Overdue Tax

[keepitusslee]

What is the name of your state (only U.S. law)? Connecticut

Hello,

I recently got a letter that my wife has some overdue taxes from income as a private contractor in 2011. We are both in medical training and have a ton of outstanding student loan debt and essentially nothing in assets. The outstanding taxes are approx 9k. Is it possible to file an OIC (offer in compromise)? Any other avenue I can take to negotiate the amount? I would like to at least see if they can get rid of the approx 1500$ in tax understatement penalty.

Thanks

 

[LdiJ]

What is the name of your state (only U.S. law)? Connecticut

Hello,

I recently got a letter that my wife has some overdue taxes from income as a private contractor in 2011. We are both in medical training and have a ton of outstanding student loan debt and essentially nothing in assets. The outstanding taxes are approx 9k. Is it possible to file an OIC (offer in compromise)? Any other avenue I can take to negotiate the amount? I would like to at least see if they can get rid of the approx 1500$ in tax understatement penalty.

Thanks

Did you and your wife file a joint tax return for 2011? The IRS is not going to accept an OIC unless you can pay a lump sum now that is greater than what they believe that they can collect from you before the statute of limitations expires (10 years). There is almost no chance that they would consider abating the penalty either in a case like this one.

If you didn't file a joint return you might be able to reduce the balance due by amending your taxes to joint, but that would make you both liable for the tax if you did not previously file jointly.

Your best bet would be to set up an installment agreement. The IRS is very reasonable about those.

 

[swalsh411]

Looks like one or both of you is going to have to get a part-time job.

The wikipedia article on OIC is pretty good

http://en.wikipedia.org/wiki/Offer_in_compromise

 

[davew128]

If you/she otherwise has a clean filing history you should be able to request an abatement of the understatement penalty and receive it based on your filing record.

 

[LdiJ]

If you/she otherwise has a clean filing history you should be able to request an abatement of the understatement penalty and receive it based on your filing record.

I haven't had much luck with penalty abatements lately.

 

[davew128]

I haven't had much luck with penalty abatements lately.

It requires persistence and either good facts or something you can point to in the IRM.

 

[LdiJ]

It requires persistence and either good facts or something you can point to in the IRM.

I used to have pretty good luck with them. I know how to argue the points. Its just in the last couple of years persistence doesn't seem to cut it anymore.

 

[Ohiogal]

What is the name of your state (only U.S. law)? Connecticut

Hello,

I recently got a letter that my wife has some overdue taxes from income as a private contractor in 2011. We are both in medical training and have a ton of outstanding student loan debt and essentially nothing in assets. The outstanding taxes are approx 9k. Is it possible to file an OIC (offer in compromise)? Any other avenue I can take to negotiate the amount? I would like to at least see if they can get rid of the approx 1500$ in tax understatement penalty.

Thanks

Were you married to your wife in 2009? Why did you receive a letter if your wife has not paid taxes?

 

[ecmst12]

I think they were married when it happened and are still married now.