My husband owes 16,000.00 in back taxes. (this was before we were married)They told him he needs to do a financial statement. Will they determine the monthly payment? We are saving for a house in about a year but this has changed things. Can anyone give us some advice. By the way he wants to send them 300.00 per month. HELP!!
2006-10-10 12:31:05 · 7 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Does the 16,000 include state taxes as well as federal, or does he need to call the state IRS too?
2006-10-10 13:03:09 · update #1
Your husband needs to file Form 9465, An Installment Agreement Request, which may be obtained using the link below. They will either approve or disapprove your request. It is usually a good idea to go and talk to someone at your local IRS office and get their assistance. Sometimes it is better to file in person than through the mail. If you have any trouble, you may want to engage the services of a licensed public accountant or Enrolled Agent; although it is getting harder and harder to try and settle with the IRS .Good luck.
2006-10-10 12:40:51 · answer #1 · answered by fearslady 4 · 0⤊ 0⤋
I am sorry about your situation. Get an IRS CPA and ask for advice---there are also many other financial specialists out there that are affiliated with state banking associations, which will also be able to give you several options. Go together. Try not to fight about this, just try to work things out---the solution may take time, but it will pass faster than you think. The financial statement is used for determining payment. Obviously, your best bet is to get out from under this as soon as possible. If you do have money saved for your house, I would use it. And, you will just have to start from square one. There are also low interest, low down payment loans out there for first time buyers--look around. Take it one day at a time--and, again, try not to get upset about it. Albeit, it is a situation that is upsetting, but you are better off looking at this with a calm and clear headed attitude. The IRS will help you as much as you can if you work with them and are communicative, patient, calm, and clear headed. Wishing you the best!
2006-10-10 19:48:08 · answer #2 · answered by What, what, what?? 6 · 1⤊ 0⤋
First thing you will need to do is to save the money for the house in some account under some other name and social security number. The IRS likes to levy accounts, so you need to put the money someplace where they cannot find it. If they have placed a federal tax lien on him then that will show up in public records once you apply for a mortgage. usually a bank would want outstanding debt showing up in public records to be satisfied prior to loan closing.
When he works up a financial statement the IRS will send an installment agreement with a specified monthly payment.
I used to have this problem and for a long time I would take my paycheck to the bank and cash it, then run to the post office and pay everything with money orders. It will get to the point where any account you have with any sort of a balance might disappear overnight. It's a royal pain in the butt.
At one point I got sick and tired of the nonsense so I offered to do jail time instead of paying. They laughed at me and said no.
One way out of this is to get work where the money is not reported on W-2 or 1099 forms. Get your reported income low enough and then earned income tax credits and child tax credits (if you have kids) will kick in and you could actually get a refund of up to about $4500 a year even if you have a small income and pay nothing in tax. They will offset the refund and apply it to the tax owed.
On the plus side the interest rate the IRS charges is lower than what you would be charged by a bank so it's really not a bad deal if you dig this sort of thing.
I've been through all of this happy horse shitt.
2006-10-10 19:44:37 · answer #3 · answered by Kokopelli 7 · 0⤊ 3⤋
Seriously, you and your husband should retain the services of a CPA that specializes in matters with the IRS. The IRS will try to get a commitment for as much money per month they can. It was not that expensive, he straightened out problems I had from 16 years prior, got things resolved. I recommend a local CPA, not a national firm i.e. JK Harris. Not that there is anything wrong with a national firm, dealing with a local CPA they have to be good and right. It took me three visits with three different CPA's before I was comfortable.
2006-10-10 19:37:59 · answer #4 · answered by Anonymous · 1⤊ 0⤋
In response to your 'Additional Details', the state Department of Revenue is independent of the IRS. You can own money to one and be due a refund from the other. They don't share information.
2006-10-10 22:44:37 · answer #5 · answered by STEVEN F 7 · 0⤊ 0⤋
Get an IRS attorney. You do not want to negotiate with the IRS alone!
2006-10-10 19:38:46 · answer #6 · answered by canine582002 2 · 0⤊ 0⤋
dont forget to add the interest the longer it takes to pay the interest keeps acruing ....he needs to pay them off asap if he can get a loan with a lower interest rate i would do that rather than pay their high fees plus that will get them off your back
2006-10-10 19:34:09 · answer #7 · answered by Anonymous · 0⤊ 0⤋