TAXMAN Posted December 28, 2009 Report Share Posted December 28, 2009 Hello all and getting nervious for new season. Question? Have TP(mfj all years) IRS debt about 100k not including P&I due to Schedule c of spouse who recently died. Husband's income was generated by wife. She was a certified appraiser, he was a gopher. heavy mortigage. He cannot find work as he is not certified. Family is paying mortigage at this time. He is litterly broke. He also was not aware that they owed this much money as spouse kept things hid (he found statements hiddened in a bucket along with a boatload of IRS letters)and just signed name to returns. No life insurance on spouse. Tp is 40 yrs old. What would you suggest? Thanks How would you approach IRS to get this debt gone? OIC doesn't appear to work because TP has no equity or a job or assets of value. Quote Link to comment Share on other sites More sharing options...
jainen Posted December 28, 2009 Report Share Posted December 28, 2009 >>How would you approach IRS to get this debt gone?<< Why bother doing anything? The IRS can't. If your client is uncomfortable about that bucketful of letters, have him sign a power of attorney and fill out Form 433-A completely. Find the most recent letter and call the response number. Ask that the case be designated uncollectible. Don't be surprised if it's already in that status, in which case politely disconnect and collect your fee. Otherwise fax your documents and repeat the request. IRS may want the taxpayer to sign a waiver to extend the collection period. Do NOT give your client legal advice concerning that, and document your non-giving of advice. Tell him to see an attorney, and document your telling. Then tell the IRS agent that the waiver is acceptable, and fax it back in. Because otherwise you won't get what you want, including your fee. Be aware for yourself that tax debts can usually be discharged in bankruptcy after three years, and there is a ten year statute of limitations on past due accounts. Uncollectible accounts are supposedly reviewed annually, so consider that a temporary solution while your client gets his life back on track. Later he may have a way to work out a payment schedule or compromise. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted December 28, 2009 Report Share Posted December 28, 2009 Well, probably should sell the house if he has any equity at all. Then try to get the debt classified as 'currently uncollectible'. He can still do an OIC, even if it is for $100 only. But given the situation, he may not need to do that to get it classified as uncollectible. OIC may be overkill. Quote Link to comment Share on other sites More sharing options...
Pacun Posted December 28, 2009 Report Share Posted December 28, 2009 Hello all and getting nervious for new season. Question? Have TP(mfj all years) IRS debt about 100k not including P&I due to Schedule c of spouse who recently died. Husband's income was generated by wife. She was a certified appraiser, he was a gopher. heavy mortigage. He cannot find work as he is not certified. Family is paying mortigage at this time. He is litterly broke. He also was not aware that they owed this much money as spouse kept things hid (he found statements hiddened in a bucket along with a boatload of IRS letters)and just signed name to returns. No life insurance on spouse. Tp is 40 yrs old. What would you suggest? Thanks How would you approach IRS to get this debt gone? OIC doesn't appear to work because TP has no equity or a job or assets of value. Are you nervous because he never signed the returns or just nervous in general? Quote Link to comment Share on other sites More sharing options...
TAXMAN Posted December 29, 2009 Author Report Share Posted December 29, 2009 Are you nervous because he never signed the returns or just nervous in general? I guess just nervous in general about what kind of idea's TP's have come up with this year. You know like I heard pet deduction, washer/dryer combo etc. Anyway should be a great year with the new L & M schedules. Quote Link to comment Share on other sites More sharing options...
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