I have not filed taxes for 2004, 2005, and 2006. Recieved letter from IRS for change of address. I was scared not to file and the outcome was not filing for 3 years. Did estimated tax return for all 3 years and will owe approximately 12K total. Now the problem is, should I contact the IRS and work something out? Will IRS take total tax owed and do a combined payment plan? Should I contact one of those commericals to help? I would not be accepted for a offer in compromise, but want to get everything settle with IRS immediately so I can sleep at night. Please advise of what I should do first. What average fees would I expect to pay if I hired a tax attorney. I just really want to make things right but need direction on what I should do first.
2007-08-20 05:16:24 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
First cal the IRS ask them to make you a payment plan for 25.oo monthly (you can do this). Then after a few months of paying go to a company that will call the IRS and reduce your payment if you can close with a full payment. you can save thousands with the right attorney firm. Have the firm proof their the right horse you can ride. Remember to ask their fees first.
2007-08-21 15:20:40 · answer #1 · answered by Jovesash 4 · 0⤊ 0⤋
You should add about 50% to the tax due for accumulated penalties and interest. IRS will set up an installment agreement if you can pay the liability within five years and pay your current taxes. If you have not prepaid the appropriate amount of 2007 tax, either by withholding or estimated tax payments, that is the first thing you need to do. If you have the ability to borrow the money and repay a commercial loan, that is the way to go because with the amount you will owe, IRS will file a Notice of Federal Tax Lien which will make your credit rating take a major hit.
2007-08-20 06:06:23 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Do not call any of the companies that advertise on TV. They charge a lot and don't do much of anything for you.
File the returns and enter in to an installment agreement.
You do not need a tax attorney. Find a competent EA or CPA and get the returns filed. The cost will vary based on the complexity of the return.
2007-08-20 06:03:43 · answer #3 · answered by Wayne Z 7 · 0⤊ 0⤋
They'll do a combined payment plan for the three years, but you are going to owe not only the tax amount but also some penalties and interest. Don't call one of the commercials you see on TV - they'll just take some more of your money, and you owe enough already.
You could see a CPA and have him or her check over the returns that you made out before you send them in.
Good luck.
2007-08-20 05:28:55 · answer #4 · answered by Judy 7 · 1⤊ 0⤋
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2016-05-05 06:36:38 · answer #5 · answered by L. 1 · 0⤊ 0⤋