Taxs

[gillahoon]

Well i just filled my taxes again and i was supp to get a grand back long story short my wife ows the irs like 10 grand becasue her x screwed her on the uneraned income with her 2 kids there both filed for them and both got the money but she didnk know he do snice he has legal cust she now ows the ira 10 grand anybody know of anything that can be done i am dieing here.

[no_it_all]

The IRS will probably grab the tax refund and apply it to what is owed..sorry but that isn't what you wanted to hear is it?

[SinkingFast]

In a divorce situation, those details are worked out in the divorce decree. Who get's custody. Who pays for what. School and clothes and such. Who get's to claim the kids as deductions for income tax purposes.

If the tax debts are recent, there's probably not a lot to be done about them. You should probably contact the IRS and chat with them about arranging an OIC payment plan. The longer the debt remains, the bigger and bigger it gets. The IRS tacks on penalties, interest, and fees as time goes on. And every year that you are due a refund, the IRS will automatically take it.

If you're planning on filing BK, the tax debt does have a silver lining. It is Priority Debt and will be taken into consideration on the Means Test, and in your monthly expenses. Small consolation, but something, none the less. If you're slightly over the Median, the tax debt could be the thing that gets you a Ch 7 instead of placing you into a Ch 13 plan.

[gillahoon]

i am past my ch 7 already its filled and done with for a yr now my lawer back then told me cant do nohtingwith the taxs in the bk

[SinkingFast]

Then you should contact the IRS and arrange a payment plan. You'll get the debt taken care of sooner and it will cost you lots less in penalties and interest that continue to accrue over time.

[Annika]

We owe taxes from 2003, and we asked the IRS to set up a payment plan for us. They are surprisingly easy to work with, and the lady I spoke with was VERY pleasant. We probably talked for a good 45 minutes. She took time to explain everything, and she even let me set the amount I want to pay per month. They probably have a minimum, so I guess the amount I suggested was more than their minimum amount.

I knew we would be due a refund this year, and while I was on the phone with her, I asked what would happen with the money. In our case, I actually wanted them to apply it to our balance, rather than send us the refund, because I'm anxious to get that bill paid off as soon as possible.

She told me that they automatically keep the refund if you still owe taxes from a previous year.

I don't know if they make exceptions or not, but I doubt it.

Don't be afraid to call them, though. After hearing so many horror stories about dealing with the IRS, I was surprised to find that they were super-nice and very helpful. It might make a difference that I contacted them first, rather than wait on them to contact me ... I don't know.

[AMISLANDER]

Lst...

Well i just filled my taxes again and i was supp to get a grand back long story short my wife ows the irs like 10 grand becasue her x screwed her on the uneraned income with her 2 kids there both filed for them and both got the money but she didnk know he do snice he has legal cust she now ows the ira 10 grand anybody know of anything that can be done i am dieing here.

#1...not sure why you're really asking this "?" unless you're going to file bk.

#2...if you are...unless this debt is at least 4 years old...you should pay it prior to filing...
#3...how do I know this?....because I owed between $16 and $25K for 2005...and was getting IRS requests for payment...
#4...kids or no kids...i.e. "deal or no deal"...you can get a deal, "ONCE", if you have made ontime/current payments; not been late (and this means both you & your wife, if you file jointly). You can get a bit of a break...how do I know...I asked about it & IRS told me...i.e. if you don't ask; you also won't receive.

ANYHOOO...basically, get legal advice prior to anything...we are not lawyers but each of us here does have a different source of experience; take it for what it's worth...think it over & then deal.

[AMISLANDER]

Oh, one more thing.....

being that once, as a married person, we did owe $25K due to inadequate tax advice...& borrowed to pay it off...IMMEDIATELY...if you set up a payment plan...you will be flagged indefinitely....if you can avoid it...never, ever, get in debt with the IRS...go BK, go postal, fly the coop...whatever...and I'm not being funny....you DO NOT WANT YOUR SS# sitting with the IRS on payment....do what you need...just avoid this one at all costs.

[no_it_all]

Then you should contact the IRS and arrange a payment plan. You'll get the debt taken care of sooner and it will cost you lots less in penalties and interest that continue to accrue over time.

Just a clarification here....the interest still accrues while on a repayment plan. Also note that an Offer In Compromise is not the same as a repayment plan. Repayment plans are normally for the full amount (including all penalties and interest) while an OIC is a reduction in the taxes owed and often includes a waiver of interest and penalties..of the two, an IOC is a better deal but much harder to justify....

The reason a repayment plan is automatically granted (true, they are!) is because the IRS will get every single penny owed to them (including interest and penalties).

[Minnymouth]

An Office in Compromise is also "cash upfront" - no payment plans involved..... kind of hard to do it if in BK.......