I have a question and need advice...
I have a family member who owes 25,000 in back taxes to the IRS. Ok, I don't know how long he's owed the IRS, but he did find a company who negotiated with the IRS and has it down to $7500 which is pretty darn good. however, he does not have the money to pay the $550 a month for 15 months and has told the company who negotiated this deal that he can't afford that kind of money. well that company said he's refusing to cooperate when all he's saying is that i just can't afford that much but will pay what he can. this family member is in sales and so his income is unpredictable to say the least. I believe the company wants to see a couple of paystubs and it just so happens that the couple of months they want he did ok financially on.
I think he's going to see if they can get a 'year to date' figure rather than some monthly figures. anyway, my question is this:
What can he do now? Like i said he's dealing with a company on this but I think he needs legal counsel. I'm assuming that his back debt has accumulated over the course of a couple of years at least. but that's just speculation.
Additionally, they threatened him with jail time (IRS) if he doesn't pay.
He has no assets for equity for a loan, and no one will cosign for him. Another family member offered to give him maybe $3000 to help towards the cost maybe lowering the monthly payments? do you guys see any repercussions to this plan?
I was confused as to what category to put this under, i'm guessing that this is a collection agency as i've read in this forum that the IRS does hire third parties to get back the money owed from people.
my husband and i disagree on this, i say he can go to jail, hubby says there's no debtors prisons. I fully believe you can go to jail for not paying taxes...
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Debt, something doesn't seem quite right with this story.
First, the IRS will not consider what they call an "offer in compromise" unless the taxpaper has a low collection potential.
Also,Under a repayment plan, a tax-payer has 60 months to repay the taxes.
How does this Company your relative is dealing with think he can make 550.00 a month payments, if his financial situation is such he qualifies for an "offer in compromise" with the IRS.
I agree with the other opinions here.
:idea: Advise your relative to deal directly with IRS. :idea:
The IRS has an excellent web-site full of information that answers most taxpayer questions.
http://www.irs.gov/taxtopics/index.html
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I echo all of this great advice and would also suggest even working with someone who is an "enrolled agent", a licensed tax preparer who has the qualifications to deal with the IRS on your behalf. I also owe back taxes and can tell you from painful personal experience that it does not pay to ignore them. It doesn't go away and it's best to file the returns and deal with it.
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I know someone who owes back taxes to the IRS. She had unfortunatly hit a rough patch in her life with an old employer and she hasn't ever been able to get back to the financial standing she had. She bought a cash car and put it in her name and before you know it the IRS has now a lein on the vehicle. She had a checking account at one time and they were withdrawing funds from the account.
You don't mess around with the IRS. They are very serious. Work something out as soon as you can.
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The IRS will gladly work with most people to resolve taxes. But if you ignore them, they can be like the KGB.
The science is in knowing, the art is in perceiving - Robert Fripp (1946-)
Ever get the feeling you've been cheated? - Johnny Rotten (John Lydon) (1956-)
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Hi All...again thank you for the support and advice. I'm going to tell our relative to deal directly with the IRS...Reesie...really appreciate that site! any help like that is great, need all the resources for this issue. unfortunately at this time i don't know the name of the company he is dealing with. there's lots of unknowns here and i'm hoping to get this cleared up as soon as possible. we all hope that
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Here's my rant on this issue:
Now I am all for paying taxes and lord knows I have had a ton withheld this year--but why is it that a person such as myself can claim Married-0 (not even claiming myself, sportsfans, let alone my kid and disabled husband...) and STILL owe friggin' taxes?????? What is wrong with this picture?? Why can't I claim myself at least??? Just venting.....
debtstinker I have heard of cases where people are imprisoned for knowingly misrepresenting their obligations of taxes due..but haven't heard of jail time for people who didn't pay because they didn't have the $..usually they wait and then consfiscate future money..and they normally don't target individuals with no means to pay..too many people are afraid of the I.R.S..yet they are very helpful working out payment plans and if they result to putting leins on cars?...not sure what may have happened there..they are our tax representatives and are supposed to be here to help even when you haven't paid what you owe..most people get in trouble with them because they mistate what they owe or don't want to pay what they really owe..I too used to be afraid of I.R.S. until an enrolled agent as ks referred to above explained that no one should fear the I.R.S. as long as you pay what you owe or don't try to avoid obligation..you have nothing to worry about..and of course they are serious they are doing a job and have proof of any debt you might owe before going after you
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I would work with the irs directly, I owe them around $1000 and they are willing to take $100 a month, they were supposed to start in October but they haven't, the ball is in there court now. I signed the papers but they have not taken any money or attempted to yet.
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Fed,did you send them the first payment along with the fee for setting up the payment plan.
This is what I was told to do.
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Fedup- check with them and make sure that you weren't suppossed to send them anything, like Reesie said-that's what I had to do too. Also, I paid them over the phone every month..karen :D
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