IRS Certifried Letter

[spearmint]

I am going crazy! I have back taxes that I owe and until recently, some unfiled returns. All the returns have been filed and a payment plan requested. A few weeks ago I received a coupon to pay but a message saying that they were still looking into the issue of the payment plan. Since then, I have received a couple of notices about levying past employers from the previous state I lived in. Today I received the certified letter. I am afraid to open it because surely it can't be good news if it is certified. I have been sending them payments as promised for two months now.

I have an appt with my accountant tomorrow but I am beside myself with worry. I thought that filing the returns and requesting a payment plan would make things easier. It doesn't seem so.

I am so afraid they take half my wages and/or tell my employer.

There does seem to be some miscommunication between a few different offices (different states) of the IRS but surely they can all see the request for the payment plan.

Would filing BK make this any better? I do have valid reasons to file other than taxes.

[justbroke]

Filing bankruptcy could help in certain circumstances. The IRS is currently offering 6 years to pay back taxes on installment. If you owe too much that it would take half your income, then you have a serious issue. If your taxes fix the 3/2/240 dischargeability profile (3 years since due, 2 years since filed, 240 days since assessed) you could discharge the taxes. However, you indicate that you didn't file returns and that could be problematic -- even if you eventually filed them.

You need to speak with a bankruptcy attorney and a tax attorney. I don't know if you're talking about $10,000 or $100,000 in past taxes.

Please open the letter. Even if you don't open the letter, the IRS will proceed with whatever collection technique they choose (levy, garnishment, both).

[PANSYFACE]

Not all news is bad when it is certified mail. You must open and deal with it. Nothing good will come of it if you let it sit there. I was a CPA. Take care of it now. It will be alright.

[spearmint]

Filing bankruptcy could help in certain circumstances. The IRS is currently offering 6 years to pay back taxes on installment. If you owe too much that it would take half your income, then you have a serious issue. If your taxes fix the 3/2/240 dischargeability profile (3 years since due, 2 years since filed, 240 days since assessed) you could discharge the taxes. However, you indicate that you didn't file returns and that could be problematic -- even if you eventually filed them.

You need to speak with a bankruptcy attorney and a tax attorney. I don't know if you're talking about $10,000 or $100,000 in past taxes.

Please open the letter. Even if you don't open the letter, the IRS will proceed with whatever collection technique they choose (levy, garnishment, both).

I will open the letter in my CPA's office this afternoon. The amount I owe so far is about $14,000. I mentioned taking "half my income" because I really don't know what the IRS can take. My payment plan is $200 a month and I am so confused that I even got this letter since I have been paying on it for two months now. I even received a voucher while they review the payment plan so I can make payments.

What is confusing is I am getting communications from my old state where I lived (letters saying they will levy wages) and then the voucher for payment from my new state - and now this certified letter from Ohio. I just don't know if they are all on the same page.

I can't imagine the IRS would send anything certified unless it was bad news.

[justbroke]

Let's see... an IRS Installment over 72 months for $14,000 at 3.5% is only $190 a month (approx). So your payment sounds about right! As for the letter, let me just say that nothing ever comes good from ignoring the IRS and tax issues; nothing.

The letter could be an intent to lien (they're still going to put a lien on your real and personal property), or other general correspondence.

[BKorbust]

I agree most of the time it's bad news when you get a certified letter from the IRS. You never know though. Open the letter resist the urge to stick your head in the sand.

[spearmint]

I don't have anything they can put a lien against. Even my vehicle is old

[justbroke]

I don't have anything they can put a lien against. Even my vehicle is old

Don't be too misinformed. An old vehicle can have a tax lien placed against it, just as easily as all your possessions (furniture, books, electronics). A Federal Tax Lien attaches itself to all your future property as well (until the lien is resolved or you file bankruptcy). If you file bankruptcy, you may need to avoid the federal tax lien, if one is in place. That's an advanced subject and I would highly recommend representation if you have any property (down to your clothes and that "old" car), a tax lien is filed, and you file for bankruptcy (or not).

If you are unsure of how a federal tax lien works, please obtain a free consultation with a tax attorney or specialist. Your "old" vehicle is exactly what the IRS loves. Something already paid for and has no other liens.

[spearmint]

It turned out to be only a tax bill for one of the years. My CPA and I then talked to IRS on the phone. It seemed to go well although he couldn't confirm the payment plan I offered because it had already gone to a revenue officer. I moved so they are transferring things here now. Continuing to make payments until I hear from RO. The man we talked to at the IRS said I didn't have to worry about wage garnishment or them taking my old car. He said they had much bigger fish to fry and that payment plan would be approved.

Having said all that, I just received a certified mail slip from the IRS which worries me. I haven't got the letter yet so I don't know what it is. If I believe the man we talked to on the phone it can't be anything bad so why certified mail? Is it possible the man we spoke to didn't know what he was talking about? He seemed helpful and even confirmed a few things with his supervisor. (I know I said the first letter above was certified but it may have been return receipt requested unlike this one but I can't remember exactly.)

[LadyInTheRed]

Certified mail does not mean bad news. It just means they want confirmation that you received it and what day they received it on. It is also a good way to make sure you know the mail is important.

The letter could be to accept your payment plan and provide payment information, including a deadline to make your first payment. Don't delay picking up the letter and opening it!