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If you haven't filed taxes??

I just found out that my friend has not filed taxes for 3 years!! She signed up with one of those tv ad spots for negotiating your taxes and they charged her an arm and a leg and haven't done anything yet. I searched the net and found horror stories about these places online, but not a good story on any of them.

My question is, is their a reputable company that can handle tax issues for taxing states (moved between states)? My first thought was to find a local tax attorney, but again..how much do they know and are they qualified to be negotiating 3 years of taxes?

From all I've read this has to be done right the first time and there is no do-overs with the IRS once something is agreed upon. Just worried she's going to get raked over the coals by this.

7 Answers

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  • Anonymous
    1 decade ago
    Favorite Answer

    Are you saying they have not even doen her returns??? She needs to either demand her money back and/or go to the Better Business Bureau. They are obviously not bona fide tax professionals or they would have made it a matter of URGENCY to do her returns!

    Secondly, I'm not sure what you would consider a reputable company, but I was trained at H&R Block and I would suggest she go there. I know it would not be cheap, but I definitely would NOT suggest tackling this mess herself. By virtue of the fact that she did not file for three years, it is pretty clear to me that she was not comfortable handling her own tax situation herself.

    She needs to ask for an EXPERIENCED taxpro - NOT a newbie and bring in all of her information for all three years. She should do this ASAP because the IRS has the legal right to fine her for all the amount of time she has not filed/paid taxes.

    Whether she goes to Block or an accountant is up to her. The important thing is that she do this ASAP! A taxpro can discuss all options with her.

    Source(s): tax pro for almost 4 seasons
  • Judy
    Lv 7
    1 decade ago

    There is no negotion possible until AFTER you file the returns. So first of all, she needs to get them filed - a CPA who works with taxes should be able to handle that. If she can't pay all that she owes at once, the IRS will set up a payment plan for her.

    Sounds like she basically got scammed by the tv "negotiate your taxes" company, if they didn't even tell her that.

    The negotiation process is called making an offer in compromise - a CPA with experience in OIC's can handle that also. Most are NOT accepted though. They are only accepted if it's clearly impossible that she will be able to pay what she owes. Any assets she has are taken into account in this decision.

  • 1 decade ago

    I'm a bit confused about your question. Does your friend have any existing balances with the IRS? If so, then they need to call the IRS to resolve those balances. Those three returns may or may not need to be filed. The representative can tell your friend which ones are required.

    If there are no current balances but there will be when the delinquent returns are filed, your friend should file the returns then call the IRS once they receive the balance due notices. A payment agreement can then be established.

    As for who can file the returns, any tax preparer can file the federal returns and most should be able to handle returns for most states.

  • 1 decade ago

    In general, I agree with the other responses. Note that your question related to state tax issues (moving between states) is not a matter for the IRS, and needs instead to be corrected with the Departments of Revenue from each of the states she lived or worked in during this period. Her total income from all states will hit her Federal returns. Note that if your friend is an employee with withholding on her income, it is actually entirely possible that she owes little or could even have a refund coming. No need to automatically panic.

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  • 1 decade ago

    Your friend made a big mistake by hiring someone off a tv commercial. IF they have not filed her return or helped her in any way she needs to go back and demand her money.

    She should of hired someone (CPA)in her town, city to help her file her returns

    She could even visit her local IRS office, they usually help file returns, depending on the amount of income.

    She must file her returns immediately. She can and should contact IRS that she is attempting to get the returns filed so IRS can update her records and IRS will know she isn't ignoring them.

  • Anonymous
    5 years ago

    If a person earned $8600 in wages (W2) and had taxes withheld then you should file a tax return to get the withholding refunded. If a person earned $8600 in self employed (Form 1099) then yes you are liable to file a tax return Form 1040, Sch C and Sch SE. good luck

  • GG
    Lv 7
    1 decade ago

    personally, i would just do it yself. i'd gather all of my w-2s and manually fill out my 1040 or 1040EZ, whatever form it is and ail them in

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