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February 7, 2006 9:02 PM Subscribe
Icky back taxes situation, what would you do (esp. if you know tax law well)?
posted by lannanh to work & money (10 answers total)
A friend of mine worked for a company for approx 5 yrs believing his income was off the books, it ends up the company was claiming his income the entire time. It now ends up he owes roughly $20K. His wife found a tax attorney from TV and they are about to file an offer of compromise to knock off approx. $15K from the bill. The problem is, my friend says the attorneys overstated his monthly expenses by about $2K. He's afraid if the IRS really looks closely, they will get audited and the situation will worsen. The wife, who handles all the bills, just wants to get it in and move on.
My question is, how likely is it that the IRS will not accept this offer and is it a case where they would just say no and then have to come back w/ a new offer or would they be punished some how?