Any former IRS Agent-help ?

[Anonymous]

I am trying to deal w/IRS and State - I was under the assumption that with the amount of tax repair/help ads, that it was possible to negotiate...in my recent conversations with both of them, and this does not appear to be the case.  They both have told me all tax lawyers, etc. (ads on TV) must go through the same offer in compromise, they just take our money and don't do anything.

Do I owe, yes I do...I claimed more exemptions from 2001-2005 in order to be home w/my children while in my custody, not working a 2nd job so my 2 & 5 year old had their Mom at home.

I am a single mother of two, US Citizen, who makes "over" the poverty level and because I have a job, they both told me I can make the money to pay the debt.   Neither would allow me to "see" a person live to discuss, it was just YOU PAY, period. 

The IRS lady told me to sell whatever I could to pay the debt ($100/mo. in interest now); I told her, I would give everything in my house except my kids clothing & beds if it would wipe it out...NOPE...and that wage garnishment would be severe...I had submitted a letter to them explaining WHY I hadn't been able to pay these years...high daycare as many in MN know...payday loans, and an ex-husband who wiped out my bank account...lawyer to get a divorce...

The State was even worse but said the same things...simply NO, we will not stop the interest, we will NOT reduce your debt.  I have worked hard to clean up my credit, I want to convert my rent at some point into a house payment (or have dreamed of it)...the offer in compromise form with the State requires me to get DENIED by (2) lending institutions before they will consider it.  I informed him I spoke to my bank, I have ZERO assets...they will NOT give me a loan, I am NOT about to let (2 institutions pull my credit to ruin it further...he said a lien would wreck it further - dah

I'm sorry BUT is it because I'm a US citizen, truggling mom who works to try to provide for her kids, in jeopardy of losing her rental unit, car, etc. - I just don't get it, I'm not a celebrity or a politian, and mean no disrespect to anyone, but is this NORMAL...that's all I want to know.

I've spoken w/a lawyer who said I might be screwed because I'm a wage earner...but he negotiates for people, and of course would charge...I am only looking for your opinion on whether this is normal or not...the Government is bailing out MANY greedy people who knew exactly what they were doing when they upgraded to a bigger/better house (I know some did not know what they were getting into); but they simply do NOT care about the citizens?

I'm not trying to get out of this completely, but WOULD like to settle on perhaps 80% if I can get the money...I know I owe, and if I had to do it again I'd chose my kids again, but this does not seem right (yes, I know life isn't fair, but this is assinine)!

Thanks for any help!

[fishbjc]

Hi Beach!  First let me sympathize with your plight.  Our Government doesn't seem to 'want' to help the middle-class people.  Two years ago I made an error on the form our CPA provides us to help with our taxes.  I double-listed our mortgage interest.  Of course, last year the IRS caught it and now with interest I owe $4000.

Our CPA had us fill out paperwork to apply for a payment plan.  According to her, just about everyone is approved unless they apply for some ridiculous low amount of $25 per month on our income.

We pay $100 per month.  Since we get back a decent tax return, we will forfeit that entire return this year.  Interest does accrue.  The IRS lady gave you incorrect information and should be reported for suggesting you sell your belongings...what an a$$.  I doubt you can get a settlement from the IRS, but they WILL work out a payment plan with you and naturally, snag your returns.

Message Edited by fishbjc on 12-15-2007 05:51 AM

[Anonymous]

Hey thanks!  Yeah, she made me go on a payment plan of $155/mo...I told her I can't afford that plus paying the State...they've accrued $2500 in interest (daily too mind you)...she wouldn't let me off the phone until I agreed to it...I made some small winded comment that I'll end up on the street, because 3 yeas ago I got into a bad car loan (23.25% PER DAY), and I NEED to get to work....the whole thing just sleighs me...

I have corrected things to where I claim the right amount, found a place I can work only the weeks the kids aren't home, but it will take me 10 years to get this crud corrected...since they won't work with me...I have to pay the "assessed" amount for the first 5 years, and according to her, then I'm stuck paying all the interest that has accrued...as my children get older they have more things - I mean it's like ok how do your kids get to feel like they aren't the poorest?!!

