Is there anything they can't take or do? I have a friend you had a contract job and they only took out state and she didn't know that. Now she's in debt for 6k. Do they look at your assets or just make up a payment shedule based on a salary she can hardly live on now? Is it better to ignore it and figure she's better off not getting involved with them?
2007-08-21 08:43:18 · 7 answers · asked by hb12 7 in Business & Finance ➔ Taxes ➔ United States
Before seizing and selling a taxpayer's personal residence, IRS has to get a court order autorizing the action. The taxpayer has an opportunity to offer a defense. It is very rare for this to happen. If the debt is only $6,000 it's not going to happen. A payment agreement that would pay the liability off in three years (figure about $200 per month) would be granted without question.
2007-08-21 12:28:19 · answer #1 · answered by Anonymous · 2⤊ 0⤋
DO NOT IGNORE THE IRS. There have been cases where the IRS has taken a house because of taxpayers not being cooperative at all. But that is only as a last, last, resort. They look at assets and income level. She could try and enter an installment agreement where she pays them a set amount each month until the tax owed is paid off. Or she could also try an offer in compromise where she pays the IRS less than 100% of the tax owed.
2007-08-21 08:54:54 · answer #2 · answered by Anonymous · 4⤊ 0⤋
“….Is it better to ignore it and figure she's better off not getting involved with them?”
If you ignore them they will NOT ignore you.
I hate the IRS and the income tax and that is why I am pushing for the FairTax Act.
YES, they can take the house. The IRS has been trying to be a little more compassionate and not toss people out but don’t count on that. The IRS will try to work out a payment plan if you work with them. GET a lawyer to act on your behalf if you can.
The other responders here have it right. Document everything, and get representation of some kind, AND DO NOT IGNORE THE IRS.
2007-08-21 12:29:51 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Tell your friend to contact the IRS immediatly and set up some type of payment plan. They will set up something that will suit her income. Do not ignore the situation, they can and will take everything in order to settle the tax debt. The first thing they'll do is put levy's on all assets owned by your friend and if that doesn't work they'll start to take the assets.
2007-08-21 08:52:39 · answer #4 · answered by Barry 1 · 3⤊ 0⤋
"Don't mess with the IRS." It's a good quote to live by. Whether they're right or wrong, they win. The can garnish wages as the please and don't have to worry about how much you have left to live on. She can contact the IRS and try to create a settlement but it's not going to be easy or cheap. Get EVERYTHING in writing, and consider getting a highly specialized tax lawyer involved if necessary.
2007-08-21 08:51:41 · answer #5 · answered by CSUflyer 3 · 1⤊ 1⤋
The IRS can put a lien against your house, they can garnish your wages, but she should try and hire a lawyer,
but most likely they will set you up on payment arrangements,
avoiding them will make it worse for her.
2007-08-21 08:52:33 · answer #6 · answered by Anonymous · 1⤊ 0⤋
Thanks to each and every one of you guys for the replies.
2016-08-24 13:00:11 · answer #7 · answered by ? 4 · 0⤊ 0⤋