<Sailor_Jim2002[at]Yahoo.Com> wrote:

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I would definately get professional advice. That person is
very likely to save her much more than he/she charges. If
you can document a "nervous breakdown" its possible to even
get some/all the penalties abated.

Mike Lewis, CPA

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<Sailor_Jim2002[at]Yahoo.Com> wrote:

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Prepare the true return.

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Prepare the true return

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Maybe, consider a CPA or EA first.

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One might help, but they cost money, things to consider,
Are any assets left that are at risk of being collected upon?
Has any criminal activity occured?
Does she need help preparing the true return.
Does she need help seeking penalty abatement?

- quote -

Assuming she has had no income 2001 to 2004 this might be
moot, but she might consider filing these returns also. If
nothing more, it will indicate her current ability to pay
the true tax due for 2000 is currently --ZILCH--.

Given the amount owed as it is now, I suspect she me be
personally contacted (face to face), she will be asked to
provided a current financial statement form 433-A, most
likely the tax liability will be suspended from current
collection activity.

Once this is done, she will feel relief, it may even be
enough to get her over the current state of mind, and
debilitated condition.

Once she does get back on her feet, the form-433-A financial
reviews will be repeated every year or so, at some point she
might be able to pay all or a portion of the true tax debt,
or qualify for offer in compromise form-656.

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Okay, here's the story:

Young lady having a nervous breakdown files for an extention
for her 2000 filing, then forgets to file .. period. Her
total income was around $170k, most of that from sale of
stocks. Standard deduction and exception, with an IRS
listed pre-paid credit of just over $4k. (But also had a
morgage interest of $10k and a student loan interest of
around $500.)

Okay, with Failure to File, Failure to Pay, and Estimated
Tax Penalty added in, the IRS is hitting her for around
$65k.

Right, then ... I know one of the first things that we
(she's my daughter) have to do is file for 2000 and get her
interest deductions included, but that's about it. She's
still on the mend, has been unemployed for the last two
years, and remembers bloody zilch about that entire year.
(Lost job, house, possessions ... not a good year a'tall.)

So what do y'all advise as step one? We've already
contacted the IRS and gotten a copy of all the offial
paperwork, including W-2's and 1099-B's and 1098's ... but
now what? Should we get a tax attourney? Would one really
be of help at this point? Even with every deduction we
could possibly scrape up, she's still going to owe one hell
of a lot of money and it doesn't look like she'll be going
back to work anytime soon.

Any advice? (Other than prayer, that is.)

Jim

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