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Owe lots of back taxes...

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    Owe lots of back taxes...

    We filed chapter 13 last year and included about $20,000 in back taxes. Now we are switching to a chapter 7 due to job loss. No funds were paid to any of my creditors including the IRS. I know that taxes are not dischargeable and we will have to pay them. What's the best way? Do we try to work with the IRS directly for a payment plan? Get another lawyer that advertises back tax issues? We do not have any money in savings to make any kind of lump sum payment - not even a couple hundred bucks. I don't really want to get my wages garnished. If it gets that far, how much can they take from my paychecks?

    #2
    My family and I have ended up behind the ball with the IRS several times over the years; if you are proactive and call them to try and work out a plan, they have been, ummm, reasonably reasonable, if you know what I mean.
    Chapter 13 (not 100%):
    • Burned: AMEX, Chase, Citi, Wells Fargo, and South County Bank cum Bank of Southern California
    • Filed: 26-Feb-2015
    • MoC: 01-Mar-2015
    • 1st Payment (posted): 23-Mar-2015
    • 60th Payment (posted): 07-Feb-2020
    • Discharged: 04-Mar-2020
    • Closed: 23-Jun-2020

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      #3
      I agree with @shipo...calling the IRS is the best way to go. I've found them to be very helpful and fair when I've dealt with them over the years.
      Filed Chapter 13 - 07/20/12
      Discharged 8/2/16

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        #4
        You will definitely need to go into a payment plan. Since it's less than $25K, you can do it online under the streamlined Online Payment Agreement (OPA) process. You will need to wait until you are discharged from your Chapter 7 before you can enter into the agreement. It's generally amortized over 6 years at about 5%. At $20K and at that rate, 5%, it's about $325/month, give or take, for 6 years.
        Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
        Status: (Auto) Discharged and Closed! 5/10
        Visit My BKForum Blog: justbroke's Blog

        Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

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