The IRS Audit Blog

Posts Tagged ‘debt’

Question: Should I hire a tax attorney?

I filed 4 years of back taxes and the IRS accepted my returns. I still owe them about 20K that I am happy to pay in an installment plan.

However they are playing games with me now (e.g. sending me the forms to request an installment plan on the day they are due) I am scared that they will “screw” me by putting a tax lien on my credit record, emptying my bank account etc.

I am not being audited but I am scared to communicate with the IRS directly. Is it worth it for me to hire an attorney to communicate with them on my behalf?

Answer: A CPA would do it cheaper.

And they have already put the lien on your credit record, that is the way they work. And if I were you I would not keep any money in the bank for a while as they screw up and take it from time to time (and you can’t get it back as you owe it to them).

Go and consult with a local CPA, make sure you ask him how many cases like yours he has worked in the past, if none or not many, find someone else to help you.

good luck

Branstad says no to attorney pay plan

Gov. Terry Branstad has shot down a House Republican plan that would have allowed him to transfer millions of dollars from other parts of the budget to pay state bills.

Houston CPA Tax Attorney Gives 5 Tax Preparation Tips

Question: When you apply for a job with the IRS as a field agent or special agent…..?

they do a tax audit that you agree to be performed for employment. How far back do they go, and should unreported ebay income from a few years ago be a worry in this process?

Answer: Anyone applying for Employment with the IRS has their Tax filing history reviewed. They look that all returns for up to 10 years are filed, whether you left income off of a return, Basically were you compliant in filing your returns. They also do a detailed background check and you are required to be fingerprinted.

Demand for financial services pros expected to grow

Reforms in industry, expansion of banks’ products and services to spur hiring, experts say.

IRS will expand by 16000 jobs and $10 Billion Due to ObamaCare

Question: Does California not pay a tax refund if filing more that three years late like the IRS?

I just caught up on all my taxes for the last four years (I had all refunds or no taxes). Now for my 2004 Federal taxes I was too late to get my fed refund because they only go back 3 years for refunds. My question is whether there is a similar expiration to California refunds, if the year of that refund has not been filed by a certain time.

Answer: California Revenue and Taxation Code section 19306 provides for a four (4) year limit from the date that the tax return should have been filed or in the case of an amendment four years from the date that the original return was filed. Filing a late 2004 California return would get you a refund if you overpaid. You should also file the federal return although you will not get a refund.

Rich, famous and tussling with the taxman

These stars made it big, but they neglected to give Uncle Sam his share.

A Complete Guide to the $7500 Federal Tax Credit

Question: Misuse of social security numbers linked to debts?

I have a friend who attended nursing school funded by a local city agency. She last attended school in 1986. Sometime in 2001 she was contacted by a debt collection agency trying to collect on a debt for someone with the same name, social security number, but different school as well as different date of attendance being 1991. Because the debt was about the same amount, she thought it was hers and didn’t demand verification. Also, she wasnt’ at that time very consumer savvy on her rights. Because she made a payment, the agency attached her tax return on subsequent filings thereby involving the IRS at this point. She is on welfare and cannot afford legal counsel, but I know she’s entitled to free advocacy through the system. Who should I hit up first? There are about a thousand choices out there.

Thanks,

Debra

Answer: Debra:

It’s difficult to answer this question, because it’s not clear who funded this loan. If the US Department of Education was involved, as either the maker of the loan, or the guarantor, they would be the first choice for your appeal, starting, perhaps, with the Ombudsman’s Office at the Department.

However, you mentioned that she attended school “funded by a local city agency”, so that makes it sound like the Department of Education had no role in the financing. If that’s the case, the Department would most likely refuse to get involved.

Obviously, you’re going to run up against additional obstacles related to the age of this loan – I’m wondering if this “city agency” is even in existence any more, let alone the program that the loan was made under.

There are a lot of issues here, and to really identify the right resource, anyone trying to help you would really need to know more of the details.

For example, there is a statute of limitations on the collection of many kinds of debts – at most, it’s 20 years if the creditor obtained a judgment. However, changes in the bankruptcy laws a few years back made student loans a whole different kind of animal from other forms of debt. I imagine that this debt qualifies as student loan debt, but I’m not sure, without knowing the details.

For one thing, by now, your friend should have filed a police report. You’ll need documentation to “fight” this misdirected claim, and that’s the first step. Given the complexity and the lack of details, I suppose the next logical step would be to contact the Consumer Affairs Department for your state. Lawyers at that agency should be able to provide you with the best possible advice about how to substantiate your fraud claim, and how to most effectively work with the collection agency to call off the sharks.

I’m sorry I couldn’t give you a more specific answer, but I wish you the very best of luck. With enough perseverance, I am confident that you will get this resolved. Thanks, also, for being such a good advocate for your needy friend.

IRS Issues New Phone App To Track Refunds

For people who just can’t enough of the Internal Revenue Service, the federal tax collection agency is coming out with a new phone app.

Crazy Debt Collector Answering Machine Message

Question: Any attorneys out there? Tax lien situation whereby IRS has garnished wages to the point of poverty; remedies?

This info is for a freind whom has consulted w/ an atty. and stated that the only option is a settlement. This party does not have the money for a settlement nor enough assets to sell off to erase the tax liability. All wages garnished and personal asset(s) i.e. car has lien attached. Bankruptcy won’t work due to this is non-dischargeable debt. This person understands the need to pay and has a good job-salary, but the IRS has left her/him with $333 to live on ea. month. Bascially poverty-stricken. No doubt the gov’t has legal basis to due this, but, but, I believe it’s unfair/ unjust to propel a person into dire straits with collection efforts. If the garnishment was not at the present level e.g. leaving this person with say $1000 to live on monthly, it would be affordable. I don’t think the IRS… tax system, was setup to render a preson homeless or otherwise. Thank you for any assistance.

Answer: Obviously, I don’t know all the details, but the IRS will usually levy wages only after they have been ignored for a long time. Your friend needs to come up with a payment plan, either a proposed installment payment plan (form 433D, I think) or a partial pay offer in compromise (form 656), along with a financial statement on form 433A. The forms are on the IRS web site http://www.irs.gov. Good luck.

Erlanger provides biggest share of free care

Chattanooga’s two nonprofit hospitals each claim about 40 percent of the local market, yet one of them — Erlanger Health System — shouldered nearly 80 percent of the free hospital care provided to poor patients who aren’t expected to pay their bills last year, according to the most recent data reported to the state.

KJ Law Firm Introduction video