Is My Tax Debt Expired?

[elvenom]

What is the name of your state? Arizona..but I was a legal resident of NJ when the tax returns were filed.

Here's my situation. I owe approximately 23,000 in taxes for 1997. My accountant amended the return in 1998 so I'm assuming that is the year that the tax was 'assessed' and when the 10 year statute of limitations started, is that correct? Anyway, the IRS put a levy against me in 1997 and its on my credit report, but I have never owned anything significant so they never really acted on the levy. I think the statute for collections is almost up and now they are trying to levy me again. But again, don't own a house or a car or anything like that.

They could send a wage levy to my employer and that would really hurt me. An accountant advised that I do a Chapter 13. I'm wondering if it is cheaper in the long run to [B]a: wait it out until the collection statute expires (not sure when that would be exactly so I guess I would need to order an account transcript from the IRS?) and hope they don't try to garnish me or b: let them garnish me until the statute expires because it will probably be cheaper than repaying via a Chapter 13..[/b]

I'm so confused! I've never made an Offer in Compromise or an installment plan. Basically, I've slipped thru the cracks for 10 years. I'm not proud of it but I really can't afford to pay this back. ANY advice would be helpful. Thank you!What is the name of your state?What is the name of your state?What is the name of your state?

[irsos]

A Chapter 13 bankrupcty would be very ill-advised. It will suspend the statute of limitations. If you were to file a BR - Chapter 7 would be the best approach since it would likely discharge the taxes.

All that said, you should do exactly nothing, other than to order a Record of Account to see if and when the statute of limitations expires/expired. If the IRS is not bothering you, why would you be worried about this matter at this late date?

[TinkerBelleLuvr]

1. Have you been filing taxes since 1997?

2. If you have filed, have their been refunds? If so, did you receive them?