How do I get started with a tax attorney to help me with back taxes?: I owe back taxes from non-filing
Rex’s answer: I would recommend that you hire a tax preparer to prepare the tax returns. Then file them electronically. Don't worry about paying the taxes, interest and penalties until they have been processed i.e., 6 months, and you hear from the IRS and FTB as to how much is owed. At that point find a tax attorney or EA that can assist you with a payment plan or Offer in Compromise. The latter can cost on average $8K so I would strongly recommend that you do the offer in compromise yourself and save the $8K to pay taxes or submit the installment agreement (found online). They are not that difficult to fill out. Good luck!
What options are available for this situation?:
My company was audited by CDTFA (CA) and found transactions that should have been taxed but wasn't. The total tax liability is over $2M plus penalties and interest. Through the appeal, our representative argued that some of the transactions from the test should be removed as they were already included in other audits and CDTFA couldn't collect the tax twice. In an email, CDTFA also claimed those companies were not audited but my representative actually performed the audit on one of the companies we brought up.
Summary, CDTFA lied (email evidence) during an appeal and the appeals officer didn't investigate that the companies were already audited. He just took the Department's word for it.
Rex’s answer: I would recommend that you call the Taxpayer Advocate (Alfred Buck) at the CDTFA and make your arguments in an effort to enlist his aid in dealing with the auditor. Good luck!
When I get a modest inheritance, does a federal and/or state tax lien attach to it?: I have a federal tax lien, currently in not-collectible status, and am about to receive a modest inheritance for an amount far less than the lien. Does the lien attach to the inheritance? Can the IRS seize it?
Rex’s answer: Inheritances are generally not taxable; and, it is highly unlikely that the IRS will levy the funds if you avoid putting the funds in your bank account. If instead, you do deposit the funds into your bank account and the IRS decides to levy your account after that, they will be able to empty the account up to the amount of the levy. As for liens, these collection devices are used to make sure a taxpayer pays his back taxes if the real or personal property that has been liened is ever sold or refinanced. A lien is not imposed on an inheritance unless of course you inherited a house and it is put into your name and this comes to the attention of the IRS at some time if the future.