₪₪₪ Lien placed. 5 years of unfiled taxes due to brain injury. What advice would you give?
As POA for my son I filed 5 years of tax papers in Mid April. He suffered a brain injury 6 years ago, and as a self employed businessman was able to work, with help, up until early this year. He was paying estimated taxes prior to the accident. I am now waiting for the papers to be processed.
According to the accountant, approximately $30,000 in taxes would have been owed for the 5 years had they been filed in a timely manner. The amount has escalated to well over $120k due to the addition of penalties and interest,and a lien has been placed. I have called the IRS re submitting the 433F and they said that this shouldn’t be done until the papers are processed.
These are the questions. Should he: 1. pay the $30,000 now in one lump sum and wait for the IRS to tell how much more he will owe; 2. make a partial payment now; 3. do nothing until all is processed, and then submit an Offer and Compromise (they will see that he has little more than the $30k and, I have been told, they may be willing to settle for less). Please note that he stopped work this year and once the taxes are processed will file for disability. He’s had a very high credit score and the lien will have certainly destroyed it. What is the best thing to do at this point?
Category: IRS Problems
