So I am in some deep waters with the IRS, I didnt file for about 7 years and they now want me to file

[newbieshore]

I am honestly worried this could destroy my life and hold me back for 2 decades, I must owe around 500k once all filed, they now want to see my wifes income as well, bills, savings, bank accounts, and income. I was not doing well at all and my bank statements show it, I barely started doing well again started making sales and I can either run them via my wife or me should I put all income via her ? I have a young daugher, we just got a house via an investment I had that I sold, all these problems with IRS were before I got married to my wife.

I will most likely have to pay them monthly but I am scared they will want a high amaount and with a mortgage and bills and a kid this will crush me I do plan on doing a letter of compromise

Has anyone been in this situation ? Any advice ? What steps did you take so that the IRS gave you a low monthly bill and settled for a lower amount in the future. Your advice would be HIGHLY appreciated.

(I did hire an attorney but not sure if it will help)

I have a piece of land that if I sell I can offer that profit to the IRS, just waiting for it to sell.

 

[ChadMuska]

Did you forget your user credentials? https://www.offshorecorptalk.com/threads/abandoned-llc-troubles-visiting-us.46533/#post-329136

Either way, you have my sympathy. The US’, scandinavian countries’ and the Spanish’ tax authorities are the ones you would want nothing to do with at all. 500 000 usd because you forgot to file is ridiculously harsh, 25k is already steep as it is. I was surprised what @Martin Everson brought up.

Good news for you though is that Russia is looking for westerners at the moment. And being in debt isn’t a crime, so I’m not sure if they’ll deny you residence because of it. Maybe that’s something you can look into.

 

[Davis123]

Did you forget your user credentials? https://www.offshorecorptalk.com/threads/abandoned-llc-troubles-visiting-us.46533/#post-329136

Either way, you have my sympathy. The US’, scandinavian countries’ and the Spanish’ tax authorities are the ones you would want nothing to do with at all. 500 000 usd because you forgot to file is ridiculously harsh, 25k is already steep as it is. I was surprised what @Martin Everson brought up.

Good news for you though is that Russia is looking for westerners at the moment. And being in debt isn’t a crime, so I’m not sure if they’ll deny you residence because of it. Maybe that’s something you can look into.

You want this poor guy to move to Russia like Edward Snowden ? . Maybe he can get a good tax attorney for plea bargain.

 

[Davis123]

I am honestly worried this could destroy my life and hold me back for 2 decades, I must owe around 500k once all filed, they now want to see my wifes income as well, bills, savings, bank accounts, and income. I was not doing well at all and my bank statements show it, I barely started doing well again started making sales and I can either run them via my wife or me should I put all income via her ? I have a young daugher, we just got a house via an investment I had that I sold, all these problems with IRS were before I got married to my wife.

I will most likely have to pay them monthly but I am scared they will want a high amaount and with a mortgage and bills and a kid this will crush me I do plan on doing a letter of compromise

Has anyone been in this situation ? Any advice ? What steps did you take so that the IRS gave you a low monthly bill and settled for a lower amount in the future. Your advice would be HIGHLY appreciated.

(I did hire an attorney but not sure if it will help)

I have a piece of land that if I sell I can offer that profit to the IRS, just waiting for it to sell.

I think you need to get yourself a good tax attorney. It will cost you but you might get help this way

 

[wellington]

I will most likely have to pay them monthly but I am scared they will want a high amaount and with a mortgage and bills and a kid this will crush me I do plan on doing a letter of compromise

Well, first of all reach out to them openly, and say you want to conclude this period amicably for the Gov, and for your family.

 

[GF150]

I don't know if this is possible but, if I were you, I'd try to buy some time, e.g. 2-3 months and see if the new Trump Administration will not, by any chance, look at your case differently. Just thinking....

 

[JohnnyDoe]

This lawyer can help you: https://www.talktoataxlawyer.com/why-talk-to-a-tax-lawyer/our-team/

 

[Davis123]

I don't know if this is possible but, if I were you, I'd try to buy some time, e.g. 2-3 months and see if the new Trump Administration will not, by any chance, look at your case differently. Just thinking....

I doubt it. He is promising to do away with CBT which I doubt tax attorneys and cpa associations will let him pass. IRS knows already we are not worthwhile targets. It’s just these lawyer lobbies who want these laws to make their money plus keeping rich Americans away from fleeing USA like other rich westerners are.

 

[Davis123]

I am honestly worried this could destroy my life and hold me back for 2 decades, I must owe around 500k once all filed, they now want to see my wifes income as well, bills, savings, bank accounts, and income. I was not doing well at all and my bank statements show it, I barely started doing well again started making sales and I can either run them via my wife or me should I put all income via her ? I have a young daugher, we just got a house via an investment I had that I sold, all these problems with IRS were before I got married to my wife.

I will most likely have to pay them monthly but I am scared they will want a high amaount and with a mortgage and bills and a kid this will crush me I do plan on doing a letter of compromise

Has anyone been in this situation ? Any advice ? What steps did you take so that the IRS gave you a low monthly bill and settled for a lower amount in the future. Your advice would be HIGHLY appreciated.

(I did hire an attorney but not sure if it will help)

I have a piece of land that if I sell I can offer that profit to the IRS, just waiting for it to sell.

They want you to file ? Did they write to you regarding it ? Just curious. I know there are several dual citizens who simply disappear and file in their country of residence only.

 

[Alonzo]

Idk why people here act like it’s normal.

You (purposefully?) didn’t want to file for 7 damn years and know you are worrying about your future… Really weird

 

[drysponge]

I must owe around 500k once all filed

I was not doing well at all and my bank statements show it

iirc IRS debt interest rate is ~8% that would need to be ~55k a year in taxes to be 500k? unless you where not doing well at all on a 200k income that doesn't sound right. you will be OK!

