haven't paid taxes in 11 yrs.?

Question

someone out there that resolved a similiar situation with some sage advice. i've been putting off the inevitable. i need to know answers to several questions: do i need an attorney if i have no assets--property, etc. if not, do i use a tax negiotator or go solo? and if i do need an attorney, what would be reasonable fee for their services. i owe approximately $40,000 to the IRS and all i have is a retirement account that i can liquidate--with a substantial penalty involved. i'm willing to pay what i owe, but not the penalties and interest because i still have to deal with california's franchise tax board bill. if they won't budge is the possibility of bankruptcy a good bargaining chip? or can it backfire with possibilty of jail time. help. i let this go because i have major medical problem (physical) that had me feeling soo bad that i thought was going cause me to die young, thereby relieving of the burden. well, i didn't die and the malady is treatable. so no lecture, just advise, pls

Answer 1

Hire a tax lawyer. Agree on his fee before he begins work. Don't try to do this by yourself.

Answer 2

At this site you can find solutions from different companies: QUOTEHELP.NET-

RE Haven't paid taxes in 11 yrs.?

someone out there that resolved a similiar situation with some sage advice. i've been putting off the inevitable. i need to know answers to several questions: do i need an attorney if i have no assets--property, etc. if not, do i use a tax negiotator or go solo? and if i do need an attorney, what would be reasonable fee for their services. i owe approximately $40,000 to the IRS and all i have is a retirement account that i can liquidate--with a substantial penalty involved. i'm willing to pay what i owe, but not the penalties and interest because i still have to deal with california's franchise tax board bill. if they won't budge is the possibility of bankruptcy a good bargaining chip? or can it backfire with possibilty of jail time. help. i let this go because i have major medical problem (physical) that had me feeling soo bad that i thought was going cause me to die young, thereby relieving of the burden. well, i didn't die and the malady is treatable. so no lecture, just advise, pls

Answer 3

1. You have made money for 11 years, and had the use of that money each year for 11 years. That is where they will have very little time for you unless you plead with them...and I mean go in and beg for mercy.

2. The IRS can do anything they want, including jail...or don't you watch tv.

3. The best thing you can do is find the local IRS office near your home, and ask for an appointment.

4. They can set up installment payments that work within your budget. However if you miss one installment, they will shut you down...with so much paperwork and legally haul you into tax court....and those lawyers cost about $500 per hour....to keep you out of jail.

5. If you owe $40,000 in taxes, the interest and penalties that you now owe are about $120,000 plus the original $40,000.

6. You cannot ever dismiss the taxes you owe by bankruptcy...although everyone thinks they can do this...except of course the IRS knows you cannot and all Federal (yes it's a federal offense - tax evasion so you will get hauled into Federal court) Judges know that you cannot evade your tax liability for the rest of your life.

7. So do you understand that you owe this for the rest of your life and you cannot get rid of your obligation.

Again, the best thing you can do is make an appointment with your nearest IRS office, get a supervisor and an agent for the appointment if available at the best possible time.

8. Leave the retirement account alone for now....you may need that to live on after you get out of jail, and can't get a job anywhere except maybe a fast food company until they check on your police record, because you are a convicted felon.

Answer 4

Very sorry to hear of your tax problems. One good way to start is with a CPA. My mother became harrassed over back taxes that she didn`t know she owed. Seems she had taken money out of her IRA, and they were supposed to withold the taxes. They didn`t so the IRS came after her. The CPA figured out everything, and even wrote a letter to the IRS in behalf of my mother asking that the interest and penalties be forgiven since she had never defaulted on her taxes. Maybe with your medical history this may work for you. If not, they IRS will work with you so that you can pay the taxes out. Good luck, and God bless.

Answer 5

You should defiantly consult a Tax Attorney. Make sure they are qualified to represent you before the IRS. Don't listen to those who said you won't have to liquidate your retirement account. I don't know if they are correct, but this is not an issue to take chances with. Tax debt is generally not discharged in bankruptcy.

Answer 6

You should talk to a professional. There are a few online, but find a local tax attorney to help you. The IRS is entitled to their money, but they can't put you in hardship. You will NOT have to liquidate your retirement plan and you will be put on a payment plan that matches your net worth and income. Good luck.

Answer 7

I agree that you need to find a professional to help you settle this. I don't think you can even get IRS fees discharded with bankruptcy. You need all the help with this you can get. Don't try to go it alone.