Have a Tax Question? Ask a Tax Expert
First, I should tell you that, in my 28 years of experience, people ALWAYS do much better when they get to the IRS before the IRS gets to them
we just have no ideal how to go forward, we are both in our 50's and know our best earning years are behind us.
Don't "awfulize" (I'm not making light) it's just that most of the horror stories aren't true, and changes are that if you start putting things together so you can get something to them before they
a few things:
we went to a small tax firm that said they could talk to the irs but they basically did nothing after collecting $2000 from us
(1) was she always profitable? IT profits that are txed, not gross revenue
(2) Did you know that if you end up owing less than $50,000 in most cases you can set up an installment agreementonline?
yes, she is a graphic designer with very little overhead except software and laptop
it is more then $50,000 I believe
OK lets start with bvallparking how much you might owe.... di you file at all?
ok, there are two things that come to mind intuitively
(1) an installment plan (you can still submit one, it'll just need t be done with paper)
no we were too scare. I work for a company and always paid the most for my w2 but I thought I would draw attention to her if I filed separately
(2) there is something called an offerncompromise
we have $30000 but I believe we own about $85000
OK take a minute and look at this link: from there: (I'll give you the full link in a minute)
An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability, or doing so creates a financial hardship. We consider your unique set of facts and circumstances:
We generally approve an offer in compromise when the amount offered represents the most we can expect to collect within a reasonable period of time. Explore all other payment options before submitting an offer in compromise. The Offer in Compromise program is not for everyone. If you hire a tax professional to help you file an offer, be sure to check his or her qualifications.
and now see this:
IR-2012-53, May 21, 2012WASHINGTON — The Internal Revenue Service today announced another expansion of its "Fresh Start" initiative by offering more flexible terms to its Offer in Compromise (OIC) program that will enable some of the most financially distressed taxpayers to clear up their tax problems and in many cases more quickly than in the past."This phase of Fresh Start will assist some taxpayers who have faced the most financial hardship in recent years," said IRS Commissioner Doug Shulman. "It is part of our multiyear effort to help taxpayers who are struggling to make ends meet."
Today’s announcement focuses on the financial analysis used to determine which taxpayers qualify for an OIC. This announcement also enables some taxpayers to resolve their tax problems in as little as two years compared to four or five years in the past.
In certain circumstances, the changes announced today include:
ok, I do want to ask how do you hire a tax professional we can trust the last one didn't even give us our w4s back when he said he was putting together our back taxes
first, here's a link to that last one:
You're in Wisconsin?
You really DO have to be careful, as you've learned...
One of the safes routes to go is to use a Tax attorney
there's a category called EA (Enrolled Agent) and they really are very knowledgable, but that's als where there's been some abuse
THe IDEAL is a tax attorney, who is CPA and EA ... THese individuals have a lot more to nloe AND the training is just such that there's a descipline there
sorry for the typo (more to LOSE)
hang on a sec and let me look at something:
ok Thank so much .....we feel like we have been waiting for the ax to fall for the past 8 years
and it is hard on our marriage, like we don't deserve to be happy
First of all ... you are not alone
secondly, once you take that first step with someone that's competent (and you've already gained some experience there) you'll start to feel the relief
I will tel you this Don't go with someone who wont give you a fulle picture of what to expect
and what the range of possibilities are
Nex. I think your best bet is to use fnd -law or the WI BAR listings to look for specialties and o some phone interview.... I think you'll start t see sme patterns emerge
now,,, juuust a second here
http://www.attorneys.com/tax/wisconsin/ ... what I'm giving you here is just a starting place... you've been out there for 8 years .... make talking to some of these folks a project ... with an end in mind
I will start that search for someone that is a tax lawyer, cpa , and ea.
THis is a very good one: http://lawyers.findlaw.com/lawyer/practicestate/taxation-law/wisconsin
oh Thank you
just one more, OK?
Going on this site is the best thing I have done in the past 5 years already
Use this one to check on credentials and complaints http://www.wisbar.org/Directories/LawyerSearch/Pages/Lawyer-Search.aspx
it is the truth ....fear takes away all happiness
soo soo true and the shame is there ARE options
I will use all 3 links and will research every day to get this moving forward
you might have to bite the bullet a bit, or given that you have bsomething to work with you mayb e able to make an acceptable offer
I can only hope
I would be happy to be flat broke but free of this burden
but start with the interview process as a phase.... AND ... wait to take action until you've met with atleast 4 or five so you can kind of categorize
does NOT have to happen that wsy ... just be proactive
I will be from now on
now that I have plan and hope
three weeks emms untiutively right
3 weeks? should that be the interview stage
take that tiem to do as many phone interviews as you can and resist the urge to go with the first one that makes you feel good
ok I understand
if it sounds to good to be true, it usually is
art more than science.... but if you haven't hear from them in this amount of time ( AND you can even document if it did pop up that you're looking for help)....
you'll be better able to pull that trigger and sit down and engage with someone
I DON'T want to give you pie in the sky ... but if you get to them first you're much more in the driver's seat
I hope this has helpd
I know it will be hard but it is a road back
You have helped more in 20mins then anyone has helped in 7 years
.... AND if you want to get back to me just say "For Lane Only" at the beginning of your questions
THank YOU ... my seratonin levels just sent up
Thank you, XXXXX XXXXX
bless you sir
by the way, the links here will stay active... just bookmark and come back here if you want to look at the OIC stiff agains
THan you so much
Also, if you want to copy and paste this ... this address will being you right back here: http://www.justanswer.com/tax/7w804-wife-owe-back-taxes-freelance-business.html
I am doing so now
Thank you again.
Great ... By the way in another life MANY moons ago, I spent a summer in Madison Beautiful place
it is a beautiful place my wife when to school there
I will get started putting a plan together for my search and interviews
Believe it or not was a musucian years ago marched with the scouts (if that means anything to you)
If this HAS helped, I would appreciate a feedback rating of 3 (OK) or better … That's the only way they will pay us here.
HOWEVER, if you need more on this, PLEASE COME BACK here, so you won't be charged for another question.
you are excellent