Comments on: Dealing with the IRS: How screwed am I? http://www.debtkid.com/dealing-with-the-irs-how-screwed-am-i Debt Kid - I'm Getting Out of Debt Sat, 21 Nov 2009 04:28:43 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Mike http://www.debtkid.com/dealing-with-the-irs-how-screwed-am-i/comment-page-1#comment-13078 Mike Sun, 26 Oct 2008 18:43:31 +0000 http://www.debtkid.com/dealing-with-the-irs-how-screwed-am-i#comment-13078 First, bankruptcy filings have no impact on your taxes due although they may add weight to future negotiations. Second, it is a very good idea to get a CPA or Enrolled Agent (EA) to advocate for you. The newest IRS rules allow the same protections for CPAs and EAs as Attorney-Client priveldge. Third, only hire CPAs and EAs that have a Master's degree in tax (on their business card it will look something like; Jane Doe, CPA, MST), they specialize in tax LAW, but are typically less than half the cost of tax attorneys. Fourth, do not sign anything until you get it reviewed by a CPA or EA. Penalties and interest can still accrue on the ORIGINAL TAX DUE not just the balance due. Anyone who guarantees to reduce the amount owed to the IRS is a) lying; b) breaking the law; c) not authorized to represent you to the IRS. Fifth, while an Offer-in-Compromise sounds good, it is typically only accepted if the amount negotiated is paid within 60 or 90 days. Sixth, the IRS does not have the same obligations to be open and upfront as credit agencies or even collection agencies. They are self regulated and courts almost never question IRS regulations unless they specifically go against the original Tax Code. The agreements negotiated by IRS agents are not binding until accepted after review (sometimes a board, sometimes a manager). Finally, if you really can't afford a CPA or EA, then talk with the Taxpayer's Advocate (an independent arm of the IRS). Typically, they will not help until you have had no success with the normal IRS process, but they may be willing to read and explain the payment plan agreement (including loopholes and how much your payments will go toward reducing your balance) or any other settlement agreement. IMPORTANT: You are now allowed to bring a recording device, including a video camera, to any interviews. I suggest you do so in the event what you heard and what the agreement said are different. Most of the time you don't need a professional with the IRS, but if you owe more than $5000 and/or 10% of your annual gross pay, hiring a professional is a good plan. But do your research, ask for references that were represented by the pro to the IRS not just normal accounting business and understand that they can only guarantee to do their best. My mom started off with an IRS agent that realized she was poor and arranged a payment plan that would allow her to do a little better than just survive. Unfortunately the Agent's manager would not sign off on it and after a 4 1/2 hour "interview" during which the manager exposed a deep knowledge of her personal life, the manager intimidated her into signing a payment plan that she couldn't afford by saying, "You might as well sign this since, if you don't, we can garnish your wages and take even more." First, bankruptcy filings have no impact on your taxes due although they may add weight to future negotiations.
Second, it is a very good idea to get a CPA or Enrolled Agent (EA) to advocate for you. The newest IRS rules allow the same protections for CPAs and EAs as Attorney-Client priveldge.
Third, only hire CPAs and EAs that have a Master’s degree in tax (on their business card it will look something like; Jane Doe, CPA, MST), they specialize in tax LAW, but are typically less than half the cost of tax attorneys.
Fourth, do not sign anything until you get it reviewed by a CPA or EA. Penalties and interest can still accrue on the ORIGINAL TAX DUE not just the balance due. Anyone who guarantees to reduce the amount owed to the IRS is a) lying; b) breaking the law; c) not authorized to represent you to the IRS.
Fifth, while an Offer-in-Compromise sounds good, it is typically only accepted if the amount negotiated is paid within 60 or 90 days.
Sixth, the IRS does not have the same obligations to be open and upfront as credit agencies or even collection agencies. They are self regulated and courts almost never question IRS regulations unless they specifically go against the original Tax Code. The agreements negotiated by IRS agents are not binding until accepted after review (sometimes a board, sometimes a manager).
Finally, if you really can’t afford a CPA or EA, then talk with the Taxpayer’s Advocate (an independent arm of the IRS). Typically, they will not help until you have had no success with the normal IRS process, but they may be willing to read and explain the payment plan agreement (including loopholes and how much your payments will go toward reducing your balance) or any other settlement agreement.

IMPORTANT: You are now allowed to bring a recording device, including a video camera, to any interviews. I suggest you do so in the event what you heard and what the agreement said are different.

Most of the time you don’t need a professional with the IRS, but if you owe more than $5000 and/or 10% of your annual gross pay, hiring a professional is a good plan. But do your research, ask for references that were represented by the pro to the IRS not just normal accounting business and understand that they can only guarantee to do their best.

