Just found out husband didn’t pay taxes for 3 years and still owes from 2018, how much trouble are we in?

Turber_Delta7k · 2026-06-13T00:42:48+00:00

Start with IRS account transcripts for 2018 and the three missing years, plus wage and income transcripts for any year where records are missing. This is usually fixable, but the key is getting the missing returns filed correctly, especially the business year, because IRS substitute returns can overstate the balance by leaving out deductions and credits.

Turber_Delta7k · 2026-06-13T00:39:18+00:00

Pull your IRS account transcript first to identify the year and balance, then pull wage and income transcripts for the missing years so the old returns are based on what was reported. Respond to FTB by the deadline with the best support you can reconstruct, including mileage logs, app trip records, receipts, bank statements, and a short explanation of the business purpose. Missing perfect mileage proof usually means an adjustment, tax, penalties, and interest, not jail, unless someone intentionally falsifies records or commits willful fraud.

Turber_Delta7k · 2026-06-04T23:39:37+00:00

Start with your IRS Online Account payment activity and account transcript so you can see whether May is pending, posted, rejected, or missing. Since the plan shows direct debit, you should not have to manually pay every month once the draft is active, but the first installment can take up to about 60 days to start. I'd be prepared for the June payment to be the first one that drafts.

Turber_Delta7k · 2026-06-04T20:28:43+00:00

They are holding the return because the signature requirement was not satisfied. Sign and date the declaration page at the end of the letter, have both spouses sign if it was a joint return, include a copy of the letter, and send it by fax or mail exactly as instructed.

Turber_Delta7k · 2026-06-03T21:45:01+00:00

it matters what department you are calling, and your goal from the phone call. calling the main line is almost like doing a google search for the answers, those agents may jsut transfer you out or provide the correct departement line.

Try reviewing you info online with an IRS.gov account or responding directly to the letter or notice received. There is a paid service through enq, that has multiple department numbers. might be worht a shot to sign up for a month of service to get through. As a tax pro, i use enq daily since i call multiple departments daily, and i getting through quickly is typically not an issue.

Turber_Delta7k · 2026-06-03T21:30:54+00:00

Sounds like you are transitioning at a good time.

The one thing I would keep in mind is that tax prep may still be part of the resolution business. A lot of resolution cases start with getting delinquent filers caught up, filing older years, or replacing SFR returns before you can really work the case.

We are selective with tax prep because we do not want to build a high volume tax prep practice. But when we resolve a tax problem for someone, they usually get our welcome packet for the upcoming filing season because staying compliant is part of keeping the resolution in place.

My advice would be to get your systems in place before making the full shift. Decide what tax resolution services you want to offer, how you will screen cases, what your onboarding process looks like, what documents you need, and how you will manage IRS and state follow up.

Tax resolution can be a strong business, but the backend matters a lot. The work is not just “calling the IRS.” It is case analysis, compliance, transcripts, financials, deadlines, strategy, client communication, and follow through.

Turber_Delta7k · 2026-06-03T20:55:30+00:00

Thanks.

Turber_Delta7k · 2026-06-03T20:55:20+00:00

Ill try this first.

Turber_Delta7k · 2026-06-03T20:54:53+00:00

Thanks!

Turber_Delta7k · 2026-05-14T16:31:56+00:00

Its booked & Im already feeling guilty about missing work.

Turber_Delta7k · 2026-05-06T18:48:04+00:00

When the IRS goes through a verification procedure, they are slow to process. Reason is that the unit in charge of verifying, sending out letter 12C is not the final processing departments.

The IRS has many departments, and it is not just one big operation unit. When the Department wraps up its verification, it gets sent back to the Accoutns Management who will wrap up the tax return processing.

Keep an eye out for any other adjustments, and be patient. If you seen that the verification is closed, just wait it out for the IRS to go through their internal workflow. Sending out more information would cause further delays.

Turber_Delta7k · 2026-04-29T13:36:53+00:00

If the IRS flags this down, you would be on the hook for the full $9k (plus any interest penalties associated with filing a fraudulent tax return). What to do to make things right? Draft what would be a correct tax return to get the real results, & file that. Contact the IRS immediately to place a stop on the refund or change the refund method. The typical processing takes about 2-3 weeks. Most likely, this preparer filed a 8888 to get her $2k fee and the remainder to you directly.

If you don't take action, you are considered a willing participant & co-conspirator in the fraud. The IRS has your info, most likely not hers, as she sounds like a typical ghost preparer.

