Tax Questions

My step mom found herself in the same place after my father died - seemed he completed the taxes but never mailed them (for several years). She contacted the IRS and worked it out with them.

Def don't ignore the tax man - he needs to contact a local IRS office and let them help him sort out the mess.

Has he actually contacted the IRS and explained what happened? That is the first step. A lot of times you don't owe as much as they say because they only have access to what is provided.

An example would be I didn't bother to report a loss two years ago, figured it is a loss I didn't need because I already maxed out my deductions. Well apparently Scottrade sent only the sales and not the purchases so I got a tax bill for over three thousand. What do I owe, nothing, I paid my taxes, ya know? I will amend the taxes and all will be well with the world.

He needs to contact the IRS and work with them. I keep great records so this was a non issue for me. He will have to work with them. With any luck he doesn't actually owe anything but he needs to straighten it out.

No accountant is going to work for nothing but that doesn't mean don't get an accountant. First explain what happened to the IRS. What the IRS will not feel is compassion for him not knowing. You sign the damn thing ya know? You would have to be an idiot not to realize you never signed your return.

S.:

The IRS doesn't care about excuses. if you are an able-bodied adult and have an income - you are EXPECTED to do your taxes.

He needs to contact the IRS, find out how much he owes and then set up a payment plan. If they have already caught up with him? It's possible he can submit taxes for previous years so that he can include donations and other tax write-off's but really? He needs to get in contact with them.

I wouldn't use a company that offers to cut their tax bill in half. They may end up charging him the other half. Just go straight to the source- the IRS and get it figured out there. They can do an offer in compromise or work out a payment plan.

No excuses. No nothing. JUST DO IT.

The last thing he wants is his wages garnished, especially from the IRS. If they have already placed a lien on him - then it's too late to compromise with them.

If he's getting calls from the IRS? He NEEDS TO TELL THEM THE TRUTH!!!! THEY WILL WORK WITH YOU!!! My best friend owed over $30K in past due taxes (she was a contractor and didn't send in enough over 10 years). yes, it was a HUGE mess. She told them the truth and worked out a payment plan for her. She made an offer in compromise on the taxes that were the oldest and they took her offer.

CALL THE IRS. DO NOT IGNORE THEM!! DO NOT USE A COMPANY.

As far as tax forms needing to be "signed", as GrammaRocks said, I file mine electronically, and there is not a physical signature needed. Of course, I do show it to my hubby, but he trusts me to fill it out completely. I've been doing my taxes online with TaxActOnline for years..... you don't have to actually send in any forms or physical signatures.

She could have been lying to him, and saying she had done it..... but just didn't.... and frankly, the IRS isn't going to care whether she lied to him or not... they will say that he needed to make sure things were taken care of properly.

I agree with Jo W and all the others that said it....... he needs to talk to the IRS and see what he needs to do... it doesn't help to try to avoid it.....

If the IRS is already contacting him, he needs to deal with them.

I had a problem with the IRS. I won $10K in the lottery (yay me!) and I didn't have them take out enough taxes. I worked out a payment plan with them. It's wasn't a lot of money, about $1800. They were very nice and professional.

My neighbor had problems with a company that claimed to be able to help cut your back taxes bill in half. They ended up having to pay fees almost to the amount they owed the IRS.

He needs to contact the IRS and ask them how they would like to handle it, they will probably put him on a payment plan, if he makes payments on time he will be okay, if he misses one they will start the garnishing process. In the meantime while doing the divorce he needs to make sure the court knows that wife is half responsible for this debt. The irs is not going to play favorites, they will just want their money.

If she had done them he would have signed them so I think he probably knew they weren't filed, especially since he owes money for prior years.

When the IRS calls he needs to man up and tell them the truth, they aren't going to go away, or accept excuses. Been through this with my ex who didn't file for years, tell your family member he has to take responsibility now. IF he contacts the IRS and makes his payments they won't garnish his wages, otherwise they will.

Also, from what I understand you can only back file up to 3 years, so he better get on the ball now because for some years it's too late to do anything, he has to go by what the IRS tells him he owes. He should request the paperwork to file his back taxes ASAP, give the IRS his ex's address so they can contact her to pay her half, (that's what I had to do) and may have to get a second job because they don't care how much he makes, just what he owes.

He needs to talk to an attorney who specializes in this. My hubby went and filed for about 4 years a few years ago and even though they owed him a refund each and every year he is still paying a garnishment on his SSDI check each month. It is sort of nice in a way though. They worked with us better than any other creditor that we were dealing with when hubby had his heart attack and quadruple bypass surgery.