My mom started off with an IRS agent that realized she was poor and arranged a payment plan that would allow her to do a little better than just survive. Unfortunately the Agent’s manager would not sign off on it and after a 4 1/2 hour “interview” during which the manager exposed a deep knowledge of her personal life, the manager intimidated her into signing a payment plan that she couldn’t afford by saying, “You might as well sign this since, if you don’t, we can garnish your wages and take even more.”

]]> By: Jim http://www.debtkid.com/dealing-with-the-irs-how-screwed-am-i/comment-page-1#comment-7986 Jim Fri, 14 Mar 2008 21:01:27 +0000 http://www.debtkid.com/dealing-with-the-irs-how-screwed-am-i#comment-7986 DK the IRS is the last thing you want on your case. If you could get any credit I would get them paid ASAP. They can come in and take money from you whenever they feel like it. If you do a payment plan and miss a payment, they'll just take money from you anyway. This is why the IRS is such a huge threat. It sounds like you're 18k in the hole with them, is there any way to an Offer in Compromise with them? These are rarely approved so doing a payment plan with them might just be your only option. I would put this debt on the top of your list as far as whom to deal with first. DK the IRS is the last thing you want on your case. If you could get any credit I would get them paid ASAP. They can come in and take money from you whenever they feel like it. If you do a payment plan and miss a payment, they’ll just take money from you anyway. This is why the IRS is such a huge threat. It sounds like you’re 18k in the hole with them, is there any way to an Offer in Compromise with them? These are rarely approved so doing a payment plan with them might just be your only option. I would put this debt on the top of your list as far as whom to deal with first.

]]> By: debt kid http://www.debtkid.com/dealing-with-the-irs-how-screwed-am-i/comment-page-1#comment-7985 debt kid Fri, 14 Mar 2008 19:11:13 +0000 http://www.debtkid.com/dealing-with-the-irs-how-screwed-am-i#comment-7985 @ Ben, really you only charge 8% of the original debt? Well golly shucks, let me get out my checkbook right now. Let's see, that about $24,000 right? Where should I mail that? You're part of the "faith referral network"? Yeah, I love you guys, look what I wrote about this company: http://www.debtkid.com/god-wants-me-to-get-a-payday-loan Now, please don't comment here again. @mapgirl - It all came due at once? Yikes, I'll make sure that I get as small of a payment as possible. If I ever can pay it all off, then I'm sure that would be allowed. Thanks for the tip. @ Ben, really you only charge 8% of the original debt? Well golly shucks, let me get out my checkbook right now. Let’s see, that about $24,000 right? Where should I mail that?

You’re part of the “faith referral network”? Yeah, I love you guys, look what I wrote about this company: http://www.debtkid.com/god-wants-me-to-get-a-payday-loan

Now, please don’t comment here again.

@mapgirl – It all came due at once? Yikes, I’ll make sure that I get as small of a payment as possible. If I ever can pay it all off, then I’m sure that would be allowed. Thanks for the tip.

]]> By: mapgirl http://www.debtkid.com/dealing-with-the-irs-how-screwed-am-i/comment-page-1#comment-7980 mapgirl Fri, 14 Mar 2008 14:25:00 +0000 http://www.debtkid.com/dealing-with-the-irs-how-screwed-am-i#comment-7980 Delete the spam comment from Ben and go meet the IRS. I had back taxes owed and the IRS is not screwing around with you. If you think you are going to have any problem whatsoever making every single payment on time, reconsider what you are doing. I made a payment agreement for installments and it looked great at first. But then I missed one payment and it all came due at once. I was fortunate to be able to call and continue my original agreement, but it sure moved the IRS to the top of the list for bill payment every month, over any other creditor, till the back taxes were paid off. If anyone is wondering, I owed about $5-6K in the original amount. Like any other installment loan, once I was paying it off, it was easy to do and I haven't heard a peep since from the gov't. Good luck! Delete the spam comment from Ben and go meet the IRS. I had back taxes owed and the IRS is not screwing around with you. If you think you are going to have any problem whatsoever making every single payment on time, reconsider what you are doing. I made a payment agreement for installments and it looked great at first. But then I missed one payment and it all came due at once.

I was fortunate to be able to call and continue my original agreement, but it sure moved the IRS to the top of the list for bill payment every month, over any other creditor, till the back taxes were paid off.

If anyone is wondering, I owed about $5-6K in the original amount.

Like any other installment loan, once I was paying it off, it was easy to do and I haven’t heard a peep since from the gov’t.

Good luck!

