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How can a Tax Attorney help me to deal with IRS?: I did not file 2001 (in and out of hospital). In 2003, IRS took 5k out of my bank, left me with no food and money to pay my mortgage, when I was unemployed, stating I still owed 1k more. Up to this point, I always received IRS refund. How I ended up owing when I knew I would get a 2001 refund is beyond me. In 2007 and 2008, IRS took 50%/thousands out of my paychecks and put a 55k lien on my house. I became disabled and bank foreclosed on my house. I assumed IRS collected on their lien. In 2017, IRS sending me a letter stating I owe taxes for '08 and '09 when I was disabled. What should I do? How can a tax attorney help me get out of this? I am on SSI and disabled. Thanks for advice.

Asked 3 months ago in Tax

Harry-Todd’s answer: In general, a tax attorney can advise you on various alternatives you have with respect to your unpaid tax liability. Here are some very brief thoughts:

If you can not pay your old taxes in full, then your alternatives include a partial pay installment agreement, requesting that your account be classified as "currently not collectible" or submitting an Offer in Compromise. Your eligibility for each of these, and which one to pursue, depends on your actual financial circumstances.

A tax attorney will review your specific financial circumstances (as well as your disability) and help you understand the advantages and disadvantages of the various alternatives.

Good luck.

Answered 3 months ago.


My wife received $99,980 as gift from a friend in China, I also received $99,980 from the same friend, do we need to fill 3520?: I've heard that if a US person receives gift more than $10,000, he/she should fill Form 3520 to report this gift when fill the tax return.

In my situation, my wife and I fill the tax return jointly, either of us does not receive more than $10,000 as gift, but jointly we do receive more than $10,000 gift, do we need to fill Form 3520 when we do tax return next year?

Also, if we fill our tax return separately, do we need to fill Form 3520?

Asked 3 months ago in Tax

Harry-Todd’s answer: As a technical matter, I absolutely agree with Ms. Wynn's answer to the question. However, as a practical matter, the fact that this was structured as separate gifts of $99,980 to each of the Husband and Wife from the same friend makes me think twice about this.

If for some reason, the IRS were to examine this transaction, are there other facts that would make the IRS want to combine the two gifts into a single gift (so they could then assess the high penalties for not filing a Form 3520)? Are the funds being held separately by both Husband and Wife or in a joint account? Or, was the gift-giver truly a friend of both the Husband and Wife? Were the almost $200,000 in cash transfers really even gifts (amounts given out of disinterested generosity and for nothing in return)?

As a protective measure, I would consider whether you or your Wife should go ahead and file a Form 3520 reflecting the $199,960 in combined gifts. Depending on your actual facts (other areas of your tax return), on the surface, there would not seem to be a "down-side" to such reporting.

Again, as a technical matter, I agree with Ms. Wynn's answer. I just believe that you would be well-served to review the detailed facts with competent counsel.

Answered 3 months ago.


My ex-wife wants me to share in the capital gains tax write off so she doesn't have to declare the whole thing : I believe she made about 400,000 so she wants me to jointly claim the capital gains is this so she doesn't have to pay tax she made me quit claim the house to her years ago but I was still on the loan what should I do

Asked 3 months ago in Tax

Harry-Todd’s answer: Your question is a bit confusing because you use the term "write off" but then say your ex-wife wants you to share paying tax on the gain.

Assuming that is your question, very generally, if your divorce has been final for years and your ex-wife has been the sole owner of the house, then she'll be responsible for paying any capital gains tax beyond the amount excludible if the house is her primary residence.

Good luck.

Answered 3 months ago.