AboutMike Wellman Expertise 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 referred to the question pool.
Experience Over 25 years experience in taxation specializing in IRS collections, examinations and appeals.
Publications New York Times, Wall Street Journal, Your Money.
Education/Credentials BBA, Baylor University.
Awards and Honors IRSOS.com won the Knowledgeweb award for educational excellence for content.
Expert: Mike Wellman Date: 12/11/2007 Subject: delequent tax returns for contractor
Question I know someone who hasn't filed a tax return in several years. He has worked as a subcontractor in home construction and hasn't received any W-2 wages - only 1099s. What should he expect when he finally decides to address the unfiled returns. His income is small - less than 30,000 a year, single, and no dependents.
Answer The first thing he may find out is that the IRS has filed some of those returns for him based on the 1099's. He will need to file those returns so he can claim expenses as well as any not filed for the last six years.
Despite only making $30,000 per year, he could owe a sizable amount because of self-employment tax. He will have to deal with the collection issues after all the returns are filed. This could mean an installment agreement or perhaps an offer in compromise. My web site has a vast amount of information on the subject. Go to: http://irsos.com/delinquent_tax_returns.htm for a lot of free information.
