Hackettstown, NJ asked in Business Law for New Jersey

Q: Hello. I've spoken to a lawyer already but I'm just trying to make sure I'm making the correct decisions.

My business is behind on tax payments/filing. I currently have an accountant organizing everything for me so that I can get back on track. My lawyer wants to send a DVD to the IRS. My question: Is a disclosure to the IRS necessary if I'm less than a year and a half behind? Would it be a bad idea to just have the accountant figure out how much I owe and then file the appropriate forms? Also, the lawyer I spoke with claims that I may owe around a million dollars in taxes and penalties, but that he could get it down to around $80k. However, my accountant hadn't even finished getting my financial records in order. Does $80k from a million seem possible or could it be that the lawyer is exaggerating numbers to get me to pay more?

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1 Lawyer Answer
Leonard R. Boyer
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Answered
  • Clifton, NJ
  • Licensed in New Jersey

A: Do you seriously believe if you owed the IRS a Million dollars, that anyone is going to be able to get that debt reduced to just $80,000? Is your attorney admitted to practice before the U.S. Tax Court? What kind of credentials does your attorney have? On what basis does your attorney believe that to be true? To be able to effectively deal with a dispute with the IRS, and account has to have a strong tax background and needs to be an enrolled agent. I have not reviewed your information in detail, but you have written more than enough to raise serious questions. What DVD does your so-called attorney want to send to the IRS? What information is the attorney suggesting be disclosed?

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