Owing Money to IRS and Paying Them Back

[ladyhawk4]

My boyfriend owes $10,000 to the IRS, since 1993, and has been paying approx. $1000/year toward this debt thru his income tax return (they've kept his refunds every year). He called them today (6/28/00) to negotiate a payment plan, but they requested too much a month and refused to discuss other offers. Can they refuse an offer? Should he seek counsel to help him negotiate a fair amount (he can only afford approx. $50/month, in addition to their keeping his end-of-year refund). Would they accept a $2000 or $3000 flat amount thru the "offer in compromise" program, or do they have limits on how much (how little) they will accept? (I would lend him the money since his income is low and he has no bank account). What is meant by the "10-year statute of limitations on collections?" After 10 years of owing, does the debt get wiped out? Can the IRS begin garnishing his wages, even though he made a "good-faith" attempt to negotiate a payment plan?

 

[Tracey]

they don't have to accept any settlement offers from him. They can garnish his wages. He might consider an end-run around their rejection of the $50/month. Have his employer take out an extra $50/month. The IRS will get that much more $$ at the end of the year. If they garnish his wages (which they can), he can always stop the extra $50 payment.

Ask about the offer in compromise program. The worst they can do is reject his offer. I don't know whether an attorney will save him enough $$ to justify the fee. You could see if you can find an attorney who will work on a flat fee basis.

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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.

[This message has been edited by Tracey (edited June 28, 2000).]