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I owe IRS from a previous restaurant business I had. 10,000. I hired a company, BBB accepted to settle this debt. 3500.00

Rochester, NH |

I also had a hobby shop and didn't file income tax for 2011&2012. I was exempt because I am disabled. I have to file a chapter 7 with all the accumulated debt these acquired. I have a pro bono lawyer and we are waiting for me to file my taxes for these years I had the shop. Do I go through with the company I hired and file taxes with them, which is included, or should I go to Jackson & Hewett or try to do them on my own? It's going to take me a bit to get this company started for I need money down and I need to push the bankruptcy through asap for debtors are harassing me?
Bankruptcy is first and is #1 on list. Please tell me what to do. thank you , thank you. Vicki boutsianis

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Attorney answers 4

Posted

First, I don't know why being disabled makes you exempt from paying income taxes. Second, if you are going to file for bankruptcy you should hire a competent bankruptcy lawyer. Third, if you have to file back tax returns you should hire a competent tax return preparer. If Jackson & Hewitt counts as a competent tax return preparer, great (I do not know).

Posted

I agree with Mr. Givner. You are required to have filed the last 4 years of income taxes (if you were not required to file a return you can substitute an affidavit.) You can use whoever you desire to consult on filing income taxes as long as you believe they are competent. P.S. I suggest you do this quickly because after the first of year tax preparer get busy.

Posted

As previously advised, you should seek competent counsel and get a consultation. You should get the tax returns prepared promptly. If no tax is due, it should have no impact on your bankruptcy. If there is a tax due, after a period of 2-3 years, those taxes are dischargeable in bankruptcy. So, that should become a consideration if taxes are due. Make sure you file your 2013 tax returns timely. If you cannot afford to hire assistance for your tax returns, there are many agencies that provide competent tax representation for those who cannot afford. The IRS website is one place to search for such agencies.

Marty Davidoff, emd@taxattorneycpa.com, 732-274-1600. This answer is provided for general information only. You should seek advice from an attorney or tax professional.

Posted

Actually the IRS's policy on un-filed tax returns is for 6 prior years [there can be exceptions] as Internal Revenue Service Policy Statement P-5-133 says:

Policy Statement 5-133

Normally, application of the above criteria will result in enforcement of delinquency procedures for not more than six (6) years. Enforcement beyond such period will not be undertaken without prior managerial approval. Also, if delinquency procedures are not to be enforced for the full six year period of delinquency, prior managerial approval must be secured.

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