Irs taxes owed my options?

[cicero]

I owe the IRS $13,600 for the tax year 2008. It was originally around $10,000 but now three years later with penalties it's $13,600. I set up a payment plan and then completely screwed it up. The IRS sent me a intent to levy (or lien?) several years ago. I know they check periodically to see if I have a bank account because a few months ago I got a letter saying something to the effect they were levying a bank in Pa. that my Mom had an IRA or Trust or some kind of account with. I guess they were checking too see if there was any money in the bank under my name, there wasn't, I don't have a bank account anywhere. There's a long stupid story behind all of this but the bottom line is it's my fault and it's my debt. I don't own anything, no car. no house, only some personal property, computer, TV, etc. I can save probably 2 or 3 thousand dollars by working double shifts in next 3 or 4 months. I would like to know what my options are. I have considered calling the IRS to talk to them about this but to be perfectly honest that idea scares the hell out of me. I have other creditors calling and threatening but the one that terrifies me is the IRS. I literally get physically sick if I think about it too much so I just push it out of my head. I have filed and paid all my taxes since 2008, I even had a refund for 2010 but they took it and applied it to what I owe for 2008. The only thing I don't understand is that they are not reallly pursuing me for this money except for the lien or levy letter. They have never called me and they have not garnished my wages and I've been at same job for 8 years. Ocassionally I get a letter showing my current balance. I have read nightmare stories about the IRS garnishing entire paychecks and coming into peoples homes and taking laptops and jewelry etc. Like I said the debt is mine I have no excuses, I would really appreciate any suggestions on where to go from here. I would like to know why the IRS has not garnished my wages yet and if they can come into where I live and take what little personal property I own. I have to take some steps toward clearing this up because it is just tearing me up inside. Thank you for your help

 

[Proserpina]

Unfortunately, the intent to levy is the ONLY notice they have to provide before they are allowed to take further action. There IS a limit as to what they can take, but if you're working consistently the chances are good that they'll simply keep taking your tax refunds until the amount is paid off.

You mentioned other debts though. Because your tax debt might just fit into the parameters required for discharge, have you considered bankruptcy?

 

[cicero]

I don't think I owe enough to qualify for a Bankruptcy, my personal unsecured debt is maybe $15,000, I worked out payment plans with most of them and then one garnished me for 8 months and then it was paid. I had a payment plan with the IRS also but I screwed it up. I don't care if they take my refunds and apply it to the balance,my refund was only $450 I think and I do owe the money. My biggest concern is getting my paycheck garnished, I've heard they do that alot and it's been almost 4 years this is going on so I'm surprised they haven't done it yet. That's one reason I'm afraid to call them, I'm thinking they will zone in on me then and garnish me. I'm just not sure how to approach this. I've read about the offer in compromise and it's confusing as hell to me and I guess not a guarantee they will accept it. This is the first time I have ever had any tax problems in my life.Thank you for responding.

 

[Proserpina]

They cannot take your entire paycheck.

However, you actually might have more to lose by NOT contacting them to try to come to some sort of arrangement.

 

[cicero]

When you say arrangement what do you mean exactly? Can they negotiate the balance over the phone or do I have to do the OIC form? Also I see ads all over the place for tax debt reduction services but I'm very skeptical about those.

 

[army judge]

When you say arrangement what do you mean exactly? Can they negotiate the balance over the phone or do I have to do the OIC form? Also I see ads all over the place for tax debt reduction services but I'm very skeptical about those.

There are MANY companies and law firms that will negotiate a settlement with the IRS on your behalf.

The settlement is usually 20-33% (give or take) of the entire amount owed.

Google "negotiated settlement firms for IRS debts".

You may have to tweak the wording, but eventually many firms will be revealed.

Some of these firms advertise on television and radio.

They also advertise on the 'net and in the print media.

Select a few of them, and contact them, one by one.

You can select one that fits your situation.

You can also ask co-workers, relatives, or friends for recommendations.

Surprisingly, many people have been where you are!

Bottom line, OP, YOU must take the first step.

Stop avoiding it, as it will ONLY get worse!

When you fix it, you'll say, "Darn, that was easier than I thought!"

 

[cicero]

I've seeen those ads all over the place, they promise to get pennies on the dollar some of them. I've read (again I have no idea if it's true) the the IRS will be more likely to reject OIC if you use one of these firms because they don't like dealing with lawyers or outside parties. If I call the IRS and tell them who I am and how much I owe and ask what are my options what do you think they will say? Will they just tell me "pay us our money" and hangup aor will they offer any kind of help?. I guess the OIC deal can take along time to process and you have to send 20% of what your offering to pay it off completely and if they end up rejecting your offer they keep the 20% you put down. It's a long and detailed process and they do alot of investigating or so I've read. I have nothing to hide, I don't own anything, no home, no car, no bank account or IRA or life insurance, nothing, nada. If I owe $13600 what's the ideal amount to offer? Half of what I owe or more? If the reject my OIC do they ever do a counter offer?

 

[irsmedic]

Cicero --- you are not correct. The IRS routinely accepts OICs that my law firm submits. They love dealing with us and they tell us so/ Why? Because we make their jobs easy. That is not to say there are many folks who don't know what they are doing.
Also you 20% down payment rule is for rookies. You have a very basic understanding. Enough knowledge to be dangerous. Sorry. But you are talking well outside your expertise.

 

[irsmedic]

To avoid a levy, all you need is a collection alternative. In your case it would be a phone call to the IRS to request a 'streamlined installment agrteement. No docs required. You'll pay about $300 month via direct debit. If you can't afford $300 a month you may want to loo into getting a partial payment installment agreement or requesting CNC status.