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I'm sorry to hear about your tax debt. I know it's a difficult and stressful time dealing with this
However, you should write a letter and request an abatement of penalties. If you have a good reason for not filing the returns, such as being ill, then the penalties could be abated
It doesn't hurt to ask. The worst that can happen is your request for abatement is denied.
If you still must pay the penalties, then the IRS will allow you to set up a payment plan to allow you to spread the tax over a period of time.
The problem is that the company is in my daughter's name, so they are going to come after her to pay up, right ?
Unfortunately, it would be her responsibility according to them
but you can always set up payment plans and you can pay the debt
will she have to be involved in setting up the plan ?
she might have to sign the installment agreement...but you could even have the payments drafted from your account
will they access the payment amount based on her income ?
Yes, it would be based on her income...but if you could afford a payment larger than what her income affords, they won't prevent that.
I also read that if has been 3 years since the corp has filed a return and no request has been made by the IRS, There is a possibility they will dismiss the tax if the company is no longer in business. Is that true?
Unfortunately, the IRS is not that forgiving. If tax or penalties is owed, they typically will pursue it
Ok, so your advise is to first file for an abatement, then if denied, try to setup a payment plan, right ?
That is correct. That's the best you can do if they don't forgive the penalties
Is it possible that they would consider a compromise for a lessor amount ?
Yes, but it's very rare...only when you have a lump sum and they do not believe that they could collect more than that lump sum over time.
So, if you offered say $8,000 they would have to look at your case and say to themselves there's no way we would get $8,000 even over time.
beings that she is only 25 years old, that is probably unlikely, right ?
I can't say ... but I do know that the offers in compromise are rarely accepted.
ok, thanks for your help
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