 

[Davis123]

iirc IRS debt interest rate is ~8% that would need to be ~55k a year in taxes to be 500k? unless you where not doing well at all on a 200k income that doesn't sound right. you will be OK!

There are penalties too that he is worried about. They rack up little world of forms each of which has its own penalties. All cooked up by tax lawyers

 

[drysponge]

There are penalties too that he is worried about

failure to file & failure to pay cap @ 25% of the debt ea, 9k tax debt for income of ~55k + 50% would result in ~120k debt, no where near the 500k figure op is worried about.
maybe theres property tax im not including that make this worse, if "not doing well at all" means closer to the median 30,000/yr income he may still be under 50k penalties included.

making a lot of assumptions here ofc, but idt the outcome will be as life ruining as OP believes and the stress is only going to cause interpersonal issues in the family & making dubious moves like switching your business to your wifes name

 

[ChadMuska]

failure to file & failure to pay cap @ 25% of the debt ea, 9k tax debt for income of ~55k + 50% would result in ~120k debt, no where near the 500k figure op is worried about.
maybe theres property tax im not including that make this worse, if "not doing well at all" means closer to the median 30,000/yr income he may still be under 50k penalties included.

making a lot of assumptions here ofc, but idt the outcome will be as life ruining as OP believes and the stress is only going to cause interpersonal issues in the family & making dubious moves like switching your business to your wifes name

You're missing what @Martin Everson wrote in OP's first thread: https://www.offshorecorptalk.com/threads/abandoned-llc-troubles-visiting-us.46533/#post-329136

Guide is below and its actually worse than you say....lol.

https://oandgaccounting.com/resourc...g-your-guide-to-forms-5472-and-proforma-1120/


https://www.thetaxadviser.com/issues/2021/jul/penalty-relief-forms-5471-5472-8865.html

---- quote start

A failure to timely file a Form 5472 is subject to a $25,000 penalty per information return, plus an additional $25,000 for each month the failure continues, beginning 90 days after the IRS notifies the taxpayer of the failure, with no maximum penalty.

---- quote end

If the LLC gets dissolved after two years of not filing then that will roughly be around 500 000k USD, and the 8 percent interest rate is not included here.

 

[drysponge]

You're missing what @Martin Everson wrote in OP's first thread: https://www.offshorecorptalk.com/threads/abandoned-llc-troubles-visiting-us.46533/#post-329136

in what way are these threads related?

 

[koohl]

Either way, you have my sympathy. The US’, scandinavian countries’ and the Spanish’ tax authorities are the ones you would want nothing to do with at all.

I can't agree more with you!

 

[JohnnyDoe]

The U.S. Tax Code is made of about 76,000 pages, including regulations and guidance from the IRS. For sure, you can’t even think of DIY. If you play the game well, it allows you to get rich. But it’s a team game.

 

[Davis123]

The U.S. Tax Code is made of about 76,000 pages, including regulations and guidance from the IRS. For sure, you can’t even think of DIY. If you play the game well, it allows you to get rich. But it’s a team game.

Who wrote these codes ? Tax lawyers wanting to get rich by creating complex codes so they can show their rich paying clients how to save money legally

 

[JohnnyDoe]

Who wrote these codes ? Tax lawyers wanting to get rich by creating complex codes so they can show their rich paying clients how to save money legally

Everyone deserves a piece of the cake.

 

[Martin Everson]

Has anyone been in this situation ?

No

Any advice ?

No

I must owe around 500k once all filed

That's not small money. How did you come to that figure even?

The article below in link you could read.

https://www.findlaw.com/tax/tax-pro...you-dont-file-taxes-for-10-years-or-more.html

----- quote start

What Is the Failure To File Penalty?​

Any taxpayer who has not filed their federal income tax return by the due date — for most years, it's April 15 — is subject to the Failure to File penalty. If you file after that date, you will be subject to a late filing penalty. In addition, if you owed taxes as of the due date, you will be assessed a separate failure to pay penalty or a late payment penalty, depending on whether you don't pay or pay late.

The Failure to File penalty is 5% of your unpaid taxes for any month, or part of a month, that a tax return was late. The total penalty can't exceed 25% of your unpaid tax bill. The failure to pay penalty is only 0.5% of your unpaid tax bill for each month, not to exceed 25%. If both the Failure to File and failure to pay penalties apply to the same month, the failure to file penalty drops to 4.5%. As a result, when both penalties are applied, you will still owe 5% per month, up to a total of 25%.

If you owe money to the IRS, you will also owe interest to the IRS that is assessed for each month your taxes are unpaid. Interest is also charged on penalties and additions to tax. The interest rate is the federal short-term rate plus three percentage points, which was 8% in 2024.

Can Failure To File be a Crime?​

While the IRS can impose penalties for Failure to File or failure to pay tax, they may also be crimes that could result in criminal charges of jail time. The IRS recognizes several crimes of tax law related to evading the assessment and payment of taxes. Internal Revenue codes are designed to punish those trying to take advantage of the tax system.

Any willful attempt to evade taxes can be considered tax evasion, which is punishable by up to five years in prison and $250,000 in fines. Unlike situations where it is just trying to collect taxes owed, the government only has a limited time to file charges against you if you don't file. The statute of limitations for tax evasion or related charges is generally six years from the date the unfiled return was due.

For most taxpayers who don't file, the IRS must show you were not filing taxes intentionally to prove tax evasion.

---- quote end

P.S Sadly not filing tax returns for 7 years is never a good idea if you were required to do so.