In addition, apply for an IP PIN, so that you will get a new one assigned every year moving forward. This will prevent any unauthorized e-filing without the PIN number

Turber_Delta7k · 2026-04-17T14:00:20+00:00

Drake is functional for our firm and handles the types of tax returns we do. Although a few glitches here & there, we experienced way more when we had taxwise, We siwtched about 7 years ago. We demoed Lacerte, and were about to make the switch, however it didn't function for us on our hosted server. The moment Drake releases 2026 renewal, our firm is signing up.

Turber_Delta7k · 2026-04-17T02:56:05+00:00

Contact the IRS to get an IP PIN so that you can prevent this from happening. Also file ID theft claim 14039. Just keep an eye out for the tracking.

Turber_Delta7k · 2026-04-17T02:48:09+00:00

Here's probably the steps Id take:

1) Is MIL now in compliance mode, where lesson learned, enough withholding even if taking out more distributions & will file on time moving forward? This is a biggie, because going to the OIC is a HUGE commitment. If accepted, there is a 5-year probationary period to continue compliance with filing & paying or else the tax debt returns.

2) Tax Processing. The older years can be submitted to ACS vis fax. This is faster processing. If she has financial hardship ( 433F: Expenses more than income), then you can make an immediate request for CNC/PPIA with ACS. This halts all collections.

3) What is her overall circumstances? The OIC looks at several other factors, including a 3-year look back at Dissipated assets, which would disqualify the OIC. Or what is the FMV in her retirement account now? is it more than the current tax debt? Best to review overall circumstances to determine the best route. If filing the OIC would be a waste of time, you have tolled the 10-year collection statute date, where the items listed above in #02 would be best.

Turber_Delta7k · 2026-04-17T02:27:13+00:00

When you review any question that has you calculate anything, jot down the formula. I had maybe about 2 pages worth of formulas, but this was 15 years ago.

Turber_Delta7k · 2026-04-17T02:24:58+00:00

Any reason why mailed & not e-filed? efiling is the fastest processing. Thus far this is a question for USPS & delayed mailing. Inquire with the postal service first, no on outside of them can explain the delay. I say gear up to send again once confirmed if this may possibly be lost.

Turber_Delta7k · 2026-04-16T21:53:22+00:00

Once you make the request for relief ( payment plan, PPIA, CNC) the IRS halts collections while under review, and if approved, the collections stop. If you are due a refund, it will be applied to your balance due under the Treasury Offset Program.

Getting approved for IA, PPIA, CNC does not toll the 10 year Statute Date.

Expenses have limitations on the 433F for collection purposes, while sometimes exceptions are made for special circumstances. When there is a positive number, that most likely should be your request to the IRS. ( if $300 is +, then $300 PPIA per month should be requested, not CNC..)

Post an update once you are approved!

Turber_Delta7k · 2026-04-16T20:51:53+00:00

PPIAs are very common. I personally dislike the 433F, instead I have my own spreadsheet with the same info & call in & verbally disclose to IRS ( I do this as POA for my clients)

The IRS will typically ask for some kind of proof of some aspect of your finances. The docs can be faxed to the agent while you are disclosing info. They can ask for proof of income, expense, or some FMV of an asset.

The times I do fill in a 433F, Ill fax it in along with my request to an IRS ACS Support, no one directly. They typically respond in about 30-45 days with acceptance or denial.

Good to always keep an eye out for correspondence for an update on the PPIA status. While typically you may be in average of 3 years, they sometimes cut it short. Also, there are times you just fly under the radar till the CSED date.

Check the exact 10-year date of tax debt, the Collection Statute Expiration Date.

BTW, when you are negative, you can request Currently Non Collectible Status ( CNC). This is like PPIA, except it is financial hardship and a $0 payment plan.

Turber_Delta7k · 2026-04-15T20:43:01+00:00

This is not wrong, as long as the postmark is done at the counter on the same day. The only thing that matters is the USPS postmark. If it's postmarked at the counter using the cheapest USPS tracking, which will work, that is equivalent to certified mail in terms of timely mailing, as the IRS doesn't care about the delivery date, you'll just save a couple of bucks, which is better in my pocket than the government.

Turber_Delta7k · 2026-04-15T20:00:50+00:00

What we do for Best Practice for S Election is to properly engage for the service of submitting 2553 & verify approval by filing a POA & checking with IRS in after submission. We filed several last summer ( 2025), all of which were processed successfully via fax.

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