IRS problems...?

Question

My friend has issues with IRS, Ive posted them before....Thing is he slacking with doing anything with it. He has a deadline...He needs to get certain papers to them or start paying them some of his return back. About 3,000. He is asking is the IRS will arrest him? Or garnish his paycheck?

Yes That was my question before...But they thing is he didnt falsely claim his neices. He just needs to proof more info, which he cant. His brother is his half...That info is ok Im thinking. No one else claimed the girls....But also want proof he was living there last year. That he cant proof - other than the borthers family and him...their mom and the brothers gf mom lived there...so most things are in the brothers gf moms name...Confusing: YES!! LOL

Thanxs Judy....Yea I doubt he can find anything...Most important things were at a certain address (20th st). And thats where IRS info goes and lisence says...Which that is not the address they lived at all year..They moved about 4 times last year, 2 times being with the same landlord different home. So finding two things that match is very hard.

Answer 1

If your friend lets the deadline go by without responding, he is basically agreeing with whatever has been said by the IRS, and will most likely lose his chance to contest anything. If what they said is correct anyway, though, that won't matter.

They will not likely arrest him, although if fraud is suspected, anything can happen. But if he's supposed to be making payments and doesn't, they will almost certainly garnish his wages and possibly put a lien on his assets.

I tried to go back and look at your earlier questions, but you have your questions marked "private" so I couldn't.

OK, now I see your additional info. The brother being a half-brother wouldn't matter, that part is OK. But if he can't prove that he lived there, then he's out of luck - he can't just claim them because nobody else does - this year the IRS has really cracked down on that sort of cheating. Does he have paystubs that show that as his address? THOSE would be in HIS name, not the brother's gf's mom's. Any magazines he got delivered there? Any personal bills at all? What did his drivers license say?

If he didn't really live there and was just trying to scam the system, then he got caught, and might as well just pay back the money. And if he can't prove in any way that he lived there except by claims from relatives (the IRS probably won't just accept that), then he's out of luck anyway.

Answer 2

Arrest: Probably Not.

Garnish: Yes.

I think that I remember your original question. He put a kid or two on his return that arn't his and he received a large refund due to the EIC. That may cross the line to become fraud but it would depend on the IRS examiner. I doubt that they would pursue a fraud case for EIC but it is possible.

The more likely scenario is that this wages will be garnished until the $3k (plus interest) is paid off. As it was a fraudulent act to begin with, there is probably no way to stop the garnishment. One way or another, he needs to pay this money back.

Answer 3

He won't be arrested, but the irs could garnish his paycheck, levy bank accounts, go after assets he has. His best bet is to enter into a installment agreement with the irs.

Answer 4

Arrest is unlikely.
Garnishment of wages is more likely, along with increasing fees and penalties and interest.

Plus, the IRS is turning over cases to collection agencies now, so it will also potentially hurt your friend's credit.

Answer 5

It seems like he's making bad choices. If he doesn't respond, then garnishment is likely. While he won't be arrested over $3000, a failure to comply with their requests could lead to additional trouble.

Answer 6

what?