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  #1  
Old 11-29-2003, 01:44 AM
elvapet
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car and unpaid taxes.


What is the name of your state? IL

I need some good info on IRS vehicle seizure, what to expect and when.
I just started reading a book on resolving tax problems but it seems to not be helpful...

PROBLEM...my girlfriend of the last year bought a new car 6 months ago but a change of jobs requires her getting a car before the end of 2003 so she wants me to take over her payments (60 months, cost of the car $18,000) but I owe to the IRS a lot of money, about a years income in unpaid income taxes. I like to know what I am getting into before I sign documents.
I am attempting to work out a resolution with the IRS but until then I need to know...

what is the general rule for the IRS to seize vehicles? it is the only car I would own, needed to get to work.
what is the likelihood the IRS would/could seize it in the first year of payments?
...in the second year?
...in the third?
...in the forth?
...in the fifth?
...after it is paid off?

should i ask the irs?

how can I tell NOW what they IRS will do and will not do? how can I make sure I get fair treatment?
  #2  
Old 12-01-2003, 09:32 PM
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Join Date: Aug 2002
Location: Washington
Posts: 3,484
The IRS can put a lien on the car, however, the finance company has first dibs on any money available from the sales of the car. In other words, the IRS won't bother foreclosing on the car unless they will get some money out of it. That would be after you pay it off.

Your best option is to pursue an offer in compromise, where you offer the IRS a reduced amount & they take it because it's better than nothing. Why exactly do you think it's "unfair" for the IRS to make you pay your taxes & charge you interest on the unpaid amount? Sounds pretty fair to me.

Vehicle siezure is not your problem -- the IRS will garnish your wages. Don't sign for the car unless you can make the payments & cover your living expenses on 75% of your current take-home pay.
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This post does not constitute legal advice, nor does it create an attorney-client relationship. Postings are based only on the information provided and you should consult an attorney in your area before relying on information contained in this post.
  #3  
Old 12-03-2003, 06:11 PM
elvapet
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Posts: n/a

car seizure.


what i meant by being treated fairly, wanting to know how how i can be treated fairly by the irs,
is that i do not understand the irs collection rules and the irs could try to implement a deal or situation that was not fair and i would never know, what could i do? i.e, i could qualify for a settlement of $$ and the irs could refuse to settle for less than $$$$ because there is no arguing with the irs.

also, a friend told me that if i buy this car from my girlfriend the irs could find out, seize the car and not sell it but simply impound it and hold on to it until i did whatever they wanted. i have no idea if this would be allowed or what... but i have no money for an attorney so i would be stuck.

but regardless, thanks for the info abezon. i was wondering how much the irs could garnish but couldn't find out so far.
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