Lawyer to consult re: IRS

[domaingeneration]

A domainer just received a letter from IRS, re: a domain sold some time ago, asking for a huge amount. He contacted me and I'd like to refer him to a lawyer here. Which members do you recommend?

Thank you,
DG

 

[DNQuest.com]

Would it not be better to contact a tax attorney? And he should ASAP.

 

[domaingeneration]

Any recommendation? Thank you.

 

[jberryhilljberryhill is verified member.]

There are no tax attorneys here of which I am aware.

 

[Deleted member 70408]

domaintaxguide.com

 

[ebatcave]

Out of curiosity, what is the issue? Was the domain sold but the gain wasn't reported?

 

[Gerry]

oh, this is going to be fun. :approve:

 

[south]

What a pain...

We need to can the IRS and go to a flat tax based on consumption... Too many confusing rules that can be changed or interpreted differently by each IRS examiner.

 

[socalboy]

I don't doubt the letter from the IRS, as they've recently instituted new software, and a lot of people are getting letters.

However, maybe the domainer should start with a reputable accountant. It may be advisable to amend a number of years to recategorize various domain expanses in order to minimize the tax bill. The IRS will grant some time for him to refile if necessary, but he should not delay. He should also get his records organized.

Reading between the lines, it sounds like he didn't report a capital gain. It could have been unintentional or intentional. Deliberately hiding income is tax fraud, and the IRS can and often does seek criminal penalties.

Once he knows where he stands, there are a variety of avenues to take. The IRS allows installment payment plans over time. He can request this himself. You can also negotiate for a reduced settlement of the amount owed. There are local attorneys who specialize in this. Finally, if he fraudulently hid income, he may need to find a good criminal defense attorney.

 

[domaingeneration]

Thank you for all the replies.
His wife is an accountant and he reported the sale as capital gain. However, somehow IRS didn't seem to accept it as 'capital gain'.
A friend has recommended good attorneys to me and I'll let the domainer know.

Take care everyone,
DG