I hate to say it but I wish the government could get it right and just do a flat tax - or at least LISTEN to the reasons behind why some people get behind - Owing $18k in taxes total (by the time I'm done), welfare almost sounds better, but then again I guess they believe I won't quit my job, etc.  (I have that American Dream that my kids deserve!)

Thanks again!

[fishbjc]

Instead of adding a p/t job, have you ever considered eBay?  When the weather is warm I go to garage sales, estate sales etc to pick up goodies.  I clean things up and sell them.  Even if you earn $100 per month, it will really help you out.  For example:  Old Collectible Longaberger Basket, I paid $25 and sold for almost $1,000!  Other baskets I picked up for a couple of dollars and sold them for about $20-$30 each.  Study collectible jewelry books, records, crystal.

What happened to the IRS being 'people friendly' now?  NOT!

[Anonymous]

Interesting you say that, my PT is at a consignment shop and there is a lady who comes in to get items to put on eBay...I just didn't realize people buy that - $1000 for the basket is incredible!

It's funny you say that about the "people friendly" - my S.O. kept saying it too until my conversations yesterday with them, we figure it's only because we are NOT celebs or Dr's or politicians...thought they were to NOT put people on the street...wrong

Thanks for the tip!

[Anonymous]

Hi beach, the IRS works like a creditor in some ways. Call them back, you will get another person to talk to. IF they give you the same crap ask to speak to a superviser!!!!  My son had everything settled with 1 person & when he called back,he got another. This second person was NASTY & refused to go along whith what the first said. My son asked to speak to a super & was told NO!!! Keep in mind that all calls are recorded.  He called again & got the 3rd person....she got it all corrected and ALSO received a call from a super. The super told him he was set and that the 2nd person that was nasty & refused to refer him to her would NOT be allowed to answer any more calls (fired)!!!

 So call back & see if payment arrangments can be made.....as always get everything in writting!!! they will  send all info. by FAX if you ask.

Never miss a payment....put it on a CC if you have too.

With the state I don't know...if you can start making payments (even if they say no) Im guessing that if they try to put

 AS too having your CR pulled for a mortgage  how many pulled within time limit only counts as 1 pull!

[Anonymous]

If you are worried about your credit score, do whatever is necessary to avoid having a tax lien recorded and put on your credit report!  I made the mistake of refusing to pay an installment agreement on state income tax (because it was not feasible for me to pay the entire amount in 12 months) and my score fell to subprime and apparently died there when the state tax lien was reported.  The state released the lien when I started paying by installment, but my score has only gone up 10 points.  Also, the time period for the CRA to remove the item starts as of the date the lien is reported as released.  According to ScoreWatch, people with liens are rare and much maligned, you don't want to be one of us!

Recording a lien appears to be a discretionary action.  The IRS did not record a lien on my obligation to them and the state tax lien was not recorded until almost a year after I refused to pay. 

[Anonymous]

Thanks everyone!  I had thought I owed the IRS $7121 (amt of lien) so if I pd that I was done...wrong...the 2nd guy told me I had to pay all the interest on those years too...

The state, forget that, they are most unwilling, and the IRS as I mentioned won't negotiate w/a regular person...and they both tell me nobody can get it down because I earn wages...do others really believe this or should I really hire someone or just go for the OIC??

THANKS!

[Anonymous]

Also, you have to pay interest during the period that you are making the payments as well.

Can you afford an attorney?  An attorney has limited negotiating ability with the IRS.  Basically, they ensure that the IRS follows federal regulations regarding offers in compromise.  Their negotiating skills only come into play if you are not able to pay the obligation in full (within 5 or 10 years). 

Go on the IRS website and read the Form 656 instructions.  If you think you will have difficultly presenting your financial circumstances in the worst possible light (you have to show the tax is not collectible) -- then you should probably consider seeking out the assistance of a professional.

[Anonymous]

Beach,

I have not read all the comments, but let me just sympathize. I went through this IRS ringer for about 18 months.

My first advise to you is get a REAL accountant.

I will be back. Keep your head up. You will get through it. I just dont have too much time now. Others (many) have been there, and it looks desperate. It is, but you will make it out the other side.

TBR