]]> By: Benjamin malloy http://www.debtkid.com/dealing-with-the-irs-how-screwed-am-i/comment-page-1#comment-7970 Benjamin malloy Fri, 14 Mar 2008 12:52:54 +0000 http://www.debtkid.com/dealing-with-the-irs-how-screwed-am-i#comment-7970 I know you have probably heard this.. but please do read. My name is ben and I work for <strong>SPAM DEBT COMPANY</strong>.. we are a debt settlement company that is part of the faith based referrel network. As you have already started a blog about your debt i have a feeling you have done your research.. thats why i know you will understand what i am about to say and how it is different than any other company out there. 1. In our contract we guarantee a settlement of 53 cents on the dollar 2. In our contract we guarantee a credit corections program where your credit is going to be better when you leave our program then when you entered. 3. Unlike the industry standard we only charge 8 percent of the original debt. I CAN HAVE YOU DEBT FREE IN 36 MONTHS !!!!! my name is ben malloy you can email me at Ben Malloy or call me at <strong>1888-I-AM-A-Spammer</strong> I know you have probably heard this.. but please do read.
My name is ben and I work for SPAM DEBT COMPANY.. we are a debt settlement company that is part of the faith based referrel network.
As you have already started a blog about your debt i have a feeling you have done your research.. thats why i know you will understand what i am about to say and how it is different than any other company out there.

1. In our contract we guarantee a settlement of 53 cents on the dollar

2. In our contract we guarantee a credit corections program where your credit is going to be better when you leave our program then when you entered.

3. Unlike the industry standard we only charge 8 percent of the original debt.

I CAN HAVE YOU DEBT FREE IN 36 MONTHS !!!!!

my name is ben malloy you can email me at Ben Malloy or call me at 1888-I-AM-A-Spammer

]]> By: Chief Family Officer http://www.debtkid.com/dealing-with-the-irs-how-screwed-am-i/comment-page-1#comment-7961 Chief Family Officer Fri, 14 Mar 2008 02:05:28 +0000 http://www.debtkid.com/dealing-with-the-irs-how-screwed-am-i#comment-7961 It sounds like you're in a pretty good place, considering. :) Good luck! It sounds like you’re in a pretty good place, considering. :) Good luck!

]]> By: Bad Debt » Blog Archive » Dealing with the IRS: How screwed am I? http://www.debtkid.com/dealing-with-the-irs-how-screwed-am-i/comment-page-1#comment-7952 Bad Debt » Blog Archive » Dealing with the IRS: How screwed am I? Thu, 13 Mar 2008 23:47:27 +0000 http://www.debtkid.com/dealing-with-the-irs-how-screwed-am-i#comment-7952 [...] Read the rest of this great post here [...] [...] Read the rest of this great post here [...]

]]> By: Shel http://www.debtkid.com/dealing-with-the-irs-how-screwed-am-i/comment-page-1#comment-7951 Shel Thu, 13 Mar 2008 23:39:22 +0000 http://www.debtkid.com/dealing-with-the-irs-how-screwed-am-i#comment-7951 Meeting with someone in person is SUCH a good idea. Plus you'll feel a million times better. I imagine just dealing with them over the phone lifted a huge weight so imagine how great you'll feel once the plan is finalized! Keep your chin up and your eye on the prize-you can totally do this! Meeting with someone in person is SUCH a good idea. Plus you’ll feel a million times better. I imagine just dealing with them over the phone lifted a huge weight so imagine how great you’ll feel once the plan is finalized! Keep your chin up and your eye on the prize-you can totally do this!

]]> By: Dedicated http://www.debtkid.com/dealing-with-the-irs-how-screwed-am-i/comment-page-1#comment-7950 Dedicated Thu, 13 Mar 2008 23:11:28 +0000 http://www.debtkid.com/dealing-with-the-irs-how-screwed-am-i#comment-7950 Hey I don't want to rain on you - but I think you should always walk cautiously. It is the only way to not be slammed. Please keep in the back of your mind that the IRS is a BIG entity. The left hand does not always know what the right hand is doing. Even when they tell you they do. There are many things in place at the IRS that flow and you do not want to be caught in this mess. My main concern for you is frozen bank accounts. Not that this will happen, but know that it could. I recommend getting your paperwork in and processed asap. Get that payment agreement and lock it in. Hey I don’t want to rain on you – but I think you should always walk cautiously. It is the only way to not be slammed.

Please keep in the back of your mind that the IRS is a BIG entity. The left hand does not always know what the right hand is doing. Even when they tell you they do. There are many things in place at the IRS that flow and you do not want to be caught in this mess.

My main concern for you is frozen bank accounts.

Not that this will happen, but know that it could.

I recommend getting your paperwork in and processed asap. Get that payment agreement and lock it in.

]]> By: IRS News » Blog Archive » Dealing with the IRS: How screwed am I? http://www.debtkid.com/dealing-with-the-irs-how-screwed-am-i/comment-page-1#comment-7947 IRS News » Blog Archive » Dealing with the IRS: How screwed am I? Thu, 13 Mar 2008 22:34:12 +0000 http://www.debtkid.com/dealing-with-the-irs-how-screwed-am-i#comment-7947 [...] mga [...] [...] mga [...]

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