Legal Question in Tax Law in Illinois

Re: Internal Revenue Service

Sounds like unpaid payroll taxes to me. If so, you will not get a sympathetic ear from the IRS (probably won't anyway). If you don't take their deal, which I assume is your tax lawyer's advice, they will shut your business down, liquidate it, and come after you personally for the trust fund portion of the tax.

Our comments are based on treating your question as a hypothetical. Accordingly, our comments could be substantially and materially different were we advised of all of the relevant facts and circumstances. Our comments are by necessity general in nature, and should not be relied upon in taking or forgoing action in your circumstances without retaining an attorney. In order to fully explore your legal matter, you should meet with us or another attorney and bring to any such meeting all relevant documents and correspondence, and any other relevant facts.

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Re: Internal Revenue Service

It's very difficult to answer your question without more information. Also, I hesitate to second-guess another attorney. However, let me ask a few questions?

Have you requested a collection due process hearing? If you can show an actual hardship, and you are able to offer an alternative to the IRS's demand, you may be able to persuade an independent appeals officer to accept an installment plan with lower payments.

Have you considered an offer in compromise based upon the efficient collection of tax? If shutting your company down will put a large number of people out of work, then it may be that you can work out a more favorable compromise.

Finally, is the amount the IRS is asking for money you REALLY can not afford, or would it merely represent the need to change your current lifestyle? If you can borrow against your home and business, and you can make the requested monthly payments and still keep food on the table and a roof over your head, then you are not likely to get a mroe favorable response from the above alternatives. The IRS generally won't evict people from their homes and they won't take food from the mouths of your children. On the other hand, they won't have much sympathy for a taxpayer who needs to cut back on their current lifestyle to pay taxes and interest owed to the government.