Bk what to do?

[mbas1036]

Wow i will try to be brief.I turned 50k into a 1.5 million dollar short-term gain in the last two weeks of 1999.Lucky trade only to be followed by some of the dumbest in history.Being a 17 year veteran of Wall St. at the time,I now thought I can manage my own windfall.The money was in my acct. less than one month in 2000 when I decided thatI would start to reinvest in some battered stocks while I figured out my total P/L statement for 1999 to report to the IRS and State of NY.Well again to be brief,through some private investments in hedge funds and non public businesses I managed to lose it all.So over the last 6 years I have been sitting on a large reported gain for 99 and subsequent loss for 2000 and 2001.I have given the IRS and NY State everything my Wife and I have except for our house,(value 375,000 -mortgage 254,000.00).We had a small condo in Fl. which we are in the process of selling right now to turn over proceeds to IRS.We have nothing left.I lost my job as an equity trader because I can no longer put up money as a security deposit to trade,lost job in 06.The State keeps taking any seed money I borrow to do this type of work.Anyway no need to ramble about that.We have both taken local jobs and are making a combined salary of 40k.This just covers our living expenses.No credit cards,had to stop paying them-about 35k on those.I have applied several times for offers in compromise with State and IRS.IRS originally said they would take 4k a month for 10 years that would make them happy-lost job had to stop paying.State never responded with compromise.I have now lost all help also,on my own.Any help?


IRS original debt --400k now 1.4 million
State orig debt-----75k now 350k

I have paid off about 200k but now interest is about 350k per year.

Just looking to keep house,will give up rest of equity but need this to end.Will they ever let me move on?

[lrprn]

What a mess! Sounds like you are dumping one pail of water into a two-pail drain - no wonder the sink won't fill

Have you met with tax lawyers or very experienced tax accountants who understand the finer points of tax laws and what is possible to do in your situation? Also it is possible under certain circumstances to discharge tax debt in bankruptcy, but you need very knowledgeable tax and legal advice to see how that might play out in your situation.

We do have a few tax-knowledgeable folks here in the forums - hopefully one of them will chime in with some insights for you.