Background: My parents own a medical office and have a combined income around $500k. They pay quarterly estimated taxes. From November 2016 to February 2017, they were almost always in a foreign country with my mom's mother, who was in a coma after getting in a car accident. She eventually passed.
Fast forward to a couple days ago: An IRS agent visited their house, stating that they owed $113,000 in back taxes. He also said they needed to get that balance to $50,000 within 10 days to avoid a lien.
The situation now: My parents have enough cash to get the balance to $50,000. Their home is currently on the market, so they definitely want to avoid the lien. We are wondering what steps to take to get back on track.
My questions: Assuming they can get the balance to $50,000, how do they go about paying that remaining balance? The IRS agent offered an installment plan, but I'm not too sure about the details of the plan. Also, how should they plan on paying their 2017 taxes and get back to par? They haven't been paying the quarterly estimate in full and likely owe quite a bit.
(I've been following this subreddit for some time, but this is my first time posting. Please let me know if you need more info. Thank you all very much.)
EDIT: I found out that they received certified mail from the IRS before. Their accountant confirmed the taxes owed are legitimate. I think that they are heading in the right direction. The visit seemed to shock them into action. Thank you all for the responses. I read most of them to them over the phone.
Submitted August 30, 2017 at 01:25PM by SnapAction http://ift.tt/2wThMOw
