My boyfriend is in serious financial difficulties that he is obviously ashamed of, he brushes it under the rug and acts like it is not their. In 2005 they ganished his whole check for back taxes twice. I looked at his pay stub last week and noticed he is still claiming 9 exemptions and married when he's been divorced for almost 3 yrs, he's really only suppose to be claiming 3 exemptions for himself, one of his two sons and his mom. Does this mean he's paying little or no taxes? Does his marital status give him a tax break? or benefit? His student loans are also being garnished $300 from his check. At what point does IRS start garnishing wages. And at what point does student loans get garnished. I want to know how serious this is? I want to know what actions or process that was taken against him or what is actually happening?
2007-01-13 17:23:59 · 5 answers · asked by Smile 2 in Business & Finance ➔ Taxes ➔ United States
thats mean that he was served before all that to court, and when he did not show up ---they took a judjment aganist him, then garnishment start 2 month after, that is in case the creditors knows where he works------the best way to stop this is a bankruptcy---if he still can do it---he does not have to include all acounts in it to start build up after
2007-01-13 17:38:04 · answer #1 · answered by Anonymous · 0⤊ 1⤋
You didn't say exactly how much you think he is indebted. It could take him years and years to pay all that off, i.e. it may hold up your intentions to have a family and kids. And if the two of you should have children, and something happens, be assured he will not have the money to support his child/children and would probably be jailed. It sounds like he is irresponsible, unrealistic, and is not living in reality. For some reason he is oblivious to it all, and in the process has ruined his credit for years to come. By chance did he come from a rich family where everything used to be paid for him by his parents? Or did something happen to him along the way?
People cannot go bankrupt on anything to do with the federal government, so his student loans and IRS debts must be taken from his paycheck if he isn't going to pay them himself. If you are behind with the IRS you can set up a payment plan, but if as you say this continues to happen then it appears he is not earning enough, and his debts count against him and are keeping him from earning more. If he owes over a huge amount for student loans then there is some Ford student loan consolidation group that can set up a payment plan for him, but then he would be on his own to pay that and if he doesn't then it will revert back to garnishment.
When a person owes on credit cards they warn you for 3 months
and then take action against you thru a collection agency, and then garnish your wages unless the government is already taking from your wages.
When a person owes on student loans they warn you for 3 months and then warn you they will collect from you and then they will attach your car, your house, take from your savings, put a hold on your checking account, take any retirement funds he has saved, make him sell any stocks or sell a boat, take anything you own and then if your loans haven't been satisfied they will garnish your wages, garnish any disability check, garnish your SS retirement, and take from you for the rest of your life or until you're either blind or permanently in a wheelchair.
You need to know, as a gf, that unless this guy wakes up and smells the coffee, gets an evening job and a weekend job in addition to his full time job (and doesn't buy you or himself anything) for several years that this relationship isn't going anywhere. And you're not going to be able to change him, help him out, etc. He has to do it on his own. Plus he has children to pay for.
2007-01-13 17:43:31 · answer #2 · answered by sophieb 7 · 2⤊ 0⤋
His check has already been garnished for taxes and student loans. His attempts to minimize the withholding are meaningless because of the garnishment. He may be paying little or no tax through withholding, but he is paying through the garnishments.
When a person has back state or federal taxes, or delinquent student loans, these debts are placed in the FMS (Financial Management Service) database. FMS is the debt collection agency of the Federal government.
Anytime a person gets a refund, the FMS is checked, and the refund is used to satisfy those debts. Your boyfriend may be trying to get little or no refund in the hopes that there will be little for the FMS to take.
When a taxpayer fails to pay taxes and fails to work out a payment arrangement satisfactory to the IRS, the IRS may send a notice to the employer ordering the employer to send part of the paycheck directly to the IRS. Similar process for student loans that are seriously in default. It takes at least several months of delinquencies that have not been addressed by the payor. Multiple notices have been sent to him and ignored.
2007-01-13 17:39:07 · answer #3 · answered by ninasgramma 7 · 1⤊ 0⤋
1. How can they now want payment for something that he filed an exempt for? He evaded taxes by telling his former employer he was exempt. Then after that, he didn't pay his 1999, 2000, and 2001 taxes. He still owed them, he can't waive a magic wand and say "I am exempt." 2. And how come that they go directly to garnish the wages when we haven't received any notices urging us to pay? They have sent numerous letters to your spouse. They were either sent during a time you weren't married to him, or they haven't been mailed with your name on the letter. If the debt is his tax debt alone, you would not have received letters addressed to you personally. 3. And how can the debt go from $1400 to $5000 in such a short period without us being notified? It is not a short period of time. It is 10 years since he started his pattern of nonpayment. The $1,400 might be for one year alone, or the only letter you saw. If these problems arose during a time when you filed a joint return with him, the IRS will disclose everything to you. Otherwise, they may not. You may want your husband to call and you can listen in to find out what he owes, and how long it will take to pay back. The argument that income tax is voluntary isn't going to get you anywhere, sorry.
2016-05-23 23:17:56 · answer #4 · answered by Stephanie 4 · 0⤊ 0⤋
the irs term is levy wages, and they only do it when the taxpayer is uncoooperative. He needs to meet with IRS, you may be more level headed and could go with him if he okays it,
2007-01-13 17:31:04 · answer #5 · answered by Anonymous · 0⤊ 0⤋