He hasn't filed since like 2000. The penalties and interests are climbing. What should he do to correct his predictament? If he sees a lawyer can the amount somehow get reduced?
2007-01-10 01:20:05 · 6 answers · asked by ? 3 in Business & Finance ➔ Taxes ➔ United States
There are tax lawyers that can help, but if he doesn't do something quick it will catch up and make his life miserable.
2007-01-10 01:23:57 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Doubtful that the amount will get reduced. He should see a tax expert though, not a lawyer. He can take out a loan from his bank if he likes and just make payments to the bank so that no more interest or penalties accumulate.
2007-01-10 01:24:47 · answer #2 · answered by Drew P 4 · 0⤊ 1⤋
1) Get the returns filed. The IRS will not accept an "Offer In Compromise" if there are any returns outstanding.
2) Base on his current financial situation, he "may" qualify for an Offer in Compromise. Offers are based on what assets he currently owns and what his future earning potential is. Most (85+%) offers are rejected by the IRS and it is a rather long process.
Do not call one of the "pennies on the dollar" settlement places that advertises on TV and radio. Go see a CPA or EA now and have him get started.
2007-01-10 01:28:29 · answer #3 · answered by Wayne Z 7 · 2⤊ 0⤋
Unless he has actually done the returns for 2000 - 2006 then he can't know how much he owes. It is premature to even talk about reducing taxes.
1. Prepare returns for 2000-2006
2. File returns for 2000-2006
3. Pay the tax or apply for an installment agreement
He can go to an attorney but there are thousands of tax preparers who can prepare these returns for him.
2007-01-10 01:46:46 · answer #4 · answered by ninasgramma 7 · 2⤊ 0⤋
He can call the IRS himself and talk with them. I was only 2 years behind and they removed all my penalties. He must keep to his payment arrangements otherwise they will cancel the deal. They were very nice about it. Tell him do not be rude if he wants some of that removed.
If he doesn't get anywhere then yes see a lawyer.
2007-01-10 01:26:43 · answer #5 · answered by Anonymous · 1⤊ 1⤋
call a tax expert now. they can make a deal with the irs and save u 50 to 75 %.no kidding..My friend owded them 10,000 dollars and his tax guy setteled for 2500.. dont call them youself...
2007-01-10 01:30:07 · answer #6 · answered by Anonymous · 1⤊ 0⤋