Have any of you ever had any degree of tax problems and if so I am interested in how you dealt with them.
A ‘friend’ of mine has some old unpaid, unfiled federal and state income tax issues. Any help would be appreciated.
John
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My brother had to cut a hole in the bathroom floor to run new wires for an outdoor light. Set the saw to 3/4" + 1/8" ( 3/4" flooring) and cut a "line" of the square he'd marked on the floor. He hit both hot and cold pipes!! I know they were only 3" apart. Mrs Home owner had know idea where the shut offs were!!! It was a fun night thankfully next to no damage.
I think Nigel might be suggesting a way to account for "lost" records.
Maybe he's paranoid that he might become implicated in a tax fraud conspiracy so he didn't directly answer.
Or maybe he just got " 'speroed"!
LOL
My suggestion is that he IMMEDIATELY (meaning yesterday, if not sooner) contact a tax accountant registered to work the IRS or a tax attorney to make contact with them on his behalf. It is often possible to reach a negotiated settlement in these cases. Going forward on his own will make his case stronger. Going forward without any method for re-payment might make it harder or easier, depending, but still negotiable. In either case, making the attempt to cross that divide will make him feel better about joining and sharing with his fellow citizens in their suffering and will remove the cloud of fear raining daily on his future.
Good luck!
Excellence is its own reward!
get an accountant and immediately file all of the late and current returns... both state and federal..
find out what the damage is... it is best if you have a registered agent as piffen says.. you and your agent can negotiate the amount..
when you have the negotiated figure.. go to the bank and refinance your home to raise cash to pay it off.... the banks think this is a legitimate reason since you are really protecting their loan also....
if you can , borrow enough to do two things ... pay your taxes and capitalize your business...
next , incorporate and put yourself on the payroll.. use a payroll service, so your withholdings are automatically deposited and your 941's stay current...
then start running your business like a business...
your friend can change their life and bring joy back into their business..
and believe me , your friend has lots of company in the construction trades..