owed to the irs

[valk]

What is the name of your state? Right now it is Arizona
but these taxes were from Georgia and South Carolina, then last two years from New york and Illinois
Actually i have a couple of questions, My present husband owed back taxes from 1999 till present. We had an accountant just finish them which cost us $8000.00 . The amount we owed has been offset from 1999 till present from owing $42,000.00 to $20,000.00.
What is the basic that a tax lawyer chages to get these taxes down lower and it is a good idea to get a tax lawyer?
Also My husband at the time all of this was owed was married to his ex wife and filed a joint return of which his ex just filed an innocent spouse relief (which wasn't decided on yet) If we are liable to pay this And she wasn't granted relief from this, will she be required as well to make payments on this? and not just her tax returns?
The last question : We were married in December of 2004 If we have to make payments to the irs, can they take my check also in consideration as household income? To pay those back taxes?
And also if they can and say i am not working now when amounts are established to pay, but then i get a job and work do we have to file statements that we have an increased household income? Even though those were not my taxes but now i am married to him?
Thank you for any information i can get!What is the name of your state?

 

[seniorjudge]

What is the name of your state? Right now it is Arizona
but these taxes were from Georgia and South Carolina, then last two years from New york and Illinois
Actually i have a couple of questions, My present husband owed back taxes from 1999 till present. We had an accountant just finish them which cost us $8000.00 . The amount we owed has been offset from 1999 till present from owing $42,000.00 to $20,000.00.
What is the basic that a tax lawyer chages to get these taxes down lower and it is a good idea to get a tax lawyer?
Also My husband at the time all of this was owed was married to his ex wife and filed a joint return of which his ex just filed an innocent spouse relief (which wasn't decided on yet) If we are liable to pay this And she wasn't granted relief from this, will she be required as well to make payments on this? and not just her tax returns?
The last question : We were married in December of 2004 If we have to make payments to the irs, can they take my check also in consideration as household income? To pay those back taxes?
And also if they can and say i am not working now when amounts are established to pay, but then i get a job and work do we have to file statements that we have an increased household income? Even though those were not my taxes but now i am married to him?
Thank you for any information i can get!What is the name of your state?

You have a very complicated situation but the solution is two words: lawyer and money.

Get those two things and everything should turn out all right.

The IRS actually prefers to negotiate nowadays and not throw you in jail. Having a lawyer and money in hand will show the IRS that you are serious about this.

 

[LdiJ]

What is the name of your state? Right now it is Arizona
but these taxes were from Georgia and South Carolina, then last two years from New york and Illinois
Actually i have a couple of questions, My present husband owed back taxes from 1999 till present. We had an accountant just finish them which cost us $8000.00 . The amount we owed has been offset from 1999 till present from owing $42,000.00 to $20,000.00.
What is the basic that a tax lawyer chages to get these taxes down lower and it is a good idea to get a tax lawyer?
Also My husband at the time all of this was owed was married to his ex wife and filed a joint return of which his ex just filed an innocent spouse relief (which wasn't decided on yet) If we are liable to pay this And she wasn't granted relief from this, will she be required as well to make payments on this? and not just her tax returns?
The last question : We were married in December of 2004 If we have to make payments to the irs, can they take my check also in consideration as household income? To pay those back taxes?
And also if they can and say i am not working now when amounts are established to pay, but then i get a job and work do we have to file statements that we have an increased household income? Even though those were not my taxes but now i am married to him?
Thank you for any information i can get!What is the name of your state?

Your explanation was not very clear.

Are you saying that an accountant charged you 8000.00 to prepare tax returns for 1999 through 2005? Did those returns include business returns? If not, you got ripped off. Even with Schedules Cs most firms wouldn't have charged you more than 2500.00 or so....and mine would have charged you less than that.

Are you also saying that the original tax debt started at 42,000 and your husband has paid enough (through tax refunds etc.) to bring the balance down to 20,000?

If his ex is successfully in winning the innocent spouse relief then your husband will be held solely responsible for the tax debt. If she is not, then she will be equally responsible, however odds are that they won't do more than continue to take her refund...unless she has assets upon which they can place liens.

