I owe big tax

[windward402]

What is the name of your state?OR
I was audited last year for 03 and owe an additional 5500 in tax. I ammended my return to reflect that now my bill is up to 11k (penalties and interest) they have just got around to finally assessing it. I do not have the means to pay off. I am employed and I own a mobile worth 20k . I am WELL BELOW the means test, I am negative every month. I have offered to pay 65 a month and they indicated they will not accept that amount. I want to know if an OIC would be my best bet. IRS indicated that if I do a statement of assets and find I can't pay them back I will have a federal lien against me (they scare the crap out of everyone when they say that so that must be the standard). I do have an appointment with legal aid but not until after the first. Any suggestions?? Also, I will be filing BK late next year. I want to protect my mobile and my car. Thanks for the help.....

 

[Snipes5]

If you were audited, why did you then amend your return? Normally if there is an audit, the auditor adjusts your return for you, usually at the time of the audit.

If you owed $5500 in additional tax, I fail to see why an amended return would result in a debt of $11,000. Did you ask them to abate any of the penalties?

Please tell us the rest of the story.

Snipes

 

[windward402]

If you were audited, why did you then amend your return? Normally if there is an audit, the auditor adjusts your return for you, usually at the time of the audit.

If you owed $5500 in additional tax, I fail to see why an amended return would result in a debt of $11,000. Did you ask them to abate any of the penalties?

Please tell us the rest of the story.

Snipes

I did not add an ira withdrawal for a down payment on my house. I did not think of it as income at the time (I was newly single after 18 yrs of marriage doing my taxes for the 1st time, no excuse for error just letting you know how it came to be) When they sent me a discrepency notice, I immediately got a lawyer(when i had money) to help me ammend the return. I have kept in contact with irs every step of the way. I have sent them 75 a mo. since this started. I do not have the means to pay back in full. Like I said I have offered over the phone to pay but it's not what they will accept. I am confused with doing a statement of assets or OIC. IRS indicated like I said that if I do a statement of assets and do not have any means of paying the said they will automaticaly throw a lien against you. What about an OIC? They have indicated that my car and mobile are probably exempt but they will file a federal lien and will make my life a living hell trying to get anything in life once people know it's there. I take home about 1k a month and support 2 people. My new husband applied for SSI but then again that is a whole subject all it's own!!!!!!!! I have a 1/2 appointment with legal aid next month but I would like to know other opinions and suggestions if possible. Thanks for your reply!!

 

[Orebell]

Federal lien

I don't know all the ins and outs of the law. I had a friend of mine who did not file his return and because he did not file his return the IRS filled out his return for him and taxed him accordingly. This was like 15 years ago. He did own a home and they eventually file a lien on the home. The home was sold a year ago and the IRS took $50,000. It has taken me almost a year, but I filed a return for him and got $40,000 of the $50,000 back. It was simple actually, all I had to do was file the return with the information I did have.

The point I am trying to make is this. If they end up filing a lien on your home, they will not collect that lien until the home is sold. Just never sell the home.

I was a little confused about your initial post. You said you owed $5500 in taxes for one year. That seems like a lot of federal tax owed for someone who says they do not make a lot of money. Even with your updated info telling us about the IRA withdrawl for a downpayment on a $20K home I still do not understand how you could owe an additional $5500 in taxes for one year. You said you take home about $1000 a month. In 2003 was your income higher? Something is just not making sense.

Regardless of all that, if you do not have the means to pay, then you do not. I believe the IRS will look at an OIC but you have to fill out a form which lists your assets and liabilities. I have no idea what sort of determination they would make though. Hopefully legal aid will be able to help you.

Best of luck to you. Be sure not to let the IRS bully you. If they start making threats, well I say tell them to knock off the scare tactics. I probably would yell at them and chew them out for that. They can do whatever they want I suppose but they cannot squeeze blood out of a turnip meaning if you do not have the money, they can't get it from you.

I did not add an ira withdrawal for a down payment on my house. I did not think of it as income at the time (I was newly single after 18 yrs of marriage doing my taxes for the 1st time, no excuse for error just letting you know how it came to be) When they sent me a discrepency notice, I immediately got a lawyer(when i had money) to help me ammend the return. I have kept in contact with irs every step of the way. I have sent them 75 a mo. since this started. I do not have the means to pay back in full. Like I said I have offered over the phone to pay but it's not what they will accept. I am confused with doing a statement of assets or OIC. IRS indicated like I said that if I do a statement of assets and do not have any means of paying the said they will automaticaly throw a lien against you. What about an OIC? They have indicated that my car and mobile are probably exempt but they will file a federal lien and will make my life a living hell trying to get anything in life once people know it's there. I take home about 1k a month and support 2 people. My new husband applied for SSI but then again that is a whole subject all it's own!!!!!!!! I have a 1/2 appointment with legal aid next month but I would like to know other opinions and suggestions if possible. Thanks for your reply!!

 

[Snipes5]

What you describe is not an audit.

How much money did you take out of the IRA?

Contact the office of the Taxpayer Advocate. If what you say is true, the IRS is treating you in an unreasonable manner.

Google "Office of the Taxpayer Advocate" and contact them, they will be able to make sense of the mess and get it sorted out for you.

Snipes