Being Served - but Not Working!

[spearmint]

Spearmint, get your tax returns filed! If you had done that in 2009, the tax debt would probably be dischargeable by now.

Yes, you are right. I was thinking about this today. The problem is the accountant still has all the tax information I gave him. i need to get it back from him. A friend has offered to help me with the tax returns. She works for H&R Block at tax time and, while she may not be an full fledged tax accountant, she can certainly help me get them filed even if they are not totally accurate. I just hope the accountant will send me back my documents. I haven't been able to pay him. He's a real sleaze, too. He filed all the returns for the "other" years and NOT for the years where I owed the large sums of money! I didn't know this until after they were all done. I thought for sure he would do the worst ones first.

Not sure I can wait three years to file, though. Of course, I thought that in 2009 as well.

[PANSYFACE]

Ok - First of all, was the accountant a CPA? If so, even though you haven't paid him - or still owe money to him, he is obligated to give you back your information. I know this because I was a CPA and it is in our rules and regulations. If he was just some guy doing accounting work you may have to get someone to write a letter to him( any friends who are attorneys or legal aid?)

Your friend who works for H & R Block can probably get the returns done just fine. You have to file your returns in order to be able to file bankruptcy.
Plus you will feel better just getting them filed - and in compliance.

If you are bankrupt and cannot pay your taxes there is a little thing called being uncollectable that the IRS will deem you to be after giving them your financial information. The taxes and interest and penalties continue to run but they will cease collection efforts. But you have to file all your returns first.

Good luck!!

[Pjmax]

Pansyface, I've never heard of the IRS stopping collection activity before. They will file a lien if you owe over $10,000, and as soon as there is something to collect, (whatever amount you owe) they will be right on you. They may go dormant for awhile, but they don't go away. As soon as OP files for SS (mentioned that was in the plans in two years), the IRS will levy 15%.

Just wanted to be clear on that. Best thing is to get them filed, and when you get the notices (you'll get a separate one for each year you owe), call them and see if you can work something out.

[spearmint]

Yes. The accou

Pansyface, I've never heard of the IRS stopping collection activity before. They will file a lien if you owe over $10,000, and as soon as there is something to collect, (whatever amount you owe) they will be right on you. They may go dormant for awhile, but they don't go away. As soon as OP files for SS (mentioned that was in the plans in two years), the IRS will levy 15%.

Just wanted to be clear on that. Best thing is to get them filed, and when you get the notices (you'll get a separate one for each year you owe), call them and see if you can work something out.

Is 15% the max they can take from my SS?

How much could they take from a company pension when I begin to take it?

[spearmint]

Yes. The accountant was a CPA. I've been afraid to ask for the documentation back because I am afraid it would prompt collection action from him.

[PANSYFACE]

Just to clarify - the IRS will NOT keep trying to collect from you if you have no income or assets. Yes, they will file a lien just in case later on you suddenly win the lottery or something - but once you fill out a 433A and show that you are broke, they will leave you alone. They may have you fill out another 433A down the road but if your situation hasn't changed, you are still uncollectable.

I practiced in the public accounting arena for 25 years and had my own firm for 15 so I do know of which I speak.

Get your info back - if he tries to collect from you you will be filing soon. You need to get the taxes done - this is of utmost importance!!!!!

If you collect social security, they will only take money out of it if you show more income than you have expenses. Yes,it doesn't go away but if nothing changes, in 10 years the statute will expire and the liens will be released.

I have handled this situation hundreds of times for my clients - the filing of the 433A is what makes the difference between having the IRS hound you or being left alone.

[Pjmax]

Pansyface, I apologize if it seemed I was doubting your knowledge, not my intent, truly. My point was the IRS will not just go away if the OP continues to do nothing.

[PANSYFACE]

No worries Pjmax - you are correct that something has to be done or there WILL be a problem!!!

spearmint - the sooner you move on this the sooner you can get some peace of mind. You can do this!!!

[spearmint]

Just to clarify - the IRS will NOT keep trying to collect from you if you have no income or assets. Yes, they will file a lien just in case later on you suddenly win the lottery or something - but once you fill out a 433A and show that you are broke, they will leave you alone. They may have you fill out another 433A down the road but if your situation hasn't changed, you are still uncollectable.

I practiced in the public accounting arena for 25 years and had my own firm for 15 so I do know of which I speak.

Get your info back - if he tries to collect from you you will be filing soon. You need to get the taxes done - this is of utmost importance!!!!!

If you collect social security, they will only take money out of it if you show more income than you have expenses. Yes,it doesn't go away but if nothing changes, in 10 years the statute will expire and the liens will be released.

I have handled this situation hundreds of times for my clients - the filing of the 433A is what makes the difference between having the IRS hound you or being left alone.

This makes me a feel a lot better - but now I am frantic that the knock I just had on my door is the IRS and not a process server!! Whoever it was left no card, no papers . . .

[PANSYFACE]

The IRS ALWAYS leaves a business card, spearmint, so it wasn't them.

I have been through the knock on the doors and weird people walking around my home from judgments etc - just get your taxes done now. Also, if you only have income and deductions that would be reported to the IRS - you can get transcripts of your income for those years FREE from the IRS. It's a good idea anyway to check against what you have in information. Sometimes tax documents get lost or misplaced. And no, they will not bite your head off for asking - just tell them you are trying to get in compliance and file asap - they like that!

[LadyInTheRed]

You can order your IRS transcript online at https://sa2.www4.irs.gov/irfof-tra/start.do

Or, to order over the phone, call the IRS: 800-908-9946.