Several Years Owed, Installment Plan

[WhiteOleander]

You can become an "agent" (can't think of the correct term) for the IRS to process tax returns and other info for immigrants so they can get a TIN # to process tax returns.

One of the preparers in another office did go through all the hassle to sign up for this. After working with the clients for a few months, he quit doing it. He said it was a big problem getting everything just right for the IRS and immigration. It took way too much time from his tax prep. He couldn't charge enough!!!!

[taxea]

Several Years Owed, Installment Plan

I wouldn't have a problem with getting a ITIN for the client in order to file his taxes but would steer clear of anything not tax related.
I don't even start compliance work without a hefty retainer up front.taxea

[JohnH]

I guess I just thought he wanted me to do it because I am doing the taxes also. He says he knows of businesses that do this but it was hard for him to get off work. Most of them close by 5pm. He seem to be suggesting that I could get alot of customers if I offered to help with the immigration because I am opened later than most businesses.

He was recommended by a very good customer of mine. This customer has relatives that have also asked me to help them with the immigration stuff... as well as friends of his. I think they believe because I can do taxes I can do that also. All of them found someone else to help them with this.

This new customer that is so behind said there was an accountant in town that was doing this. I asked him if he was sure it wasn't a lawyer. He said no a "tax person".... but with the language barrier it might be a lawyer who prepares taxes.

If you talk to him about it again, you can ask him if the person is an "abogado" (or "abogada" if female). That's usually the term for a lawyer, although sometimes "licenciado/licenciada" is sometimes used. There are several words for tax person, including "contado/contada", "contable", or "contador". Others who speak better Spanish than I can give you other terms, I'm sure.

[Black Bart]

A little speculation

About the C corporation -- a Mexican man and his wife came by the office year before last with a 1099 made out to a C corp -- no other papers, expenses, or anything. I wondered why anybody would create and get involved in a complex corporate tax return when their $30,000 income level didn't justify it and things were maybe already complicated enough just with immigration issues.

I didn't take the case (no longer do corporate work) but asked why they incorporated. They said he could not get an SSN (illegal immigrant, I assume) and, except for cash odd jobs, employers would not hire him without either a SSN or federal EIN, so he paid somebody to get an EIN and incorporate him -- thereby solving his employment problems. As I recall SS-4 forms require a corporate officer's name and SSN, so I don't know who they listed (maybe the wife had an SSN). But, basically, a corporation did not really exist -- no assets, liabilities, books, records, minutes, or anything else other than a federal ID number. The corporation was really just him doing manual construction labor and an EIN will work since most contractors 1099 everybody as contract labor to avoid payroll taxes.

He may have come to you because those lawyers probably charge them an arm and a leg and you're cheaper even at a thousand bucks. One problem though -- when you do get a good-sized retainer they feel like they've bought and paid for you to fix any and all problems they have (including those immigration papers).

[taxea]

Several Years Owed, Installment Plan

When you speak again with the IRS maybe they can verify the SSN. Also I would insist on the name, address, Fed EIN of his employer, determine through questions to your client whether or not he qualified as an employee and then report the employer if appropriate.taxea

[geekgirldany]

Update. Called the IRS PPS. The amount owed is over $25,000 so she said he would have to do a 433F as Ed or TaxEa mentioned in a post. I asked for transcripts, wage, income, and account information on the years owed as you guys suggested. It is being sent through TDS. She would not print it out herself and fax. Said it would take to long.

This lady was very helpful though than previous ones I talked to. Knew all about the installment agreement, what was need, etc. So it was good to talk to someone who had a little knowledge. The account had been in NonCollectible Status at one point. So someone has worked on it before or he called one.

Oh and the SS# is good.

[geekgirldany]

I am going to keep this all under this one post.

I worked on the C-corp today. When reviewing his prior year return it appears that what he paid himself out of the C-Corp was put on a Schedule C on his personal return. He never did any payroll of any kind. I know this is not correct and I have never done it that way.... but I feel like that is the only way I can do it now. I could say it is dividends but it really should have been payroll... What do you guys think?

I know its a mess!

[geekgirldany]

Boy EFax sure is helpful when you get over 50 pages of account information.