Tax Attorney Questions

[bankgirl05]

Has any one ever used one??? My sister thinks she should speak with one, and wants me to come along for clarity. She is just overwhelmed and wants me to be her second set of ears so she can understand what is going on.

Are there certain questions she (we) should ask?
How does the fee/payment usually work?

We have both seen advertisements on TV but I am leery of those types, and told her to find one who is local (to her) that has a good reputation/ties to her area.

I think that she owes 8-12k in back taxes (penalties and late fees etc) but she missed filing a few years!!! So it could be more.(Self employed and kept crappy records, never really payrolling herself etc. Sole Prop, set up under her own SS# for most of the time and then finally under a EIN at my urging the last 2 years she owned her business.) and she had a foeclosure during one of those years, which, if I am understandng, needs to be included as income(???) Her accountant that she used for filing the few random years she did file is MIA (it is rumored that he is ill, and has closed business for an indefinite amount of time)

Uggh, I am trying to help her sort it all out the best that I can, but I have NO idea what to expect, where to start, or what is important and what is not.

 

[DisneyCowgirl]

Has any one ever used one??? My sister thinks she should speak with one, and wants me to come along for clarity. She is just overwhelmed and wants me to be her second set of ears so she can understand what is going on.

Are there certain questions she (we) should ask?
How does the fee/payment usually work?

We have both seen advertisements on TV but I am leery of those types, and told her to find one who is local (to her) that has a good reputation/ties to her area.

I think that she owes 8-12k in back taxes (penalties and late fees etc) but she missed filing a few years!!! So it could be more.(Self employed and kept crappy records, never really payrolling herself etc. Sole Prop, set up under her own SS# for most of the time and then finally under a EIN at my urging the last 2 years she owned her business.) and she had a foeclosure during one of those years, which, if I am understandng, needs to be included as income(???) Her accountant that she used for filing the few random years she did file is MIA (it is rumored that he is ill, and has closed business for an indefinite amount of time)

Uggh, I am trying to help her sort it all out the best that I can, but I have NO idea what to expect, where to start, or what is important and what is not.

She should DEFINITELY be leery of those guys you see on TV. They promise things they absolutely cannot deliver. If they say they can settle with the IRS for amounts significantly less than what is owed, they are lying. That almost never happens. What she needs is someone who can sort through her records, help get her filings up to date, and help set up a payment plan with the IRS. I would confirm prior to agreeing to pay a dime to anyone that they can do all this. Many tax attorneys DO NOT know how to prepare returns. A good CPA would be able to do all this for her.

 

[crisi]

An Enrolled Agent would more likely be better and cheaper.

 

[bankgirl05]

An Enrolled Agent would more likely be better and cheaper.

What is an Enrolled Agent?

Disney Cowgirl, Thank you!!! So they can't actually stop or get them to reduce some of the penalties? I understand the interest, the letter says they can(or maybe says have to) charge interest from the date of the supposed filing, so 4/15 2008, 09, 11,12 etc. Actually, some of those years she was probably entitled to a refund so they could use that to offset any taxes owed for each year she didn't file but I think that the penalties are what are excessive and overwhelming, and we wish they could just reduce some of those!!! For the 1 year filed that it was determined she owed $6000. she now owes almost $9000.The main problem is piecing together the missing years. a lot of her reciepts and records were lost when she moved, she thinks one of the friends helping her move accidently threw away her box of shoeboxes and brown paper bags filing system!!!!

Ugggh!

 

[Momoftwins+1]

First she needs to find a CPA, or an Enrolled Agent to go through all the years she failed to file, tally everything up to see where she stands quick like and then set up a payment plan for the IRS or take the Enrolled Agent with her to an IRS set meeting to see where she stands and what can be done to rectify the situation.

Next in the future...you need to harp on her to file every year whether she likes it or not by April 15 to not continue to pile onto the current situation at hand, and direct her towards an app or a computer program that fits what she needs so she can track and keep herself out of the IRS spotlight for future years. Rule #1...proper tax off top and into an account to cover behind at income tax filing time.

Since she's open to you coming with her, a gentle continual nudge may be received ok from you as well to keep things together better.

 

[bankgirl05]

First she needs to find a CPA, or an Enrolled Agent to go through all the years she failed to file, tally everything up to see where she stands quick like and then set up a payment plan for the IRS or take the Enrolled Agent with her to an IRS set meeting to see where she stands and what can be done to rectify the situation.

Next in the future...you need to harp on her to file every year whether she likes it or not by April 15 to not continue to pile onto the current situation at hand, and direct her towards an app or a computer program that fits what she needs so she can track and keep herself out of the IRS spotlight for future years. Rule #1...proper tax off top and into an account to cover behind at income tax filing time.

Since she's open to you coming with her, a gentle continual nudge may be received ok from you as well to keep things together better.

Thankfully, she gave up being in business for herself. This means future years are a cinch, 1040 and done pretty much. It is just the past missing years that are worrying her.

I am going to pick up her computer tomorrow and try to piece some stuff together from her billing software so we can generalize her income amount and then just use that and go from there. We can't replace reciepts for equipment, supplies etc. so she is prbably going to have more tax than she would have if she had kept it together, she is already resigned to that, and facing the music for her scattered brained book keeping methods. Lesson learned, but like I said, it is the penalties that really worry her.

 

[reagansmommy]

Thankfully, she gave up being in business for herself. This means future years are a cinch, 1040 and done pretty much. It is just the past missing years that are worrying her.

I am going to pick up her computer tomorrow and try to piece some stuff together from her billing software so we can generalize her income amount and then just use that and go from there. We can't replace reciepts for equipment, supplies etc. so she is prbably going to have more tax than she would have if she had kept it together, she is already resigned to that, and facing the music for her scattered brained book keeping methods. Lesson learned, but like I said, it is the penalties that really worry her.

I am a tax attorney. PM me and we can discuss a few things for her to do BEFORE she goes and talks to a tax attorney. Keep her from getting ripped off :-