IRS Debt

Great site/forum and thanks to those who have taken the time/effort to put it together.

Now on to the "fun" part---IRS Debt.

About 4 years ago, I owed the IRS around 17,000 and set up and installment plan which I stayed on for awhile. Then I had some really bad years re other debts, etc....fell off the plan for a bit. Then when I contacted them they actually said my income was so low that I didn't have to be on the plan for awhile until it increased enough.

Problem is I made things worse by:

---not filing for the last 2 years.
---working alot of Freelance jobs, so I'll owe even more.

Up till now, I seemed to have fallen off their radar (just one notice last month after 2 years asking me where my tax returns are) but we all know when they come back---they come back with a fury.

So---anyone know anyone reliable who can help me file those taxes AND deal with the IRS so at the very least I can find some way to settle with them? I don't want to do an offer and compromise if I can avoid it---married, too much scrutiny, etc. But are there companies that are reliable, who, like the credit negotiation companies, can work something out...

..and also deal with my even more recent boo boos.

Whew---that was too long...but thanks for readiing.

Hi db. Have you spoken to an atty about all of this. From what I understand you might be able to get your amount owed decreased with some legal assistance. Also, are they willing to set you up on another installment plan?

Hi DB,

The first thing that needs to be addressed is to get those 2 years worth of tax returns filed asap. If you're going to owe, which it sounds like you will, it will default your current Installment Agreemnent with the IRS. Depending on your financial situation, you could POSSIBLY be able to get a settlement out of the IRS BUT more likely than not, another Installment Agreement will need to be made. There are companies that can help with this. If you would like to know of one, please contact me.

Through personal experience I can tell you that it is very very difficult to get the IRS to agree to/accept an offer in compromise. I had liens and garnishments and after working with one of those companies finally got a formal payment plan in place. The company told me that they thought I had a good shot at it or possible penalty abatement, etc, however they wanted an additional $5000 on top of the $5000 I gave them initially to go ahead with the paperwork. Needless to say I cut my losses right there and will be paying $1000 a month for the next 5 years to settle my debt.

If you owe back taxes...a friend of mine hooked me up with Phoenix Tax Solutions. They were able to settle my debt at a low cost. Check out the website. The staff was friendly and the process was a piece of cake.