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Tax question regarding unpaid taxes
Posted on 1/1/15 at 6:56 pm
Posted on 1/1/15 at 6:56 pm
My BIL had a sales job and didn't pay his taxes...he hasn't filed last year and a family friend whose an accountant has looked at his taxes and said he owes 14k not counting penalties and fees...
He doesn't have the money so will the IRS work with him in terms of making payments?
I am just curious how these things work.
He doesn't have the money so will the IRS work with him in terms of making payments?
I am just curious how these things work.
3
Posted on 1/1/15 at 7:37 pm to thekid
HE should have a CPA or Enrolled agent or Tax atty represent him- ASAP- they will work with IRS for the best deal and IRS will set him up on a payment plan to pay the taxes back
Not paying his taxes is serious and best if he has someone else represent him. They will know what to say, what not to say and possibly negotiate some of the penalties, interest etc
Not paying his taxes is serious and best if he has someone else represent him. They will know what to say, what not to say and possibly negotiate some of the penalties, interest etc
Posted on 1/1/15 at 9:22 pm to 756
Even worse than not paying them is not filing. Not filing gets you in deep water.
Posted on 1/1/15 at 9:54 pm to thekid
quote:
My BIL had a sales job and didn't pay his taxes...he hasn't filed last year and a family friend whose an accountant has looked at his taxes and said he owes 14k not counting penalties and fees...
Not that I would know anything about any of this, but first things first, file. If you consider it a lot of money, get a CPA or tax attorney to represent him. The IRS will allow payment in installments; however, they will extend the penalty and interest over the payments IIRC.
Posted on 1/1/15 at 10:21 pm to thekid
Not paying your taxes is bad... not filing your tax return is illegal.
They will work with him, especially if this is his first issue with owing. Get the return filed, and he can set up an installment plan and get 5-6 years to pay off if he needs that long. There is a small fee to set it up. I would also say he should do automatic payments as missing a payment can cause collection action.
Interest and late payment penalties will continue to accrus.
Does he have a good excuse for the late filing? What's going to hurt him is the late filing penalty - could be as high as 25 percent. If he has a legitimate excuse and he's been in compliance until now, he might be able to get the penalties waived.
Also remember depending on what state he is in... he may owe state taxes as well. Also, we are now in 2015... is he going to owe a bunch for 2014 as well?
They will work with him, especially if this is his first issue with owing. Get the return filed, and he can set up an installment plan and get 5-6 years to pay off if he needs that long. There is a small fee to set it up. I would also say he should do automatic payments as missing a payment can cause collection action.
Interest and late payment penalties will continue to accrus.
Does he have a good excuse for the late filing? What's going to hurt him is the late filing penalty - could be as high as 25 percent. If he has a legitimate excuse and he's been in compliance until now, he might be able to get the penalties waived.
Also remember depending on what state he is in... he may owe state taxes as well. Also, we are now in 2015... is he going to owe a bunch for 2014 as well?
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