I know someone who is having problems with them.. just recently she got a notice from her employer stating that they would be taking 25% of her paycheck based on something from the State Franchise Board After asking a bit more questions, I found out because of her bad relationship with her husband, they have had problems with taxes and have liens placed on her house as well.. now the IRS/State Franchise Board, etc. are taking money from her at work.. the thing is, they are claiming she owes a TON more money than she really does.. but she doesn't have any of the w2's or wahtever the forms are to claim anything against them.. Also - she requested these copies from the state and they said the records are too old and they don't have them either.. Can anyone help??? What are her options?? I really want ot help but don't know where to start.. I remember Bill B had mentioned something about the IRS being a big CA.. and you can dispute debts and go from there.. and have them prove/validation the amount they say you owe since they are all approximations anyway.. but can anyone help??
Hmmm...I don't know, but there is something about being an innocent spouse or something like that...can't think of the accurate term. Its where one spouse does something fraudulent with taxes or doesn't pay or something and the other spouse doesn't know about it. My boss had a case like that a while back. He lost and she is now in prison, but that's not my point....lol. It may be something to look into for her. I just don't happen to know much about it. L
she is talking about the irs injured spouse for, but that is mainly for people who owe back child support or student loans and file joint returns. Are they still married, is he working... she can request copies of all paperwork, how can they say she owes them money if they don't have proof of the w2's etc... they must have either an audit process or an appeals process , have her check and see. sometimes it helps to have a local elected official, congressman or state rep help with this type of issue. have her call hers, ask for constituent services.
The problem is a bit complex.. they are still married, and living in the same household.. but they consider themselves 'separated'. For the years in question, the taxes were never filed.. they owned a small business together. She just wants to get her name cleared and liens off her part and the government from taking away income from what she makes because its very little in the first place. What can she do? The IRS claims she owes $10-20k or something ridiculous.. the thing is, she can't file because she doesn't have the documents.. and when she requested them from the state, they said the records are too old.. so basically she is getting stiffed. I don't think she wants to try and put her husband behind bars or anything.. they don't really even talk now as far as my understanding.. but what she does want is to at least get her name and records cleared because it's getting dragged through more stuff because of her spouse. What are her options? Is there a way to make the IRS prove she owes that much? Basically they are just approximating whatever the hell value they want and saying she owes them that.. and won't stop until she pays it.
They owned the small business together JOINTY?? If they did and never filed taxes, I think she is in for a heck of alot of trouble Are they also going after him?? Or does he have no wages to garnish??
the IRS probably filed returns for her based on what they estimated her income and expense to be. She can request those document. She can contact the IRS for back w2 but should document request in writing.... how many years ago was this. I had a situation where no taxed were filed for five years, but was able to get w2 and copies of returns from irs so even if no w2 is available she can get copies of returns. she can also request audit for liablity so she can see how much is tax liability and how much is interest and penalty. She may be able to negotiate an offer in compromise , which settles tax liabilities for pennies on the dollar. She can check the web for assistance on this. she should request her bank records for the years in question also, to assist her in recreating what she can for deductions etc.
Wow, thanks for the reply.. the tax years in question I believe are 87-89? So it's quite some time ago.. I also told her to keep copies of the letter she sent. She did this.. and she also has a copy of the letter they replied with saying that they have no copies of the returns available. How does the audit liability work? How can she settle the tax liability? Does this basically clear the lien? Is it like settling it for less? There is no way she could really owe $20k or whateer outrageous amount they are trying to collect from her.. She doesn't really use the computer.. but I am a good friend of hers and am trying to help her out. How would the bank records help her out? Are you saying that she should request from the bank herself or request the IRS to provide what they are using? What topics do I search for on the web regarding this type of stuf? Are tehre msg boards for help on this? Thanks again for your reply..
Wait a minute I thought the IRS was only allowed to go back 7 years?? A friend of mine does carpentry under the table and one of his clients claimed the work on his house (that my friend did) on his taxes. Now he has been getting paid under the table for at least 15 years and when the IRS nailed him, they said they were only allowed to go back 7 years. Are the leins currently on the house/business? Did they get audited? Did the IRS get a judgement? I'm certainly no IRS/lien expert, but my boss is an accountant, and maybe he would know more about this. Is there any more detail?
What detail do you need? There are liens on the house she is living at now.. and the liens also show up on the credit reports. She couldn't refinance her home just beause all the liens were there. The liens were place there by the IRS. There is no judgement.. at least not on her report. What questions do I need to ask to help?
The IRS usually go back 3 years, unless the case is considered fraud then they can go back seven. That's why it is so important to maintain all tax documentation for three years (at least). I have a feeling that the IRS caught your friend and her husband several years ago, but they still had to go to court to lien the home (this can take several years). If she was co-owner of the joint business, she is responsible for the debt, also. Also, if she knew they did not file corporate taxes she is even in bigger trouble. There really is no way to beat the IRS. They are the biggest tax collector in the world and there is no one to tell them no. Dani
She is not trying to 'beat' the system.. she is trying to get this off her record. She has her name as part of the business even though she really wasn't.. so does she really ahve any options? How can she get the tax reports from the small business then? This is not a corporation.. it was small small deli or something like that..
has she talked to a lawyer? maybe she could submit an offer in compromise. Considering the fact that neither of them filed taxes for those years, it is a miracle she is not in jail for evasion. The IRS is a scarey bunch.
No money to pay attornies.. the whole point is that she doesn't owe that much money in the first place so thats why its such a messed up situation.. she can't file for her taxes even if she wants to beause the state doesn't have the records.. and the IRS won't let off unless she shows proof of how much she made.. but i thought there was some system where u can do some form of validation where the IRS has to prove to HER why they are trying to extort that much money out of her.. anyone know of this? I remmeber bill b mentioned this sometime..
Does she have any kind of proof? W2s? 1099s? Is there a company profit/loss sheet? Balance sheet? Anything? Did they maintain company records via the computer or by hand? If she signed her name as co-owner of the company she needs to be asking the other co-ower(s) some serious questions. The reason her amount is probably so much is due to the penalities and interest the IRS adds on. Was she aware that the taxes weren't being filed? Did they have access to an accountant or bookeeper during this time? The only way I see to get out of this is she needs to prove cases of neglect or fraud against the other co-owner(s). And her being a co-owner, there is a slim chance for that argument to stand up in court. Dani
