Legal Question in Tax Law in Massachusetts

Re: overwhelmed-haven't filed

Your first step should be to contact a qualified tax professional to assist you with this matter. Don't worry - you're not alone - there are literally millions of instances of nonfiling out there in the world. However, you should know that the IRS has increased enforcement of tax delinquencies.

Your lien is the first step in a series of events that we attorneys call "bad things." Not only can your lien prevent you from obtaining any type of credit or, for that matter, getting a loan to pay the tax off, it can be used as the basis to levy your wages or even to seize your assets, including your bank balances and your property.

Not only can you be subject to financial constraints, but in instances of intentional nonfiling, the IRS will send your account to the Criminal Investigation Division for review. After that, it's on to the Office of the U.S. Attorney for criminal prosecution - which is something that you probably wish to avoid at all costs.

The problem is always aggravated by the fact that the IRS will file what is known as an "SFR" (Substitute For Return) for the missing years, and will actually prepare the tax returns for you. This results in a greater tax liability, insofar as you are permitted only one standard deduction, and you do not have the benefit of anything else such as business expense deductions, depreciation of property, etc.

Fortunately, there are a number of steps which may be taken in order to rectify the situation before it gets to the level of criminal prosecution or even property seizure. For example, the IRS may permit you to file amended returns for the missing years and, in fact, under appropriate conditions may decide not to hammer you on all of the missing years. You may also submit an "Offer in Compromise," proposing a greatly-reduced settlement of your tax liability, or you can obtain an installment payment arrangement to clear the past-due tax liability. In addition, if it appears that you are the victim of your spouse's tax delinquency, you may be able to avoid tax issues altogether by asserting an "innocent and injured spouse" defense.

In any event, it is essential that you address these issues sooner rather than later. Unlike your teeth, tax problems don't go away if you ignore them. In fact, they get much worse the longer they are permitted to go on.

Our office can provide representation to you with respect to this matter, and our attorneys would be pleased to speak with you to help you assess your situation and outline your options. Please feel free to contact our office for a free, confidential consultation at your earliest convenience.

Thank you, and take care.

-Marc D. Daffner, Esq.

Re: overwhelmed-haven't filed

Your problem may not be as bad as you think. If you did not have income and did not sign a joint tax return, you do not owe any tax. If you had income, the IRS may have filed a tax return for you. We have to look at your IRS transcripts to see what they claim you owe. YOu should file tax returns only for income you earned, not your husband. The first thing to do is to look at the lien. If you send me your name, your husband's name, and county or counties you have lived since your last filed return, I will check out whether you have a lien, what years it is for, and how much the IRS claims you owe. After that, we will have a clearer picture of your responsibility. Steve Klitzner [email protected] 18002191118