The only way to protect your salary/assets is to not have any joint accounts or joint assets (cars, houses etc.)...keep your stuff in your name only. You should also file an innocent spouse claim as well.

 

[Snipes5]

The new spouse should file an INJURED spouse form, not an innocent spouse form.

Snipes

 

[valk]

explanation clearer

Your explanation was not very clear.

Are you saying that an accountant charged you 8000.00 to prepare tax returns for 1999 through 2005? Did those returns include business returns? If not, you got ripped off. Even with Schedules Cs most firms wouldn't have charged you more than 2500.00 or so....and mine would have charged you less than that.

Are you also saying that the original tax debt started at 42,000 and your husband has paid enough (through tax refunds etc.) to bring the balance down to 20,000?

If his ex is successfully in winning the innocent spouse relief then your husband will be held solely responsible for the tax debt. If she is not, then she will be equally responsible, however odds are that they won't do more than continue to take her refund...unless she has assets upon which they can place liens.

The only way to protect your salary/assets is to not have any joint accounts or joint assets (cars, houses etc.)...keep your stuff in your name only. You should also file an innocent spouse claim as well.

Yes, the Accountant charged us $8165.00 for doing those tax returns and he took a whole year to do them, I brought them to him last Februaury or march!!! Actually the 1999 taxes were filed or done. My husband had a franchise that never made a profit and he lost everything, his house, his savings of $100,000.00, his
stocks. He lost it all, and anything that he had left went to alimony and child support payments.
I took everything in order to the accountant, the year 2000 is when the business closed and he lost everything. I really was under the impression that we wouldn't have to pay anything since the business never made a dime and he lost everything.

As far as original tax debt, yes, that was the original amount that they said was owed, then the accountant told us that it was offset by the loss and a refund of $15,000.00 in 2000 and another refund in 2003 and 2004 for the remainder. I know that his ex wifes tax returns were kept by the IRS but that wasn't taken into consideration by our accountant.

So for 2005 I should file married filing seperate? and fill out a innocent spouse release?
I can understand why i would be exempt from paying his taxes but she was fully aware of everything and she didn't mind one bit spending all his money and taking it but when it comes to paying it back she is innocent and he gets stuck paying everything? I think that stinks!
I mean no matter which way we go, I will still end up paying this back because i am married to the man!! But she gets off scott free after she is the one who benefitted from all of the money originally>? That really stinks, i think she should have to pay just the same as him since she enjoyed everything in fact more than him.

In someone elses answer on these questions he said the two things i needed was a lawyer and money!!
That is the one thing that we don't have!!! After having a business that had failed and you go from BMW's to BROKE COMPLETELY and wondering where you will find work, you lose your home, and sell off most of your stuff to survive till the money comes in again, you owe back phone, credit cards, etc.... you credit is wrecked, you certainly don't break even for a long time let alone have any money to do anything with.
Together we have 7 kids, of which 4 are grown, my husband paid $30,000.00 in alimony for his ex wife the first year, and $24,000.00 the next year. Only there was no court order yet and my husband made the mistake of putting on there child support and not alimony he gave her. So we can't claim it as alimony.
WE don't have but $200.00 in the bank, i can't really pay the taxes, let alone $8000.00 in accountant fees.
And also my husband has a lien on his credit from S. Carolina for inheritance and death tax from his father. In 2002 that amount went from like $4000 he owed to $10,000.00 so i don't know what it is since 2002 till now. but with interest and penalties i am sure it is more like $15 or 16,000.00. ARGH!
but all of the money that he got from all of this stuff went into his business and was lost, all of it.
That is why i couldn't believe that he had to pay taxes of $42,000.00 when all the money was claimed as a loss. an it seems as though the only money he got back in 2000 was $15,000.00. I know that he lost at least $60,000.00 that went to payroll out of his savings alone.
He sold his house and gave up his stocks to pay off the SBA loan. Without a profit all his savings went to pay payroll, and other bills.
I actually question this accountants abilities as well.
Thank you for the answers you gave me, I appreciate it!

