IRS troubles -- where to get help?

[db]

I'm trying to help a friend, but hitting dead ends so far. 10 years ago (age 16) he was making good money (30k), but having the judgment of a teenager he didn't file income taxes, and has blown it off until now (he's getting married and wants to clean up his 'past'). He admits it was stupid to do what he did.
He signed an agreement with the IRS to pay what he owed from 10 years ago, including interest/penalties.

However, since that agreement they have twice audited other years and decided he owes more, and added it to his prior agreement, which they claim they can do. I also hear from a lot of people that the IRS bluffs a lot, and if you buy it you screwed yourself.
He feels there's nothing he can do about it even thought the additions are unjust. He used a lawyer for the original agreement, but it was just a general practice lawyer with no expertise in IRS matters. He feels that to get another lawyer will be useless and that he just has to take it laying down.

Should he be looking for a tax lawyer who specializes in dealing with the IRS, or for a CPA who does the same thing? Any pointers/information whatsoever much appreciated.

He just wants to get a fair deal and not pay more than he legitimately should.

 

[jpeyton]

If you watch TV late enough at night, that's when the tax attorneys usually run their commercials.

 

[HappyPuppy]

Find a new friend. Anyone who rolls over and gives up will only drag you down to their level.

 

[ChinaCat]

The IRS has something that is called an Offer In Compromise.

I screwed up in a slightly different way from your friend, but the results were similar. With a few very young children I really needed a break. Went to the IRS to discuss an Offer In Compromise and we worked out a deal that was a win/win for both of us.

I've always been somewhat patriotic but have protested plenty of things this Country has done. That experience made me realize how incredible America really is. Only in the USA would a government entity responsible for taxes exhibit such incredible heart.

Turn your friend on to this and hopefully if he approaches the situation with a the best intent, he will find a way out. Worked for me and I was in a lot of despair.

Good luck.

ChinaCat

 

[db]

Thanks CC

 

[badmouse]

There are some VERY GOOD tax attourneys out there, some of whom know the tax code better than the IRS itself. I suggest your friend start asking around for references.

 

[snooker]

I myself just recently got the IRS off my back after a screwup at H&R Block back in 1995 (one year before they began their 'we will stand behind our work' policy)

They took paychecks, took every penny I had in a checking and savings account, and held every single refund of mine from 1995 to 2001 all for a $1,000 error H&R Block did. i was fully responsible for all interest and penalties because from 1995 til 2001, so I ended up paying almost $10,000 +- in the end.

I finally got it resolved by contacting the IRS Taxpayer Advocate.

They actually got it all resolved and got me a check back from the irs for a little over 1k (Apparently the IRS took 1k too much from me). But of course there was no interest or penalties along with that check ;(


I believe I should sue the IRS for something since they took all that money, declared that I was married in '95, even though my marriage certificate says i was married in July '96, took all my earned income credit away for my kids. Basically they took my filing status and changed it, took all my dependants away as well as the earned income credit, which changed my tax's owed drastically. Thus if they didn't do that, I wouldn't have had to pay all the interest and penalties, because it went from me being overpaid 1k in my refund, to me owing like 8k BEFORE interest and penalties in the new scenerio, which they created and then changed 5 years later back to where it was to start with:|

 

[mcveigh]

get a good tax attorney/cpa you can settle for less with the irs often...ofcourse he already signed an agreement...

 

[JEDI]

They waited 10 years to catch your friend???

 

[Ameesh]

you friend needs to hire a tax laywer many times they can get away with paying pennies on the dollar

 

[db]

snooker, it sounds like they took advantage of you and you had no recourse. Perhaps a civil suit would bring some justice.

 

[Yossarian]

Originally posted by: badmouse
There are some VERY GOOD tax attourneys out there, some of whom know the tax code better than the IRS itself. I suggest your friend start asking around for references.

yes, many are former IRS employees. they are expensive of course.

 

[neonerd]

didn't read what u said other than the title, but my uncle sewed the IRS once...lol

 

[johnjosh]

pm user "CPA" on this board he is certified public accountant he may have some sudgestion for you.