Is there a forum similar to this that specializes in tax debt?

[InDebtNeedHelp]

Is there a forum similar to this that specializes in tax debt?

[InDebtNeedHelp]

Can you tell me about your OIC process? What happened first, then second, etc.? How did the whole situation end? Do you know of any good websites with good tax debt information?

[syn]

Guess I will give this a shot, not that I know of to answer your question. Tax debt is tough, but your options are pretty simple. If you have a question shoot, I once had tax problems with the IRS and know all about everything from bank account seizures to tax liens, property seizure and finally an offer in compromise (OIC). Mind you that was about 15+ years ago, but not much has changed for the IRS. The "new" IRS is gone already and they are pretty much back to business as usual.

Not to hijack the topic but I have a tax question. There is a $30,000 lien on a property my dad owns that is in foreclosure. I know the mortgage company isn't obligated to cover that so what happens if it is auctioned off and the lien isn't covered?

Also, my dad is dealing with an IRS agent and he has sent some money towards what he owes but she sent a letter pretty much saying not to do that because she hasn't seen his financial information. Why wouldn't the IRS want him to put something towards it?

Plus it's a business tax debt, the records are going to show that the business isn't making anything, can't she and him make a deal for him to go on a plan and lower the amount? Like taking away the interest and penalties?

[HHM]

Not to hijack the topic but I have a tax question. There is a $30,000 lien on a property my dad owns that is in foreclosure. I know the mortgage company isn't obligated to cover that so what happens if it is auctioned off and the lien isn't covered?


The lien is simply recorded at the county recorder office, it will stay there until the lien is paid off. The lien will attach to any property your dad purchases in that county.

Also, my dad is dealing with an IRS agent and he has sent some money towards what he owes but she sent a letter pretty much saying not to do that because she hasn't seen his financial information. Why wouldn't the IRS want him to put something towards it?

That is an odd one, you can always send money and make voluntary payments to the IRS. In fact, you can specifically designate the tax and period you want the IRS to apply the payment.

Plus it's a business tax debt, the records are going to show that the business isn't making anything, can't she and him make a deal for him to go on a plan and lower the amount? Like taking away the interest and penalties
IRS debt resolution does not work that way. You need reasonable cause to abate penalties and you CANNOT abate interest unless there was a calculation error. When you say business tax debt, what is the specific type of tax. If it is payroll tax, then your dad is can be personally liable for the debt.

In essence, tax resolution is somewhat simple. You have 3 options, (1) payment plan, (2) offer in compromise, (3) non-collectible status. Of course, each option has its ins and outs and complications. But one big myth is that you can somehow "negotiate" away penalties and interest, that is not the case. The IRS has specific rules and regulations about getting rid of penalties and interests. As mentioned above, you need reasonable cause to abate a penalty that is specific to the penalty. For example, if one of the penalties is a Failure to File your Tax Return...reasonable cause might be that you were hospitalized for 3 months and could not reasonably be expected to file the return on time.

[syn]

Thank you so much. I thought they may lien on my house if the other property is gone, it's not gone yet they haven't even auctioned it off yet and it's still up for sale but he won't be purchasing anything in that county so the lien just stays in the clerks office? Our house is in a different county.

I don't like the IRS agent that is handling his case, she first came to the shop in August and it's been jerked around her getting his financial records ever since. He gave his CPA power of attorney but she claims she never got it and never answers her phone and changed her cellphone number twice. Supposedly this week she is finally picking up the records but it's been what almost 4 months?

I didn't understand it either, the notice said his request for a payment plan was denied due to not having his financial information but he originally set up the plan with the IRS themselves back in July. They had screwed up applying his $500 a month and two weeks ago he called and they appled it to his debt and a week later is when he got the notice from the agent.

It's 941 payroll tax, it's a weekly thing he has to pay to the IRS and he didn't pay it for two quarters at the end of 2007 and the beginning of 2008. I understand he is liable for the debt. I couldn't tell you where I heard the myth, probably read it somewhere! Payment plan for him may be the best option but what does the offer in compromise mean and also the non collectible status?