I OWE $27,000 dollars in back TAXES?

Question

My soon to be ex wife filed her taxes married filing seperately and now I am stuck with the entire bill. I know longer work in the same Industry and am going bankrupt due to the divorce. My income is now reduced to below $30,000.00 and I pay out $700.00 a month for one child. Has anyone had any luck dealing with the IRS? My Tax accountant was speechless and said he was going to use me as an Example to his other and prospective clients. HELP

Answer 1

See a tax lawyer...sometimes they can get the debt reduced or work out payment plans with the IRS and sometimes (but rarely) they can even get you a tax forgiveness.

Also, it sounds like you may be able to sue your ex-wife for damages and report her to the IRS because she can't stick you with the entire bill if you didn't earn the income

Answer 2

I am assuming that this is a personal 1040 liability - correct? Is the tax debt based on your income alone? If you and your wife were not separated during tax year of this liability - she may or may not be liable for the tax debt with you - the circumstances really need to be reviewed by an IRS representative. I suggest that before you go and hire a tax attorney, that you actually call the IRS (1-800-829-1040) or log onto their website (www.irs.gov) - or find your nearest IRS TAC office (you should be able to locate an office on the web page). If you try to actively resolve your tax liability - the IRS will generally try to work with you. Be honest with the representative - tell them your issues. If you file bankruptcy due to your divorce, then make sure that the IRS is included and notified. The commercials that guarantee "pennies on the dollar settlements" can be very misleading. Those settlements still have to be accepted by the IRS, and may or may not happen. Your first route is opening the door of communication - Knowledge is the key factor here - Find about about your liability, what your options are, and what actions need to be taken. Keep in mind that your accountant can't do the talking for you if he or she is not authorized by you to do so(Power of Attorney). You also need to keep in mind that interest accrues daily on tax liability - and penalties exist that add to that liability -- so this is not something to sit on.

Answer 3

You better get a tax attorney or you could end up in very deep trouble if you don't have any property that can be sold to pay off that debt. The IRS does not play around and you need someone on your side, who knows the rules because they aren't going to help you. Usually, they are trying to get as much money as possible from you.

Answer 4

As a worst case scenario, if you are truly going bankrupt as a result of the divorce, ask your attorney about filing a Chapter 13- they cover tax liabilities that are less than 3 years oldddd (even non-filed tax returns) and this may give you some relief.

Answer 5

Whatever you do, do not call one of the places that advertises on TV (the we settle for pennies on the dollar). Generally, they take your money and run.

You may be elligible for an "Offer In Compromise" (OIC). Unfortunately, Congress just changed the rules to make it harder to apply. It is a very time consuming process but it can be done. Seek professional help from a CPA or EA that specializes in these in your area.

Answer 6

You can either get a tax attorney, or call the IRS ~ they do allow payment plans and they will work with you. When you try to run and hide thats when you get in trouble. Good luck

Answer 7

i don,t know answer, but am in situation where gov
clobbered me due to spouses death. am going to call irs and ask some questions. am a citizen and feel i have rights. keeping my fingers crossed and applying for grant lou

Answer 8

seek a tax lawyer they are usually settled for pennies on the dollar