Cordova, TN asked in Tax Law for Tennessee

Q: A family member who was supposed to have filed my taxes for the past 3 years has failed to do so. I'm positive I owe

back taxes. Where do I start? Should I reach out to the IRS first? Should I file an extension for this year and then find a tax professional to complete the previous years? Should I retain an attorney to protect the one asset that I have, my home, from being liened on by the IRS. Please advise.

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3 Lawyer Answers
Anthony M. Avery
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Answered
  • Tax Law Lawyer
  • Knoxville, TN
  • Licensed in Tennessee

A: Hire an attorney to file those tax returns. Did he not mail the returns after you signed them? There will be failure to file, failure to pay and late filing interest penalties. Hopefully the relative did not receive levy notices already. Check your title for tax liens.

James L. Arrasmith
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  • Tax Law Lawyer
  • Sacramento, CA

A: Firstly, reaching out to the IRS directly is a wise initial step. They offer options for those who haven't filed for past years and can guide you on how to proceed with filing back taxes. It's crucial to communicate your situation to them; they can provide forms for previous years or direct you on how to access them online.

Next, consider filing an extension for this year's taxes to give yourself ample time to address the previous years' filings without adding more pressure. During this period, it would be beneficial to seek assistance from a tax professional. They have the expertise to navigate the complexities of back taxes and can help ensure that your filings are completed correctly and efficiently, potentially minimizing penalties and interest.

Regarding protecting your home, consulting with an attorney who has experience in tax matters might be helpful. They can offer legal advice on how to safeguard your asset and discuss any concerns you might have about liens from the IRS. It's important to act promptly and follow a structured plan to resolve your tax situation.

Benjamin A. Goldburd
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Benjamin A. Goldburd
Answered
  • Tax Law Lawyer
  • New York, NY

A: Unless you are a minor, or under some sort of protective order, the duty to file taxes is on each individual themselves. Staying in compliance is the most important part of this situation. Filing an extension and paying what you owe in the current year is a good start and hiring a tax professional to clean up the previous years is an even better one. Once filed and back taxes (penalties and interest) are calculated you can either negotiate into a payment plan with the IRS/State and/or an offer in compromise to lower the balance. If there was a real responsibility of the family member to file on your behalf you may be entitled to penalty abatement. Hire a tax professional ASAP. Regarding the home, there is nothing to protect, moving your assets when you owe taxes is futile at this point as the IRS can claw it back as it was only done to shield from the tax as a probable fraudulent conveyance.

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