Agrv8ng vs. I.R.S.

For several years, I have been dealing with the IRS concerning owed taxes on my wife's income. I have not been employed since 1973,and the only income I have is my Veterans Disability, and Social Security Disability (Not SSI).

Years in question are in the early 80,s. I, not my wife was notified that back taxes were due in the area of $15,000.00. I started to make monthly payments but in 1990 I had to seek relief under a Chap-13BK and made payments to the Court. Some time in 1995 my wife took ill and had to be placed on Social Security disability and I had to finally file a Chapter-7 BK. .IRS then issued Liens against me. I contacted the Problem Resolution Office, and explained my situation and on 11/95 I was contacted and advised they were closing my case at this time. But Liens were filed

In 1999 my wife returned to work under a trial basis from Soc. Sec. I now fear they will not only Levy her income and our checking account but attach, garner or levy my soc. sec and va checks

I know they can not garner or levy SSI checks and I think am not sure they can not touch my VA check, but is my Soc. Sec. Disability safe ???? Also, seeing I was not the wage earner can I be excused from liability??.

I think I should file for an "Offer in Compromise" and if I am granted one and seeing I have made attempts over the years to repay them and I have always been in touch with them can I ask them to remove their liens so that we may purchase a house ???? Sorry for the length of this, but can someone assist me with these answers which would relieve a the mounting stress I now have ??? thanks

John from NC

John. . I am also in NC (right now. . we are military)

I feel your pain, and I am not trying to be sarchastic. Probably the VA has some resources available to you as a veteran to help manage this problem, but I will attempt to give you some minor advice. I am not an attorney and not a CPA.

First off, you may be able to file for innocent or injured spouse safety under the law. This is when you were basically an innocent bystander to the illeged happening. Are you and your wife still married and were you married during the period in question?

It is my understanding that your SS disability cannot be levied nor your veteran's benefits, but I am not certain.

They are required to allow you a certain percentage of income even if they do garn your wages. You might want to go back in the recent years and determine how much, if any, money that they have gotten from you in the form of seized refunds. As well, you may wish to have a CPA look at your last three years tax returns to determine if there is a more economical way for you to file. You can only go back three years for amended returns.

This may cost you a little bit, but you should be able to find a CPA to work for you for less than you would expect. I would give a CPA Power of Attorney for speaking to and dealing with the IRS on your behalf, this is a special form that only the IRS uses, not a regular POA. This will remove the main amount of stress from you because the IRS can now directly talk to the CPA for you. The CPA can make a deal with the IRS for you. And yes, after determining your situation, I would consider and "offer and compromise"

Most importantly, I would make sure that BEFORE you contact the IRS you are current on filing ALL of your tax returns. Even if that means not paying owed money. They will be more willing to work with you if they think that you are being honest.

Sorry for the long response.