Since they are garnishing his check, it's only about $50 per month, no one else can get a judgement to take more out each month.

Even though I would love to pay off our outstanding debt or file bankruptcy it just is not in the future for us since we have such a low income. If a creditor calls us about a bill we just tell them they can get in line behind the IRS. They typically do not call back.

I can tell you that, despite their threatening calls/letters, the IRS is actually willing to be flexible and to work with people who are in tough situations. They will settle for less than the owed tax but they want to do that with people who are cooperative, who admit they owe money but can't pay it, etc. Divorce is a classic problem, economy is another, being laid off is another, etc.

I wonder if he could get help from an accounting/business department or a tax law department at a college or law school? They might do his returns for him. Or he could pay a student a reasonable fee.

If he owns up to his ex not doing it, and says "How can you help me and what can I do?" the IRS will be initially difficult and ultimately cooperative. They will be better off getting something, anything, late from him than the current "nothing at all". Not sure how long this goes back, but they don't keep pursuing debts that are more than 10 years old.

He should go to/call his local IRS office (and the state tax office, if that's involved too) and see what he can do. If he doesn't find cooperation, he should go to the next supervisory level. They will soften after initially stonewalling him. They will appreciate his efforts to make things right.

The worst thing he can do is ignore this and let it get worse.

They will work out a payment plan for a portion of what is owed, and hopefully help him prevent this from continuing with subsequent tax years. Tell him not to be afraid, that SO MANY people are in this situation, and it CAN be worked out if he shows he is cooperative. The IRS knows they cannot get blood from a stone - if he doesn't have the money, he doesn't have it. They can also help protect him against future actions by his ex.

Good luck.

It sounds like you don't know the whole situation and that can make a difference in how the matter should be settled. Were tax returns ever filed? Did he and his wife, at the time, file separately or jointly? What years did he never file? If joint returns were filed and the taxes haven't been paid, they both him and his ex-wife are both responsible. Maybe he needs to talk to his divorce attorney.

The absolute worst thing he can do is go ignore the IRS. The top of his priority list should be straightening out this mess, because it will not go away and will only get worse.

What should he tell them? THE TRUTH. Ever one thinks of the IRS is the bad guy. The only reason they are the "bad guy" is because your family member put them into that position. He owes them money and they will do whatever is necessary to collect it. Unless he makes arrangements to start working with them, they will begin garnishing his wages. They will work with you.

The amount of tax that is due cannot be reduced. However, the interest and penalties can be and often are reduced, especially if he can show just cause. He can do this himself, but would probably have more sucess if he hires a tax professional.

Depending on his tax situation, he may or may not be able to do his own taxes. Considering he never did them in the first place, that would indicate he needs the assistance of a tax professional. He needs to find a good CPA who specializes in this area. Do not trust a company like H&R Block for this type of situation.

He does need an accountant. And he needs to work with the IRS. If he doesn't work this out, they WILL garnish his wages and attach liens to what he owns.

I hope he gets his life together. How could he have let this go all these years? Has he been depressed? Did his wife steal from him? (Say that she paid taxes but pocketed the money?) Perhaps you could look into being screwed over by a spouse - there's a term for it, but I can't remember.

I'm sorry for this guy, but he is going to have deal with the IRS and get some help too.

Dawn

I would call Jeffrey Leving, I think he's the guy who advertises about tax problems. This is somehting you don't want to mess with if you don't have to. Let people who know and can protect you represent you.

I think it's called a 1040x form. One for each year has to be filed & I believe he has to fill out a regular 1040 for each year as well. I know someone who had to do the same thing. They went to a tax preparer & just asked for advice & they helped by telling this person what they needed to do & didn't charge at all for the advice. All the forms he may need are found on the IRS website. I do suggest, however, if he mails the forms in, send them signature required or delivery confirmation, just to proove he sent them in. That way, there's no question he sent them if the IRS says he didn't submit them. I'm sure the IRS will be willing to work out some payment arrangements w/your friend, he just has to ask about it I'm sure. Hope this helps, good luck.

Call Harold Templeton at ###-###-####. He is a tax preparer and certified financial planner who works out of his home in Hoffman Estates. I'd guess he's about 60 years old. My husband and I have used him to do our taxes for almost a decade now, and I can't say enough good about his kindness, patience, integrity, responsiveness and attention to detail. We get great service without a fancy price since he is not a CPA/accountant. We also do everything by phone and e-mail, although when we first met him, he came to us - we have never even had to go to him, which makes it so convenient.

My mother-in-law didn't file taxes for years, and Harold worked with my husband to get that situation squared away recently. If your friend calls Harold, tell him L. referred him!