IRS Questions

[micha713]

Probblems with a business I owned years ago (over 10). The IRS says I owe $300,000 in back taxes from when they shut me down (late on taxes and bank loan, I filed for bankruptcy). It was a decent business that fell on some hard times and I didnt have the cash to keep it running.

This issue is that they seized property which I cant remmber its exact worth (small office building, land, and a large wharehouse) and accounts receivable owed for over $300,000. I also made large payments on the amount through an attorney 10 years ago. We thought this issue was resolved.

They just came to me now and said I owe the entire $300,000.Two things:

1. they said the accounts receivable is my problem because they werent going to actually collect it. If I was still business I would have collected it, it was a monthly billing cycle, people had to pay or the service would be shut off.
2. they dont "recall" any large payments being made 10 years ago.

What legal action do I have? I know I can prove the large payments eventually, but shouldnt they be responsible for my accounts receivable that they seized? With the accounts receivable and the payments, I am way, way over the $300,000.

[Burke]

We don't dispense legal advice on this board. You need to contact an attorney regarding your options. You can start with the one who handled the bankruptcy.

[ED SMITH]

You need to request copies of your account transcript for each year you them money.
If you can't get it by phone, then you need to use form 4506T.

It will tell you what payments have been applied to your account with the dates. It will also tell you when the last tax assessment was made on your account. Ten years from that date is the statue of limitations expiration (CSED) and any thing due for that specific year is no longer collectible. You will have to add to it the length of time that you were in bankruptcy, as the closkc stops running. So if you were in bankruptcy for 8 months, then 8 months to the 10 years.

It may be that the attorney siphoned off some of the funds for himself.