Skip to comments.I will soon be ripped by the IRS and I need serious tax advice.
Posted on 04/18/2014 6:39:07 PM PDT by elahtap
Hi Fellow Freepers,
I am conservative to the core, and have been a long time lurker (8 years +) here, but I was finally spurred to set up an account. I wanted to get some advice. The potential stakes are high and I wanted to post this here because, as a group, you are the smartest people I know. I know my FRiends here will tell me what I need to know
I am a 58 y/o professional with a good job, and my wife had been a stay-at-home mom since our children were born. In mid 2010 we purchased a small business for 80K. She had done some fill-in work there and it looked like a good opportunity, and with both our kids soon to be in college, it would give her a shot a a career.
Here is what happened in the intervening years...
1) The business has tanked and we are coming around to making the decision to sell it and salvage whatever possible of our investment. My wife is a good worker-bee but absolutely lousy at running a business. Plus, after being in "remission" and well-controlled by medication, her bipolar illness has reared its ugly head again. We have lost tens of thousands of dollars, with most of this paid for by 3 withdrawals from IRA accounts.
2) State and Federal income taxes for the business have not been filed other than the first part-year (2010). So we have not even filed for 2011, 2012, and now, 2013. This is primarily due to not being able to afford an accountant to clean up the big mess and file the returns. Sometimes a mess gets so big you just don't know where to start.
3) Our personal income taxes have also not been filed for these same years (2011, 2012, and now 2013). Without the complicating factors (i.e. penalties) we probably didn't owe much (if any) because my deductions were always set up where I got a $500-$1000 refund every year. The primary reason I initially postponed filing was because we didn't have the business returns, and I didn't want to lose the deductions that would come about as a result of the big business losses.
But now we are living in fear that the IRS will come in and seize everything (including a big chunk of my wages, or our home, or retirement funds, etc.) and the snowball (crapball?) will just get larger.
We have always paid our bills and lived financially responsible lives, which means that, emotionally and logistically, we are in uncharted territory without any idea how to find our way out.
We SO want to get this all straightened out, and I had considered visiting the local IRS office and trying to get a friendly agent for a 45 minute sitdown and just throwing myself at their mercy, but I don't want to make it worse by doing this (like my friend who, years ago, accidently crossed into Canada with a handgun in his car and went back to the border to inquire about what he should do).
Quite honestly (and it is very humbling to admit this) we are overwhelmed to the point where we are paralyzed by fear and uncertainty, and we are unable to decide how to fix this.
I am open to criticism, but please understand that beating myself . Believe me when I say we already know we are woefully stupid for ever letting the situation get to this point.
My wife and I really need some educated and helpful advice on how best to begin the process of straightening this out while minimizing any additional damage. I'm counting on my FRiends here for some good solid guidance.
I need to leave the house for a while, so I will try to catch up on posts and answer any relevant questions in a few hours. Thanks, all!
get a tax accountant place to start working on it
Have you been notified that you are being audited or do you simply fear being audited?
I am not a tax professional, but I want you to realize you are a live person that can’t be defined by your monetary class.
Regardless of what happens, please live your life to the fullest and don’t let the IRS define your enjoyment of life.
Beg or borrow the money needed to hire a good tax attorney. That is the best thing you can do. Without it you’re walking into the lions den without a a weapon. You’ll more than make up the cost by what you save.
Find a lawyer.
Find a CPA.
Do not go to the IRS until you are FULLY prepared.
Get a good accounting firm. They will have bookkeeping types that bill at lower rates to sort through all your personal and business paperwork.
If the IRS comes calling, refer them to your accountant. Do NOT throw yourselves at their mercy.
Visit an accountant, explain the situation honestly, and ask their advice. You would do well to visit a few to find one you are comfortable with.
Move now, don’t wait (penalties can worsen, and you can lose opportunities). Time is not on your side.
I agree with the previous poster...bite the bullet and pay a professional to guide you through it. The peace of mind alone will be worth the price.
Get a CPA. Now.
I had a bad situation, and I got it all smoothed over, not by coming to the IRS, but coming to the CPA and *HE* did my talking.
It’s now in a payment schedule, and it’s down from 10k to under 2k.
I'm not an Accountant or an Attorney but from what I have read I believe you are going to need one or the other. There are some good Tax Attorneys but I recommend an Accountant. I hope you have good records and have all pertinent information categorized. If your information is not categorized I recommend that be done first. Know was of no help but want to wish you Good Luck.
What is the structure of the business? s corp, ptn, c corp, sole proprietorship?
Get something in and filed, to be honest, IRS is way overloaded now and you may slip through the cracks. Don’t work about perfection. The good people in IRS have left (people who think and know) and it is run by computers now.
Welcome to FR
For now... if you have any money get a tax attorney and an accountant.
Go over the books, see what profit/losses you have incurred.
File you amended taxes for the previous years.
It may not be as bad as you think, or it may be worse. you won’t know until you finish the paperwork.
Get right with it now before they start levying your bank accounts and seizing your real property.
Yes go to a CPA immediately. The IRS considers failure to file, if you owe money as much more serious than if you do not owe anything.
Yep, that will do it.
Get thee a tax attorney.
I have a local inexpensive CPA who is retired and fights for his clients. He has seen me through tough situations. I wish I had hired someone years ago.
You need a very good tax attorney, preferably one who has a CPA as well as a JD.
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