What is the name of your state? NORTH CAROLINA
State Filed Taxes in Question? ILLINOIS
Type of Taxes In Question? FEDERAL
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Background:
(1) Filed 2004 Federal returns on 12/31/06 (20 months late)
(2) I calculated $29,029 due
(3) They calculated $35,047 due
(4) I was a contractor and self-employed that year (unlike all other years)
(5) I was not aware of the tax laws regarding self-employment
(6) I cannot pay $29,029 or $35,047 today nor in the immediate/foreseeable future
(7) I do have disposeable income of $750-$1000 a month that I could apply to the IRS
(8) I wish to AVOID Tax Liens, Garnishments, and Wage Deductions and/or asset (Bank Account) freezes
Questions:
(1) Is the $6,018 difference between what I figured and what they claim I owe interest, penalties and fines a reasonable one? In other words, I never received an adjustment letter saying that they refiled my taxes differently, so I should assume this $6K figure is the penalties and interest?
(2) Would it be worth finding a tax professional to review my return, make adjustments, and somehow get it under the magic number of $25,000 to quality for a streamlined IA?
(3) How can I best avoid a Tax Lien in any situation -- and is the lien easily removeable once the debt is settled? I just went through bankruptcy (Chapter 7) last year and I don't want to ding my credit any further?
(4) Are companies like American Tax Relief any good? They want $2850 to (a) represent me, (b) try to get a penalty abatement from the IRS, (c) negotiate a payment plan -- they already said because of my disposable income I do not quality for a "offer in compromise"
(5) What are my options for representing myself and trying to get a payment plan without disclosing all of my detailed financial information?
(6) Are there outfits out there that will let you take a loan out to repay the IRS?
Thanks all in advance.
Jeff
State Filed Taxes in Question? ILLINOIS
Type of Taxes In Question? FEDERAL
---------------
Background:
(1) Filed 2004 Federal returns on 12/31/06 (20 months late)
(2) I calculated $29,029 due
(3) They calculated $35,047 due
(4) I was a contractor and self-employed that year (unlike all other years)
(5) I was not aware of the tax laws regarding self-employment
(6) I cannot pay $29,029 or $35,047 today nor in the immediate/foreseeable future
(7) I do have disposeable income of $750-$1000 a month that I could apply to the IRS
(8) I wish to AVOID Tax Liens, Garnishments, and Wage Deductions and/or asset (Bank Account) freezes
Questions:
(1) Is the $6,018 difference between what I figured and what they claim I owe interest, penalties and fines a reasonable one? In other words, I never received an adjustment letter saying that they refiled my taxes differently, so I should assume this $6K figure is the penalties and interest?
(2) Would it be worth finding a tax professional to review my return, make adjustments, and somehow get it under the magic number of $25,000 to quality for a streamlined IA?
(3) How can I best avoid a Tax Lien in any situation -- and is the lien easily removeable once the debt is settled? I just went through bankruptcy (Chapter 7) last year and I don't want to ding my credit any further?
(4) Are companies like American Tax Relief any good? They want $2850 to (a) represent me, (b) try to get a penalty abatement from the IRS, (c) negotiate a payment plan -- they already said because of my disposable income I do not quality for a "offer in compromise"
(5) What are my options for representing myself and trying to get a payment plan without disclosing all of my detailed financial information?
(6) Are there outfits out there that will let you take a loan out to repay the IRS?
Thanks all in advance.
Jeff