Q: If I were to be audited by the IRS and my Dad owes a lot of money to them, could this flag the IRS to go after my Dad?
A:
Not necessarily, but it's possible. It depends on what turns up in the audit. Regardless, the most important question is why he owes a lot of money to the IRS in the first place. If a taxpayer hasn't filed returns in a handful of years, the IRS would basically create a return for the purpose of sending a tax bill. Often, the amount can be reduced by sending in properly prepared returns to the correct IRS unit.
If a taxpayer genuinely owes the amount, taxpayers have a variety of options to pay it off. There's payment plans and Offers in Compromise, a formalized settlement process that is calculation based ((income - valid expenses x 12 or 24) + equity in assets). Regardless, the best solution is to get into compliance and begin making progress towards becoming "tax healthy." If a taxpayer continues to ignore the IRS, that's where they get serious with bank levies, wage garnishments, liens, etc.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
