My mom has 6 years of unfiled tax returns. Should she contact the IRS directly to settle, or use a lawyer?
Saturday, May 31st, 2008 at
12:10 am
Business Maniac asked:
She had three kids in the meantime and started a business. She may qualify for a settlement or forgiveness, but is it worth it to pay high fees if she can do it herself?
She had three kids in the meantime and started a business. She may qualify for a settlement or forgiveness, but is it worth it to pay high fees if she can do it herself?
Tagged with: 6 Years • Contact Irs • Mom • Tax Irs
Filed under: Attorney FAQ
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cpa first to file the taxes. then if she should owe then pay up but will be hit with interest and penalty’s. She may even get a refund
If I was you,You should get a Lawyer.Here you go this help you (JK Harris & Company | (800) 875-9137)
1) go to the IRS website download the old forms, fill them out and see if there is a reason to worry at all….
2) if she owes taxes then call the irs directly. (They have a new “nice” attitude). They could very well work with her.
3) if she owes taxes, and if the IRS won’t deal reasonably, then check out a tax attorney
Neither. The IRS won’t even discuss any kind of settlement until her tax liability is established. She does that by filing the missing tax returns. Although she could go to a tax attorney for that, it would be much cheaper to either do it herself or hire a local tax pro (such as an Enrolled Agent) to handle the preparation of the missing returns.
Once her tax liability is established, the IRS will work with her to set up a payment plan to get right with them.
The IRS only considers settlements for less than the total debt in cases where the is no possibility of the taxpayer being able to pay the debt in full. Less than 20% of all Offers in Compromise are ever accepted by the IRS. If she has over about $20k in tax debt and thinks that she might qualify for an OIC she should consult with a local EA or CPA for assistance. Don’t waste your time with the firms that advertise on TV or radio; they are a ripoff for the most part.
Doubtful that she will qualify for settlement or forgiveness. . . .what gave you that idea?????
She needs to prepare her tax returns, by herself, with a professional. . . .but probably NOT with IRS. She can purchase software, do it online, go to paid preparer, EA, etc. She can still file 2007 as efile IF she files before 1015, so get moving! IF she is entitled to any refunds, IRS only pays on returns back 3 years, but collects taxes back more years.
There’s a federal crime called tax evasion, and I’d guess the IRS has Mom in her sites. Having had 3 kids and starting a business is NO EXCUSE. Everyone else has to file their taxes, and so does MOM. Al Capone died while jailed not for murder or bootlegging, but tax evasion.
After preparing her returns and figuring out if she owes/ how much she owes, she should consult with tax professional to make sure she has prepared her returns correctly and for tax advice in moving forward.
did she have income? thats all they care about really taxing your income no income no tax
is her business a successful moneymaker?
She should contact IRS first and if she needs and of your W2/1099 they will send them to her. They will give her a date to file by.
Once all tax returns are filed and processed IRS will send her a balance due notice for any year she owes and options to pay the amount back.
IRS will not set up an installment agreement until all tax returns are filed.
Have her call IRS at 1-800-829-0922 or 1-800-829-8374; or she can visit her local IRS office.