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Old 05-31-2008, 02:34 AM
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Join Date: Oct 2007
Posts: 5

IRS debt VS Collection agency


What is the name of your state? NY

I currently have serious debt issues, debt collections for medical bills (no insurance) and a tax bill from 2001, which they just audited me for. I owe 5 grand to the IRS, and I am making payments monthly plus they are taking my federal tax returns to satisfy the debt.
I was told by the IRS that their debt supercedes any judgements either current or future judgements, basically they get paid first regardless of anyone else. I was also told that if the IRS finds out I am currently paying off a judgement they can seize that money as well.
Is this true and what do I tell the collection agency who currently has a judgemant against me? I cannot afford to pay the reguired IRS monthly bill plus the judgement. What do I do?
  #2  
Old 06-01-2008, 09:11 PM
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Join Date: Jan 2005
Posts: 2,336
So long as you are current on your payment plan to the IRS, I would not think they would care that you were also paying someone else. I venture to say that most people who have back tax problems owe a lot of other people also.

You may wish to consult a bankruptcy attorney. You cannot discharge the IRS in bankruptcy but you could perhaps get a clear start with everyone else.
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