 

[LdiJ]

Yes, the Accountant charged us $8165.00 for doing those tax returns and he took a whole year to do them, I brought them to him last Februaury or march!!! Actually the 1999 taxes were filed or done. My husband had a franchise that never made a profit and he lost everything, his house, his savings of $100,000.00, his
stocks. He lost it all, and anything that he had left went to alimony and child support payments.
I took everything in order to the accountant, the year 2000 is when the business closed and he lost everything. I really was under the impression that we wouldn't have to pay anything since the business never made a dime and he lost everything.

As far as original tax debt, yes, that was the original amount that they said was owed, then the accountant told us that it was offset by the loss and a refund of $15,000.00 in 2000 and another refund in 2003 and 2004 for the remainder. I know that his ex wifes tax returns were kept by the IRS but that wasn't taken into consideration by our accountant.

So for 2005 I should file married filing seperate? and fill out a innocent spouse release?
I can understand why i would be exempt from paying his taxes but she was fully aware of everything and she didn't mind one bit spending all his money and taking it but when it comes to paying it back she is innocent and he gets stuck paying everything? I think that stinks!
I mean no matter which way we go, I will still end up paying this back because i am married to the man!! But she gets off scott free after she is the one who benefitted from all of the money originally>? That really stinks, i think she should have to pay just the same as him since she enjoyed everything in fact more than him.

In someone elses answer on these questions he said the two things i needed was a lawyer and money!!
That is the one thing that we don't have!!! After having a business that had failed and you go from BMW's to BROKE COMPLETELY and wondering where you will find work, you lose your home, and sell off most of your stuff to survive till the money comes in again, you owe back phone, credit cards, etc.... you credit is wrecked, you certainly don't break even for a long time let alone have any money to do anything with.
Together we have 7 kids, of which 4 are grown, my husband paid $30,000.00 in alimony for his ex wife the first year, and $24,000.00 the next year. Only there was no court order yet and my husband made the mistake of putting on there child support and not alimony he gave her. So we can't claim it as alimony.
WE don't have but $200.00 in the bank, i can't really pay the taxes, let alone $8000.00 in accountant fees.
And also my husband has a lien on his credit from S. Carolina for inheritance and death tax from his father. In 2002 that amount went from like $4000 he owed to $10,000.00 so i don't know what it is since 2002 till now. but with interest and penalties i am sure it is more like $15 or 16,000.00. ARGH!
but all of the money that he got from all of this stuff went into his business and was lost, all of it.
That is why i couldn't believe that he had to pay taxes of $42,000.00 when all the money was claimed as a loss. an it seems as though the only money he got back in 2000 was $15,000.00. I know that he lost at least $60,000.00 that went to payroll out of his savings alone.
He sold his house and gave up his stocks to pay off the SBA loan. Without a profit all his savings went to pay payroll, and other bills.
I actually question this accountants abilities as well.
Thank you for the answers you gave me, I appreciate it!

Actually, I meant file an innocent spouse form if you had any involvement in any of the tax years that caused a problem. Snipes was correct that as far as your future refunds are concerned, you should file an injurred spouse form. That way the two of you can file jointly, but your share of the refund won't be taken by the IRS.

I am even more confused. If your husband's business never made a profit, then where did that original 42k of tax debt come from?

 

[Snipes5]

I'll take a stab at it... um, payroll taxes?

You REALLY need a tax professional to help you. It is difficult to decipher what actually happened from your posts. You need to sit with someone who can sort this out for you and get it taken care of.

As for the tax guy that had your stuff for a YEAR, and charged you $8000, turn his a** in to the IRS!

Snipes

 

[LdiJ]

I'll take a stab at it... um, payroll taxes?

That's probably it....

You REALLY need a tax professional to help you. It is difficult to decipher what actually happened from your posts. You need to sit with someone who can sort this out for you and get it taken care of.

As for the tax guy that had your stuff for a YEAR, and charged you $8000, turn his a** in to the IRS!

Snipes

I echo that. If you haven't mailed the returns the 8k guy did for you, you might even want to let another professional look them over.

 

[valk]

thankyou

ok, thanks for all the advice, I think that about the only thing I can do is go down to the IRS office and work directly with them because i can't afford another accountant!!!
Do you know if I can negotiate a price reduction with the IRS directly without a tax lawyer?
I am kinda stuck for money!

