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November 23, 2008My roommate is in debt $12,000 with the IRS and it just keeps stacking up, we barely make it by as is and have no money to pay a tax debt relief company to help, does anyone know of any that are free or dont require any money up front???
No my roommate didnt just say, "I'm not gonna pay my taxes" she doesnt have money to pay it, when you have about $100 left after bills it's kind of hard to pay $12,000 off. our government sucks because if you are middle class you get taxed like a rich person and paid a small step above lower class.
When she received her stimulus, it wasn't a stimulus it was a statement saying she owed $10,000
No, since tax debt comes from committing tax fraud you need big guns to help. The standard retaining fee is 10k. No one will touch your roommate without full pay in advance, it is already abundently clear that they are a dead beat and would not pay if they could get away with it.
The IRS will start garnishing their wages soon, your roommate can not simply just decide to phuck the rest of us forever.
Horaayy..there are 8 comment(s) for me so far ;)
Nobody can get rid of IRS debt. . . . except IRS.. . . and they usually don't, although they can remove penalties and interest. Of course it keeps piling up!! What starts as a small sum due the IRS grows when one ignores it, by penalties and interest added on, and the longer it's ignored, the more it grows. Obviously your roomie's withholding (or estimated tax payments) was inadequate–which was her error, and has nothing to do with the IRS, except that they will penalize her for that.
Go to nonprofit credit counseling agency in your area.
FYI: Landlord, NOT all tax debt is due to fraud–that's making unwarranted assumptions.
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tax pro
No, since tax debt comes from committing tax fraud you need big guns to help. The standard retaining fee is 10k. No one will touch your roommate without full pay in advance, it is already abundently clear that they are a dead beat and would not pay if they could get away with it.
The IRS will start garnishing their wages soon, your roommate can not simply just decide to phuck the rest of us forever.
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The first thing for your roommate to do is to ensure that they don’t incur any MORE tax debt. Second, they should call the IRS and discuss options for paying it back. An installment agreement for that amount would probably be around $200/month depending on how old the debt is. If they can’t afford that, then the IRS will take a financial statement which will determine how much they can afford to pay, if anything. This will require the IRS filing a federal tax lien, if they haven’t already, which will impact their credit report. The financial statement will ask for montly income and expenses and if the allowable expenses exceed the income they will put your roommate in a deferred collection status which means that the IRS wouldn’t expect any payments until their financial situation improves. The interest and penalties will continue to accrue, however. On the other hand, if the financial statement shows they can pay, they’ll be required to pay whatever it is. Your income will also be considered, but only to determine what percentage of the expenses the IRS will allow. For example, if their income is 70% of the total, they would allow him 70% of the rent. Send me an email if you’d like more information.
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I handle these kinds of problems professionally. I am not free and I have never encountered anybody else who represent people in your situation for free. I would probably charge about a third of what the tax resolution companies that advertise on TV but that is still more than nothing. It is unrealistic to expect someone to represent your without paying an up front retainer because you have disclosed that you are a financial risk.
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I am an enrolled agent who specializes in representing taxpayers who owe a lot of back tax or have unfiled returns. Your big mess is my ordinary day at the office. If you want additional help you can email through my profile.
DO NOT call one of the pennies on the dollar places. All you will do is spend money and get NOTHING from it. Call the IRS and set up a payment plan. Your roommate is eligible for one automatically. Then follow thru and get the record cleared up.
Helen, EA in PA
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If you climb down off your soap box maybe I can help you.
You can start making minimum payments of $50.00 per month until you get off your feet. Obviously, if you have accumulated debt to IRS, you made money and for some unknown reason were not able to pay.
If you were able to get a stimulus payment, they would apply that amount to your debt.
Suck it up. Stop complaining and show some effort. Speak with the taxpayer advocate’s office and see if they can help you. Explain to them your hardship and they should be able to work with you.
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The IRS will automatically give yoru roommate a payment plan if she can pay $200 a month.
If she can't afford $200, she has to prove that based on her income she can't afford it. The IRS calculations are stiff. No cable, no cell phone….those are luxuries, not necessities.
Yes, your roommate got the stimulus–and a letter saying that just like any other refund the $300-$600 was applied to her debt.
PS, to be $10,000 plus in debt to the IRS usually happens because of 1 of 3 problems:
Self-employment income with no handle on the tax situation.
Wage income with the W-4 marked exempt or something ridiculously wrong.
Having claimed credits and such in the past they she wasn't entitled to and was asked to pay it back.
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Your roommate has several options:
1. Divide the amount you owe by 60 and if you can pay that amount call the IRS and request a Streamline Installment Agreement.
2. If you cannot make any payment, you can provide a full financial statement (form 433F)and if the IRS agrees that you have more allowable expenses than income, they may put you in a Currently Non-Collectible Status and you will not have to make a payment until your financial situation improves(the IRS will look at it each year)
You may find the IRS demanding of full payment, depending on who you get on the phone. If you cannot get them to work with you, paying someone to represent you may be your only option.
References :
http://www.taxconsultant4u.com