What can I do if I owe $650,000 in back taxes? 2 Answers as of March 08, 2011In 2008 my corperation took a nose dive and my accountant had not been sending off the irs payments so I owe a total of 650 thousand to state and federal taxes personal and business. What can I do? I dont own anything and only make 27 thousand a year now.
The McKellar Law Firm, PLLC | Norman McKellar
In regards to your federal tax issues, you may want to look at submitting an application for what the IRS calls an Offer in Compromise (OIC). If you (or in this case, your corporation) qualify for an OIC, you would be able to settle your tax debt for less than what you owe. If you cannot pay your tax liability in full, then you may want to submit an OIC based on "doubt as to collectibility." To qualify for an OIC, you (and your company) must be up-to-date on filing your tax returns. My suggestion would be for you to contact a qualified tax attorney to sort through your best options and learn in greater detail about the Offer in Compromise process.
Answer Applies to: Tennessee