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Ways to repay the IRS debt and unload your tax burden

Submitted by Vikas on Thu, 01/04/2007 - 01:01
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Hi All,

I hope you find the above resource helpful in paying off your tax dues faster.

Regards
Vikas


I owe around 15k in back income taxes. I had $11,5 of it in a chapter 13 bankruptcy that I was not able to complete do to job loss. I have not filed a tax return since 2004. Can anyone tell me would it be better to try and set up an installment plan with the IRS or to go back into a Chapter 13 bankruptcy? I have talked to one of the IRS tax relief companies that advertise, but they want a $2000.00 fee to negotiate this for me. Could I handle this myself, and also have a concern that the payments will be so high that I won't be able to afford them. I am struggling from going through a period of not having stable employment and still trying to play catch up now that I do have a good job.


Submitted by trinity5048 on Thu, 01/17/2008 - 18:48

trinity5048

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Trinity, welcome! Glad to have you with us. Let's take this step-by-step, OK? The first thing you must do in the long road to resolve this with the IRS is to become compliant and file ALL back tax returns with them. I can tell you from personal experience that they will not even begin to work with you until this is done. You must also agree to file all other returns on time.
You probably could handle this by yourself. Once your tax returns are filed, I would call them back with a figure that you could afford monthly. They will require that the amount you're proposing pays your debt off within a certain number of months, and I do forget what that figure is, sorry.
Since you owe 15g, you will probably have to fill out a financial information form. This spells out how much money you make and what your expenses are.
The IRS will either accept your offer or propose a higher figure.
One other thing you could do is an offer in compromise, where you propose a flat settlement of your debt.


Submitted by kscornell on Thu, 01/17/2008 - 20:58

kscornell

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My fear is that the payment will be so high it will unrealistic for me to comply. What would qualify someone for the Offer in Compromise? I am just now having steady employment since things went wrong for me, had new job for four months. I have also developed some health issues that are probably going to add up to some on going expenses.

Would there be any advantage to going through a tax attorney or accountant rather than trying to do this myself? To be honest I am terrified about this whole thing.


Submitted by trinity5048 on Mon, 01/21/2008 - 16:14

trinity5048

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The IRS will need to take information on your financial situation from you since you do owe 15G. And based on your income, they will propose what you can afford.
Download the offer in compromise info at IRS.gov. I do know that you need to agree to file and pay all other tax debts in the future. Good luck!


Submitted by kscornell on Sat, 01/26/2008 - 17:21

kscornell

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Try this company: XXXXXXXX. They helped out a couple buddies of mine that were dealing with the same problems. The number is (XXX)XXX-XXXX. Call in, and they'll find out if your debt/liens can be worked out with them.
Hope this can help!
Cheers and good luck!!


Submitted by on Tue, 10/21/2008 - 11:13

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In 2004 I cashed out a 401K and made a mistake on my tax return owing the irs 15K. I've been mostly unemployed since then and I find I owe them 20K now and the state (CO) 3k. I have no income at all and I'm not sure how to stop the intereste and penalties from adding up. I'm also considered homeless. I'm feeling hopeless and scared of never being able to take care of this. I don't have a Drivers licence and it's very hard finding a job for any more than 7.00 an hour which my exwife takes all of and then none left for uncle sam. Summary... Homeless, jobless, last tax return 2004, last job one month in two years, jail for 6 months in 2007. Owe 20k as of today. State 3k. Thanks so much. I feel better already.


Submitted by on Mon, 11/03/2008 - 23:24

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I have a wage levy in place (paid monthly), and IRS garnished Dec pay. This has left unable to pay for essential expenses and threat of eviction. I'm comtemplating PDL, although its illegal in my state. I've contacted the TPAdvocate and provided 433A data and other requested information. Outstanding years were filed back in 8/97 and all taxes are up to date. I became disabled after filing outstanding taxes as was unable to resolve this issue, in addition getting bad assistance from a attorney. Any thoughts on the PDL....if I'm going to do it, it needs to be done tonight.


Submitted by on Thu, 12/11/2008 - 16:55

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can they take my income tax ..i been making payments to unemployment so can they come in and take my tax money


Submitted by on Sun, 03/01/2009 - 15:41

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Great letter you put out. If the IRS dont accept your offer will they counter offer and do you have to come up with the whole lump sum at once or will they work with you thru payments. I have a offer in compromise going right now. The tax preparper dont want to answer none of my questions now that he has has gotten paid($1200) Thanks. P.S. Not sure if I can still make payments to them. I owe about $14,000 You seem to sure know your stuff. Jerry Could someone give me some information on this.


Submitted by Jerry Carden on Wed, 02/03/2010 - 13:20

Jerry Carden

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Quote:

Originally Posted by Anonymous
can they take my income tax ..i been making payments to unemployment so can they come in and take my tax money


Yes, Your income tax refund will be applied to any balance that you have with the IRS (and any other federal debts like child support, defaulted student loans, etc).


**This is a cool site...Very informative ^_^


Submitted by on Wed, 04/21/2010 - 19:53

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Quote:

Originally Posted by Jay Dunfren

In regards to wage garnishment, what is the percentage that is usually taken from your paychecks? When negotiating with the IRS, is this percentage agreed upon based on your individual circumstances.


Garnishments are:

15% for Social security recipients and most federal employees - http://www.irs.gov/individuals/article/0,,id=128481,00.html

and

100% for Defense contractors - http://www.irs.gov/pub/irs-pdf/p594.pdf

and

differs for wage employees and contractors - http://www.irs.gov/pub/irs-pdf/p1494.pdf


You generally have 60 months to pay off your balance - http://www.irs.gov/pub/irs-pdf/f9465.pdf


Submitted by on Wed, 04/21/2010 - 21:40

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I have been on an installment agreement with the IRS for the past 10 years. I am paying on about 6 of the last 10 years in installments. I called yesterday to check on my installment payment and the IRS rep I talked to said some of the taxes I am paying on are over 10 years old. She said I would need to talk with someone in another department for them to examine this. These years are all included in my installment agreement even though she is right that some are 10 years old. I have not called them back yet. Do I need to talk to a lawyer first? What do I do? I am very worried.


Submitted by julie1016blue on Wed, 02/29/2012 - 09:06

julie1016blue

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hi i went and dd my taxes last year and i was suppose to get 9000 back and the irs took i ony got 200 is there a action i can take to prevent this for happening again


Submitted by on Fri, 12/28/2012 - 15:32

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