted one.
Lastly, monitor your IRS account online and keep all records of your calls and filings.
If the IRS concludes the debt is valid, you’ll get a final notice of determination. At that point, you can appeal through the IRS Office of Appeals and potentially file a petition in Tax Court (within 90 days). If the amount is based on identity theft or a spouse’s tax action, you’ll have extra options for relief — so don’t accept the ruling without exhausting those paths.
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So I haven't heard from you in a while, but that's ok! I hope I’ve provided the information you were seeking. If you need more help, please let me know so I can continue to assist you.
