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After the IRS accepts my offer in compromise (OIC), what are my obligations?

Once an offer in compromise is accepted and you are paying the compromised amount off in installments, it is more important than ever that you maintain compliance with your filing requirements, estimated tax payments, and any and all payments for the offer in compromise. Failure to do so even once may result in your offer in compromise being rejected entirely and you will owe the amount you did before minus the payments you already made.

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My financial silent partner has had sole control over the corporate bank account and has misused the corporate monies, creating tax liability mess. Am I responsible?

If your silent partner in your corporation has mismanaged corporate funds, the funds you invest in the corporation may be used to pay unpaid taxes from periods in which you held stock in the corporation. If you are aware of errors in accounting or tax payments in a corporation in which you hold stock, contact an experienced business attorney immediately.

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Do I still owe taxes even if I’ve never received a tax bill?

Even if you have never received a tax bill, you still owe any taxes due to you. As long as you are working legally in the United States and/or own property in the United States, you have the obligation to file your income taxes and pay your tax bill each and every year, along with any other applicable taxes for your state and your local community, such as property taxes.

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Who is most likely to be audited?

IRS audits are among the most feared situations for most taxpayers, in part because they are so invasive and carry with them the potential for back taxes to be assessed, as well as the potential for additional interest, fines and other penalties to be assessed. Fortunately, there are far more taxpayers than there are IRS employees available to do audits, so the IRS must be choosy about who it decides to audit in any given year.

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What happens if you forget to mail your W-2 forms to the IRS?

Forgetting to send tax documents with a tax return is a common occurrence. You can rest assured that no adverse action will be taken against you for forgetting to attach a W-2 form or other forms as long as you submit the forgotten tax documents when the IRS requests them. Generally, the Internal Revenue Service (IRS) considers most tax returns filed as valid and may or may not require taxpayers to submit additional tax documents.

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How are capital gains taxed?

A capital gains tax is essentially a tax on a profit made from the sale of a capital asset, and is assessed depending on the nature of the asset sold. For example, if you sell a rental house at a substantial profit, the proceeds would be subject to a capital gains tax. Capital gains taxes do not cover the general sale of inventory, so if you operate a small business out of your home the proceeds on the sale of your product would not be subject to a capital gains tax.

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How do I report someone who is not filing tax returns?

If you believe that someone is violating federal tax laws, the best way to report to the IRS is by filling out a 3949-A form. Fill out and print the form and mail it to the Internal Revenue Service Center, Fresno, CA 93888. Another way to report IRS fraud is to call the IRS at 1-800-829-1040 for the Criminal Investigation Hotline in your area. Failure to file tax returns is a form of tax evasion. Tax evasion amounts to using illegal means to avoid paying owed taxes, and is a federal crime.

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