Long time no hear from but here's an update

[southernbelle]

It's been a while since I've posted, but I felt the need to post an update on my situation and check in with old friends.

As you guys know, I'm dealing with the non-dischargeable taxes owed to the IRS from the business I closed in '07. With the help of an Enrolled Agent, we've been able to request a CDP (Collections Due Process) hearing which is scheduled via telephone tomorrow at 1:00 pm. I've submitted all of the paperwork she requested which includes an OIC and I'm hoping for the best.

The EA is very positive, however just like when going through Bk I will worry until the final verdict is in. My only hope is that she will have an open mind and will be reasonable since I have no money and no assets. At this point all I really want is a payment plan with payments I an afford. I'm tired of being afraid of what's in the mailbox and when the next certified letter will arrive.

Well that's all for now. Wish me luck. I'll post an update when I get one. Thanks again everyone for all of your moral support and kind words since this all began. Hopefully this will be a final resolution to all of the financial trouble caused by that dreaded business and my awful ex.

[justbroke]

I wish you luck, sothernbelle.

[FLBK7]

Best of luck, southernbelle! Please do let us know how it goes. I have never personally had issues with the IRS but know people who have. They all say that although they can never "get rid" of those payments, they were their 'friendliest' creditor in that they are willing to work out payment plans. I hope this is true for you too!

Sending positive thoughts your way!

[dscurlock]

The govt tells other creditors what they can and can not do..but the
IRS is the biggest RIPOFF of them all..they turn around and do the
opposite of what other creditors can not do...

You can write off creditors in BK.

You can not write off the IRS, and they charge you
massive amounts of penalites and fees, and one on
top of the other, and a lot of times, even some of
the very small amounts owed to the IRS go missed,
and they become huge amounts owed in just a short time.

Ironic isnt it....

why can not the IRS have the same rules of
other creditors? more govt control no doubt...

[justbroke]

why can not the IRS have the same rules of
other creditors? more govt control no doubt...

They actually share most of the same rules.

Specifically to penalties and fees, the penalties are actually general unsecured debt and are dischargeable (along with the interest on those penalties). Since southernbelle's taxes were from 2007, they don't fit the "certain" requirement (3 years since due, 2 years since filed, 270 days since assessed). Otherwise, they would have been toast!

You can file motions against the "United States" for stay violations! You can hold them in contempt and you can even have them sanctioned! You can also have tax debt discharged, if it meets a certain criteria.

The problem is, most people don't want their name in lights. Can you imagine the caption "Justbroke v. United States of America". Sounds nice, but then the Attorney General's attorneys come out of the woodwork. It does happen though and people do challenge the taxes. I think it's much easier to challenge the IRS in a Bankruptcy matter because that Court takes jurisdiction from the (US) District Court. I'd rather be up against the IRS in Bankruptcy Court than the (US) District Court.

It's not about control, it's about the Government losing lots of revenue from a en-masse bankruptcy filings. Otherwise, people would just accumulate a lot of federal tax debt, and then immediately file bankruptcy to expunge it.

[dscurlock]

If there is money to be made. I assure you the govt is making it...
ON EVERYTHING! now them spending it wisely is another matter...

Justbroke v. United States of America

that has a good ring to it...stick with
what works..hahah...

Justbroke in the USA

[southernbelle]

Thanks justbroke and FLBK7. I appreciate the good vibes. I feel positive and will keep you guys updated.

[justbroke]

If there is money to be made. I assure you the govt is making it...ON EVERYTHING! now them spending it wisely is another matter...

I don't disagree but I want to expand what you wrote. It isn't the "Government", because the Government consists of duly elected (and appointed) People. So, the real goal of Senators and Congresscritters, is to get as much as they can for the People that will keep them in office... and by People I mean Wall Street. Did I say Wall Street? I meant Bankers? Ooops, or was that healthcare executives? Wait, wasn't it oil company executives in the last Administration?

I loose track. (I also end this line of political talk because it's in the wrong forum area.)

[AngelinaCat]

Good luck 'Belle 'Hub and I have been wondering how you were doing.

[PoorGrammyinBK7]

Good to hear from you. I really hope it works out for you! You deserve a break. Thanks for checking in.

[southernbelle]

Okay, after a LONG week of stressing out, here's the "almost" final conclusion to my IRS tax issue. I talked to the appeals rep. for about an hour, she was REALLY nice and the experience was totally different than what I expected. We reviewed all of the expense / income information I submitted to her and she allowed me to be on a payment plan of $300 a month for the first year, then told me that the agreement will be re-evaluated at the end of the year and it will increase based on my actual expenses/income at that time (like a chapter 13 payment plan with fewer allowances). Given my situation, she was able to waive the penalties on the entire tax bill which will save me about $10-$15k. I just hope my house won't require any major repairs when my payments increase because the roof is questionable.

After the first year, I will have to go back and negotiate with them to get reasonable payments but at least I finally have a realistic idea of what I have to do to put this entire thing behind me. Because of the BK, I roughly have about 9 years left on the CESD which means I will have to deal with this for a while longer but at least I know where I stand and don't have to be afraid to check the mail any longer.

This proves that not all IRS agents are awful people that don't care because this lady was compassionate and helped me more than I thought she would. Granted, there was only so much she could do for me but I really appreciated the time she spent with me to explain everything. I even called her back to get an explanation on some things she talked with me about and she was really helpful.

I feel so much better and would like to thank you guys for the emotional support.