I am looking for some guidance... I was in the mortgage banking field from 2001 to 2006... made a lot of money and have only filed taxes up to 2004... I owe the IRS $160,000 in taxes and about $25k to the state... I was laid off by my employer... and am currently receiving unemployment benefits... my house in in foreclosure, and my life is not really good right now... I am working with a Tax relief firm, but don't have the monies to pay for a CPA to complete my 2005 and 2006 returns... I have already requested a hardship relief from them and have qualified, but need to file the 2 years of taxes... I was told if they are not in bu 10/15... the IRS may levy my bank accounts... in that case how do I proceed... Does one suggest speaking with the IRS directly and emplain my situation and ask for more time to get the returns filed??

Please help... Roo:confused: :confused:

You do not have $250? If you can put together $250, I will prepare the two returns for you. This is not my normal rate for someone with the type of returns you are citing, but I can cut you a break.

If interested, contact me at the email address below.

If not, call the IRS and ask if someone with the Volunteer Income Tax Assistance Program can help you.

Hi Rooster, did you find your resolution?. I am in the same position with freakishly similar industry and financial tax implications, IRS says I owe 160k, worked in mortgage industry, didn't file taxes for 2004, 2005, 2006.

TaxSolution01:

Look at the date of the original post: I doubt that he will answer after 2.5 years.

Second, contact a local tax professional and get help to file the returns. What the IRS did is file the returns FOR you using the worse possible filing options to generate the HIGHEST possible tax. This is done to get your attention, and it has apparently succeeded.

A competent, experienced tax professional (suggest you use an enrolled agent, because an EA can negotiate on your behalf with the IRS) can amend these IRS-generated tax returns and reduced the tax bill significantly, then represent you to get the penalties waived (by law, interest CANNOT be waived).

If the bill is so high that you cannot pay, the EA can also prepare and present an offer in compromise to get the tax bill reduced.

Expect to pay the EA a fee in the $1,000 - $2,000 range, but he/she will EARN the fee.