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Tax Law (Questions About Taxes)/Owe back taxes from the year 2001


Hello, hope you can give me answers, sorry for the long post but I am trying to give you all the facts and information.
Around the year 2001 I worked for a company in Texas that did a 1099 on me and I didn't file that year well the following year I contacted the IRS and told them for 2 years I didn't file and I wanted to find out if I owed they told me over the phone I owed 6,000.00 because of the 1099 and sent me paperwork in the mail. I didn't have the money to pay that and after the call I didn't do anything about it.
The following year 2003 from the same employer he didn't have workman's compensation and I got hurt and long story short he disappeared and I couldn't work due to my injuries. I have spent many years trying to recuperate and finally this year I am going to try and go back to work. I have not made any income since 2003, I have not had a job since that year and not even filed a return since 2003.
I moved in 2003 from Texas to Pennsylvania and have not been back to Texas since. I still don't have any income as of yet(I have been living with my parents all these years and I know they haven't claimed me as a dependent). This year I want to go back to work but before I do what should I do?
Should I contact the IRS and I know that the 6000.00 has most likely increased significantly but explain to them I have not worked since 2003, filed a return since 2003 and not made any income but I want them to send me the information and once working set up a payment plan, or again I ask at this point what should I do? I know this isn't going to solve itself, I was going to go back to work last year and decided not to because of the fact I am afraid once I start working they are going to either throw me in jail or take every dime I make from those fees and I know getting a job isn't going to pay the greatest because I haven't worked in so many years.

The bad news is that the $6,000 will have grown quite a bit. But the good news is that the balance may be written off soon. The IRS has ten years from the date of assessment to collect the tax. Assuming that the liability was assessed in 2002 or 2003, it may be very close to going away. You can order a transcript of account to see exactly when that is.

My advice is to get the transcript and check back here.

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Mike Wellman


I was a former Manager with Price Waterhouse, now PricewaterhouseCoopers, the largest accounting firm in the world. I have had clients in almost every industry and of every size. I will only answer questions dealing with IRS problems such as delinquent tax returns, Offers in Compromise (Tax Settlement), IRS collection matters including installment agreements, liens, levies, seizures, audits, appeals, innocent spouse claims and injured spouse claims. All other will be rejected as "outside my expertise". Visit for information on IRS problems.


Over 25 years experience in taxation specializing in IRS collections, examinations and appeals.

New York Times, Wall Street Journal, Your Money.

BBA, Baylor University.

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