My friend hasn't pay her taxes for 4 years , now she got letters from IRS with penalties and fees. She got an alcohol problem in that period of time, and she got proof of court for a rehab programm. Will this problem help her with Irs in order to avoid paying this huge amount which is impossible to pay.
2007-05-28 02:45:54 · 6 answers · asked by ginany25 1 in Business & Finance ➔ Taxes ➔ United States
The alcohol problem COULD help her with the penalties and fees. She should either contact a good CPA or lawyer or she could call the Taxpayer Advocates office (the telephone number should be in the telephone book) and see what they tell her as far as how to approach the situation. Major medical problems can be a basis for some relief, but it is not a guarantee of relief.
2007-05-28 03:25:05 · answer #1 · answered by Tater1966 3 · 2⤊ 0⤋
Here's the deal.
There are two branches of the IRS that deal in this area.
1- Audit Division
2- Appeals division.
The Audit Division is out to get as much as they can get.
Period.
The Appeals division has authority to settle tax debts and avoid going to court.
Now a lawyer or CPA will deal with the audit divisiion.
Who youwant to deal with is the appeals division.
How you get to appeals is to file for tax court.
Now as an alternative, there is an IRS Ombudsman office,
that acts as a liason between the public and the IRS
collections division.
The longer you drag this out, the worst it gets.
Get a good CPA to start talking with the IRS. You'll
still get hammered for interest, but maybe able to abate
the penalties.
2007-05-28 07:00:59 · answer #2 · answered by jeffpa 2 · 0⤊ 0⤋
Tell your friend to call the bar association in her state and ask for a list of pro bono or low-cost attorneys. Then she has to call around until she finds one who will see her. Tell her not to give up until she finds one.
Tell her NOT to use one of those lawyers on TV or billboards. Go through the bar.
The IRS will not be easy, but if your friend has a lawyer and is very patient (like 2+ years patient), AND if she is really down and out, then something can be done.
Tell your friend not to do this by herself - must have a lawyer.
2007-05-28 02:56:32 · answer #3 · answered by Anonymous · 0⤊ 1⤋
She might be able to work something out to get some of the interest and fees waived. Might be a little tricky though, since they might feel that if she was competent enough to earn the money in those years, she was competent enough to also pay the taxes.
2007-05-28 03:58:50 · answer #4 · answered by Judy 7 · 0⤊ 1⤋
First she needs to check and see if she earned enough money during thos years to have to file!As for alcoholism as a reason to not file,no it will not! She can apply for a payment schedule to make minimum $25.00 month payments, but interest will be charged to her on her unpaid balance
2007-05-28 02:52:47 · answer #5 · answered by sky4155 2 · 1⤊ 0⤋
She should contact the IRS and explain her circumstances. She might be able to work out a payment plan.
2007-05-28 02:52:35 · answer #6 · answered by RP McMurphy 4 · 1⤊ 1⤋