TRS on KLOS Part 3: More Tax Resolution Advice
While on the air with KLOS 95.5FM, Michael Rozbruch got to spend some time talking with listeners and answering their tax questions. We wanted to share some of these questions in case anyone out there is in a similar situation.
Q: I have a question in regards to my father. He has not filed his income taxes for at least 20 years plus. And it has gotten to the point where he has had his wages garnished. My poor mother has tried to get involved and the IRS will not give her any information even though she’s his wife and an innocent spouse.
A. They probably file separately. If she were on the joint return with him, they should give her the information. He’s got a major problem, but it’s fixable. There’s a solution to every problem. He needs to get the last 7 years filed. Our average client has 4-11 years of unfilled returns. Listeners should know that it’s a misdemeanor, punishable up to 1 year in prison, $10,000 fine per year for unfilled returns even if the IRS owes you money.
Q. I wasn’t making any of my quarterly payments to the IRS for several years. And this year I surpassed $25,000, which puts you in a different category. I had to fill out a bunch of forms and now they’re going to be evaluating my finances to determine how fast this can be paid back. What can I do?
A. Nothing. What you should’ve done is gotten representation. Once you’re over $25,000 you’re in the Big Leagues. It’s full financial disclosure so you’ve given the IRS a roadmap to your assets and income so you’re basically at their mercy with regard to what they want you to pay back over the next 60 months. If you had representation there’s a certain way with being honest and truthful on how to fill out that roadmap that could have resulted with you paying less than what you’re probably going to end up paying.
Q. I have a question in regards to selling stuff online, like on eBay. Do I need to claim that income?
A. It’s all reportable income. Actually now the IRS is looking at PayPal accounts. That’s going to be their next big project. All that money is includable on income. But so are the expenses to do business on eBay
Click here to listen to the interview.
More Tax Help, IRS News and Tax Relief Tips:
- TRS on KLOS Part 2: Tax Resolution is Financial Planning In Reverse
- TRS on KLOS Part 1: Knowledge is Power When Dealing with the IRS
- KLOS Tax Tip #28 - Many Americans Who Never Before Qualified for Tax Relief, Now Qualify
- Don’t Hide from the IRS if you Owe Over $15,000 in Back Taxes or Have Unfiled Tax Returns
- Tax Resolution News: IRS Warns Against Frivolous Tax Arguments That Can Incur Severe Penalties
Tags: Innocent Spouse, interview, IRS, KLOS, Michael Rozbruch, tax expert, tax resolution, tax resolution expert, Tax Tips, wage garnishment
