QUESTION
I received a tax letter from the IRS owing taxes in excess of $300K for '11 & '12. If I ask to appeal or an OIC will it prompt the IRS to audit '10?
Asked on Aug 31st, 2014 on Taxation - California
More details to this question:
I have 75% in penalties for tax fraud. I can't afford to pay the tax bill. I have put my house up for sale and I need to respond to the IRS by Sept. 16th. I have an attorney, but can no longer afford to pay the fees. I'm paralyzed and feeling hopeless. I'm currently on disability and I'm unemployed. I'm trying to get the best price for my home. Should I rush the sale? What would you recommend as next steps? What can I do next without losing my mind?
1 ANSWER
4 Awards
Whether you appeal or submit an OIC, you may be subject to an audit for 2010 for other reasons. Your need to sell your house seems to be partially unrelated to your tax obligation - you are unemployed and disabled and therefore unable to pay your mortgage. Working with an attorney seems important since you have a complex situation - changing attorneys may make sense only if the next lawyer's rates are lower than your current lawyer's.
Answered on Sep 11th, 2014 at 10:15 AM
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