Is there a way to get rid of owing federal tax?

Question

I had small personal business.I used my social security number for tax purposes. My partner has deseased. Now I owe about 260,000 dollarars.Did not file tax returns since 1999. Trying to file chapter 13 . With almost no money. Help. Can federal tax,s be erased. Talked to a attorney once, he said yes you can ,but onyl once in life. My present attorney says no you can not. For more reasons then one I feel I have the wrong person to represent me. I am afraid to change for loosing money already spent.This arrorney does not have my best intrest in mind . He took case Knowing I did not have cash up front.Said he would use property to get paid. Now every thing is cash, of which I don,t have much. Now anyway.I have property in my name and mothers name who passed away reciently and did not leave a will. I have three sisters and a brother. Attorney is going to try to make me executor, then liquidate assets. I don,t know what he is doing until last minute . I a Need Help.

Answer 1

Don't panic. Your lawyer will take all you have if you don't dump him. You can go bankrupt every seven years. Incorporate under a silly name and move the business functions under the corporation. DO NOT get any personal issues involved in the business.

Answer 2

The first attorney was right, at least on paper. The second attorney may well have looked at the facts and concluded that you do not qualify for an Offer in Compromise. You have to come up with 25% up front to even be considered. The IRS will only consider it if it sees no other way of getting its money. All you can do is go into a payment arrangement, if they will accept what you can pay. Those are very expensive ways of getting credit.

In any case, Chapter 13 will not save you from the IRS. They can, potentially take everything you have.

I hope you have filed your 2006 return (or will do so on time). If you do not keep your filings up to date you get no deals from the taxman.

Answer 3

NO! In almost every case you have to pay your federal income tax. Why didn't you file tax returns from 1999? Get real! If you have a business and you make money from that business you must pay federal and sometimes state income taxes. When a person has a business, there are a lot of deductions one can claim and that might help you. Having worked for the IRS, believe me, they know more about you and your business than you think they do. In fact, they have a software program that shows what you made, your costs to run the business and the amount of tax you owe. In a few occasions one can sometimes "make a deal" with your IRS tax representative, otherwise you need to request an installment agreement. If you fail to live up to your agreement, they can and most likely will file income tax fraud in the tax court. If you lose, you will go to jail! Taxes and paying them is what makes this country go. You can't avoid the obvious. Do the right thing and pay what you owe!

Answer 4

Have you filed your bankruptcy yet? If not, what you need to do is sell/liquidate nearly every asset you have, houses, cars (if paid for), extra clothes, jewelry, everything. Each state has it's own limits for bankruptcy. Then take every dime and find a Tax Attorney to take your case. Pay him first and have him use what is left to go to the IRS with an offer and compromise. Tell them you have sold everything you own and this is all you can come up with.

Are you currently working? They may take your offer and set you up on a payment plan. This plan may make you ineligible for chapter 13 as the IRS always takes precedence over anything else.

And keep in mind, they can prosecute you for not filing your taxes, it is called EVASION and is a federal crime. Just ask the first Survivor winner Richard Hatch, he is doing 10 years in federal prison for not claiming his income and paying his taxes.

Right now your priority needs to be the IRS. The rest of your creditors cannot just waltz in and seize everything you own. Quit procrastinating, contact the tax attorney and sell your stuff.

Good luck

Answer 5

Nothing eliminates federal tax debt - not even bankruptcy. Any attorney that tells you different is doing stuff that is illegal or is just stupid and uniformed. If you are unhappy with your current attorney your need to tell him, preferably in writing. And you need to tell him what your specific expectations are ... not just that you are unhappy. For example, you may say, I want you to call me every Monday morning and give me a current status of my case and what your plans are this week on my case.

Answer 6

Half of the taxes owed should be payed by your partners family. That leaves 130,000 you can settle your tax debt for about 1/10 of the amount owed, so about 13,000. I am not sure that you can do any better than that. 13,000 is much better than 260,000 though.

Answer 7

"If we elected Ron Paul & have been given rid of the Federal Reserve & tax, might our Trillion-greenback money owed only disappear?" earnings taxes might nicely be abolished because of the fact all of it is going in direction of our worldwide militia empire - which o.k. may be the writer of all our enemies. a pair of month in the past 1000's of jap human beings have been protesting the yankee militia bases in Tokyo. The money owed would not disappear, yet they might end growing to be. reducing spending by using 60% and reducing taxes by using fifty 5% ability we've small surpluses to place in direction of the debt. "the way libertarians physique it, it is like 'if we end taxing human beings, all our issues disappear! Lalala' You dont think of that 800+ american bases in one hundred thirty countrys create enemies and value one trillion money of recent debt a year? You dont see something incorrect with government theft of individuals wealth? "yet what approximately all that money we owe foreign places borrowers? And the funds deficit? Is that money gonna pop out of skinny air to pay them back?" you think of paying them back comes out of growing to be extra DEBT? tell me the thank you to repay a credit card with 10k debt on it by using charging up 1k on yet another.

Answer 8

If you don't trust your attorney get a new one. You'll lose more in the long run staying with someone you can't trust to be honest & up-front with you.

Answer 9

you need a new attorney. Don't complain so much, it is your fault for not filing for 10 years or for not incorporating.

Answer 10

Yes, pay it you freeloader.