I have a client who owes over $128K in payroll taxes . Her and her husband were the shareholders in the corporation . Her husband passed away and he was the one actually running the business . The business has since been closed and a revenue officer has not yet been assigned . I would like to file an offer in compromise for the payroll taxes due but do we need to still file all the past tax returns since 2012 ? The client is also asking if she can claim losses for all of the monies she invested in the corporation .
Should I file all of this tax returns or will the IRS just concentrate on the payroll that is due ?
Diana, I think the RO will insist on having the returns filed, but that is the time for your client to raise the defense she had nothing to do with the company. Did your client have signature authority?
Yes, my client did have signature authority. I am waiting for her to finish the QB file. She has not filed since 2012. I was thinking of filing the last few years. The attorney is in the process of closing the c corp with the state.
Get get the returns filed. Once the assessments come out the RO will seek to assess the TFRP. Get the bank statements and cancelled checks and confirm the client did not sign checks. If she did then she is probably responsible and then an offer is going to have to be the way to go, if she qualifies.