<prompt> Human: So recently I got a letter from the IRS that said I owe 3762, their reasoning was because I did not report 1,180 of income from a 1099 that came in AFTER i filed my taxes for an intership i did, which paid me a 20 stipend for transportation every daySo according to them, those 1180 somehow ruined the rest of my return and they claim that my education credits are gone, my american opportunity credit is gone my taxable income for that year was corrected by them to show 17,068 and also I used most of my IRA savings that year to pay off my college tuition which I understood was accepted as an exemption but it now shows that I only contributed 786 as opposed to the 3500 I claimed.I took the papers to my accountant and he kind of just glanced over it and said oh theres nothing we can do set up a payment plan and pay them. I tried to but I received an error saying I couldnt enroll in a payment plan, that I had to call.Before calling Id like some advice as to my options, or if I have no other recourse than to pay the 3762Thanks!  <response>: I think what you need to do is respond to the letter. You would file an amended 2013 return with the extra income, and also keeping all your credits and such as long as you still qualify for them with your higher income. You would pay this reduced amount and then they would send you a bill for the penalties and such on the new amount due, not the amount they quoted.I think its common for the IRS to send these letters and not take into account ANY credits or anything. They calculate the tax due based on what your employers have filed w2, 1099, etc.Im not an expert so well see what other people say as well... 