Also I will ask my husband today how they came up with owing the original $42,000.00 and let you know tomorrow where that came from..

Thanks again for all the help!

 

[valk]

the $42,000.00

I asked my husband where that amount came from and he said that he had paycheck do the payroll so he kept up with the taxes on the business, it was the original money that he put into opening the company. His father died and left him some money, That money went towards opening the business so he cashed in kemper funds, stocks and stuff, and it was the taxes on that, that he owed apparently.
I know that South Carolina is where he lived at the time he got the inheretance, they wanted their share of the death tax and that is where he owed that which is now over $10,000.00 , I am not sure if he paid north Carolina since that is where his father lived and died, and then he had the federal on that death tax.

I don't know , i can only guess that he figured he needed all the money to start the business and once the profits that it promised started coming in then he would pay that tax. but at the time he opened the franchise or bought into it, the franchise filed chapter 11? and he also found out that the books were fixed, what he saw was a combination of the guys two stores that he owned and not just the one he bought into. So it never made half the profits that it claimed too.

Knowing that .... what kind of a difference does that make if any? Does it make matters worst?
I have never been in trouble with taxes myself I don't really understand all the rules and what you can do about it, I am kinda left on my own trying to deal with this since my husband doesn't feel well alot of the time, he has ankelosin spondelitis, three forms of arthritis and his body hurts alot, he wears out easy and works every day still, so i have taken this on, and I would appreciate any help that i could get on what to do and if it is possible to get the amount lowered.
I do appreciate all your answers!!!

 

[Snipes5]

This has already been explained to you. I will say it slowly, one more time.

Take...Your...Paperwork... And...See...A...COMPETENT...Attorney...Or...Enrolled...Agent.

You simply cannot do this yourself. It is very complex, and I don't think you even completely understand it.

There are several different tax issues going on, involving both federal and state, and it sounds to me as though if the stocks and so forth were sold essentially at the time of inheritance, there should have been little to no federal tax at all.

If you are not willing to do as you have been told here, then by all means, just go ahead and pay all the tax both state and fed say you owe. That would be foolish, but no more or less foolish than it is for you to try to do this yourself.

Ever hear of legal aid or the office of the Taxpayer Advocate?

Snipes

 

[valk]

This has already been explained to you. I will say it slowly, one more time.

Take...Your...Paperwork... And...See...A...COMPETENT...Attorney...Or...Enrolled...Agent.

You simply cannot do this yourself. It is very complex, and I don't think you even completely understand it.

There are several different tax issues going on, involving both federal and state, and it sounds to me as though if the stocks and so forth were sold essentially at the time of inheritance, there should have been little to no federal tax at all.

If you are not willing to do as you have been told here, then by all means, just go ahead and pay all the tax both state and fed say you owe. That would be foolish, but no more or less foolish than it is for you to try to do this yourself.

Ever hear of legal aid or the office of the Taxpayer Advocate?

Snipes

I understand what you told me, but i also said that i would explain now where the $42,000.00 came from and I didn't know if since it was different then i originally thought, it would make a difference in how I started to handle this.
But thank you for your advice

 

[LdiJ]

I understand what you told me, but i also said that i would explain now where the $42,000.00 came from and I didn't know if since it was different then i originally thought, it would make a difference in how I started to handle this.
But thank you for your advice

I agree in part with Snipes. If the inheritance was stocks etc., there should have been very little tax, if any when he cashed them out.

However, if any of it was IRA or 401K money, then it makes more sense that he could owe 42k on it.

However, again, I agree with Snipes that the additional state issues make things much more complicated.

My real concern is that you paid 8k for perhaps an incompetent accountant. Since a business, and business taxes were involved the 8k might not be entirely out of line (although still high in my opinion), but the fact that it took him a year to handle it absolutely WAS.

If you can't afford to have have another tax professional review things, then you could be on the verge of spending a whole lot of money that your husband doesn't really owe.

Wait until after April 15th....when things dramatically slow down, and have another professional (like an enrolled agent) review the returns.

The most important return to review is the return for the year when he cashed in his inheritance. If nothing else, have that return reviewed or reworked by another tax professional.