I had a client come in last week who owed taxes for 2010 through 2015 for a total amount of $110,000, he had not paid any estimates for 2017 and he had not paid nor filed his 2016 tax return.
He had already paid $6000 to one of these TV tax resolution places that have not accomplished anything and was offered to have a local law firm represent him and twice that amount.
First, you need to understand that since I work for the national office with the IRS and been a board-certified tax attorney for over 40 years, these people on TV do not tell the taxpayer about some basic information. First, there are two questions that every IRS revenue officer will ask a taxpayer, the first question are you current on all your filing? The second question are you current on your estimated tax payments? If the answer to either of these questions is no, the IRS cannot, according to their manual, accept an offer in compromise or an installment plan.
So in order to settle with the IRS, you must have all your returns filed and must be current on at least two-quarters of estimated taxes. If you are a W-2 employee then your taxes are current because they’re being withdrawn out of your paycheck. Next, you have to file a Form 433, Personal Finance Statement, which a copy of it attached to my website at Hoytlaw.com.
In summary, there is nothing on TV advertising lawyers can do or TV advertising nonlawyer firms can do for a taxpayer if they are current on their current filing or not current on their current estimates.
Ted is an Attorney & Counselor at Law, and Board Certified Tax Law Specialist. His primary areas of practice are Tax Law & Estate Planning and is located in Lafayette, LA