Tax advice help for family member please - Tilted Forum Project Discussion Community

Xazy · 06-06-2008, 07:03 AM

I have a family member, due to I think partly due to a stroke, and depression has not paid taxes or filed them in years. He really has nothing to his name, except for a few thousand dollars and a car. He has been putting his life back together over the past 19 months, and finally one tax agency caught up with him (for not paying in NY State in 2002 which is ironic since he did not live there, and now has to prove that one false, but he definitely owes other people and it is going to be a big bill). I plan on talking to my accountant but he is out of the country until next week, and would love if anyone has advice/thought, besides yelling at the person for stupidity, since the problem is 10x worse now then it would have been then.

Thank you in advance.

highthief · 06-06-2008, 07:58 AM

Quote:

Originally Posted by Xazy

I have a family member, due to I think partly due to a stroke, and depression has not paid taxes or filed them in years. He really has nothing to his name, except for a few thousand dollars and a car. He has been putting his life back together over the past 19 months, and finally one tax agency caught up with him (for not paying in NY State in 2002 which is ironic since he did not live there, and now has to prove that one false, but he definitely owes other people and it is going to be a big bill). I plan on talking to my accountant but he is out of the country until next week, and would love if anyone has advice/thought, besides yelling at the person for stupidity, since the problem is 10x worse now then it would have been then.

Thank you in advance.

In Canada, if you owe significantly from years past and may face hefty fines or even jail, don't talk to your accountant or the CRA (the equivalent of the IRS in the USA). Talk to your lawyer - reason being everything said to the lawyer is privileged, whereas whatever you tell your accountant is not.

The_Jazz · 06-06-2008, 08:32 AM

Quote:

Originally Posted by highthief

In Canada, if you owe significantly from years past and may face hefty fines or even jail, don't talk to your accountant or the CRA (the equivalent of the IRS in the USA). Talk to your lawyer - reason being everything said to the lawyer is privileged, whereas whatever you tell your accountant is not.

Same goes in the US. And Xazy, I think that your relative needs a lawyer at this point.

ratbastid · 06-06-2008, 11:23 AM

There are a few sorts of hardship exemptions that the IRS allows for people who owe unreasonable amounts of back taxes.

The best one is called an Offer In Compromise, or OIC. Basically that allows you to offer them an amount you'll pay instead of the amount you owe. Could be literally pennies on the dollar. You promise to keep your filings and payments current for five years after that, or the whole things comes back into full effect with no appeal.

He can also set up a payment plan with them and pay things off over time.

A tax accountant can help with these things.

yellowmac · 06-07-2008, 03:56 PM

Yeah, I'd definitely talk to a qualified tax attorney asap. He/She will be most qualified to minimize the damage and financial liability for your family member and get him back on the right track.

At the same time, I'd be wary of people trying to take advantage of this situation and trying to screw you out of some money out of fear.

I'd suggest not cold-calling the first one you see in the yellow pages, and thoroughly asking anyone you know if they have any recommendations or experiences to share.

06-06-2008, 07:03 AM	#1 (permalink)
Xazy People in masks cannot be trusted Location: NYC	Tax advice help for family member please I have a family member, due to I think partly due to a stroke, and depression has not paid taxes or filed them in years. He really has nothing to his name, except for a few thousand dollars and a car. He has been putting his life back together over the past 19 months, and finally one tax agency caught up with him (for not paying in NY State in 2002 which is ironic since he did not live there, and now has to prove that one false, but he definitely owes other people and it is going to be a big bill). I plan on talking to my accountant but he is out of the country until next week, and would love if anyone has advice/thought, besides yelling at the person for stupidity, since the problem is 10x worse now then it would have been then. Thank you in advance.

06-06-2008, 11:23 AM	#4 (permalink)
ratbastid Darth Papa Location: Yonder	There are a few sorts of hardship exemptions that the IRS allows for people who owe unreasonable amounts of back taxes. The best one is called an Offer In Compromise, or OIC. Basically that allows you to offer them an amount you'll pay instead of the amount you owe. Could be literally pennies on the dollar. You promise to keep your filings and payments current for five years after that, or the whole things comes back into full effect with no appeal. He can also set up a payment plan with them and pay things off over time. A tax accountant can help with these things.

06-07-2008, 03:56 PM	#5 (permalink)
yellowmac Insane Location: left coast	Yeah, I'd definitely talk to a qualified tax attorney asap. He/She will be most qualified to minimize the damage and financial liability for your family member and get him back on the right track. At the same time, I'd be wary of people trying to take advantage of this situation and trying to screw you out of some money out of fear. I'd suggest not cold-calling the first one you see in the yellow pages, and thoroughly asking anyone you know if they have any recommendations or experiences to share.