Q: How can I resolve my back taxes with the IRS?
I am actively looking for advice, and even retaining someone for help navigating this mess. I owe around $150,000 in back taxes from 2014, 2015, 2016, and 2017. The returns are filed, but I can’t afford to pay. The back taxes arose out of a business I owned I didn’t know how to run properly, and also a pretty expensive divorce. I have since shut the business down, and I am strict W2 now, so moving forward I won’t amass any more debt. What I owe: 2014 is $15K, 2015 is 35K, 2016 is 60K, 2017 is 40K. What complicates it is that I got remarried, and filed joint with my new wife in 2016, so she is on the hook for 2016. She filed an installment agreement with the IRS for 2016 for $1045/mo that is current. So my question is what do I do with the rest of these years just on me? Do we do a new joint installment agreement for all the years (even though my wife isn’t liable for anything outside 2016)? Am I able to do a offer in compromise for 2014, 2015, and 2017 only by myself?
A: You can do either an Offer in Compromise for your liability for 2014, 2015, 2016, and 2017 or an installment agreement for your separate liabilities (or one joint installment agreement for both your joint and separate liabilities), based on your financial situation. There are some special procedures involved in filing an Offer in Compromise under these circumstances and it is important to make sure you actually qualify before submitting an Offer. I highly recommend seeking professional assistance for this and make sure that it is an actual professional who will be working on your case.
A: It might be possible to submit an Offer for all of the liabilities. It is impossible to tell you on this format if you will be eligible or not. I recommend speaking with a good tax attorney. Stay away from the places you see advertised on TV. Most of us offer a free consultation and can give you the options available to you. A lot will depend on your specific financial situation and an experienced tax attorney will be able to give you a better answer during your consultation. There may also be a way to reduce some of the penalties and interest that your wife is paying in the event she is unable to submit an Offer for 2016.
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