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I owe the IRS for 4 yrs. What do I do?

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Anonymous
Not applicable

I owe the IRS for 4 yrs. What do I do?

I have no w2 and a few 1099s but nothing to show them. I have been working in construction since Katrina in New Orleans. I was a business consultant before and didn't do my taxes. I am not making excuses. I contacted a co. that claims they will make it all go away for $6,000 and have since been told to just contact the IRS myself and it won't be that bad. A few thousand maybe. Especially considering I have nothing to show for the last few yrs since my divorce and the only asset I have is a truck worth about $1500 if you can even call it that. I plan to get remarried but think it a good idea to clear this up first. Thanks in advance. Shawn
Message 1 of 7
6 REPLIES 6
Anonymous
Not applicable

Re: I owe the IRS for 4 yrs. What do I do?

Download the forms and fill them out-
 
See where you are at-
Being self employed over those few years- the taxes are likly fairly small (if you kept records)
 
IRS can come aftr you for years- but will only refund upto 3 years old..
Message 2 of 7
Anonymous
Not applicable

Re: I owe the IRS for 4 yrs. What do I do?

Hi...The best thing to do is contact the IRS and handle it yourself. No one can make it go away and you might owe the IRS less than you would pay some company. I owed the IRS before because the tax preparer submitted the wrong info. I caught the mistake months later, and submitted the correct info and started a payment plan with them. They will work with you and are not as bad as some people make them out to be. They do offer payment plans, and are you a victim of hurricane Katrina? They might even have a special program for Katrina victims being that a lot of people paperwork have been destroyed. You definitely want to clear this up so you can start your new life with a clean slate...
Message 3 of 7
demi
Established Contributor

Re: I owe the IRS for 4 yrs. What do I do?

I would contact the IRS and start working on it.  I just paid off taxes from 2004...totally ignored (for what I thought was good reason, back surgery, not enough withheld from disability, so had a huge tax bill, moved when taxes were due and never found all my medical stuff).  When I went to purchase a house, found out FHA would not allow -- probably still could have gotten away with it because I had never filed anything so I wasn't "outstanding"---even got a refund last year.  Anyway, with the house, I paid up, over 3000 in taxes, and was hit with 2000 late and deliquent fees, paid all and protested some of the late fees.  Just got a letter today that they are refunding most of the late fines...since this was the first time I was ever late.  They were very nice, easy to work with.  The best part...I sleep well not worrying, and when I hear those late night commercials about taxe problems...I don't freeze up anymore.  They will work out payment plans with you.  I think the important thing is to be proactive instead of waiting for them to catch up. 

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Message 4 of 7
rodney0126
Established Member

Re: I owe the IRS for 4 yrs. What do I do?

I would HIGHLY advise against using a company that make stupid claims. If you got the money....you must pay and they (the IRS) will make you pay. As far as an abatements....I talked to the guy in charge of them personally. It only effects the penalty and the interest on the penalty, NOT what is owed. And it's only for one year. You can only do one year at a time and even then....you have to provide proof as to why you didn't pay on time. Such as a severe, severe illness, drug and alcohol addiction, and one or two other excuses are acceptable. They DO require proof and not just your word.

Here's how it works....I'd do your taxes and see how much you owe. this will be BEFORE the penalties and interest. If the amount + penalties and interest (total amount owed) is less than $25,000 then they will work with you on the monthly payments. If it's over that...then they will stick it too you on how much you WILL pay each month. The bottom line is....if you haven't been in the hospital for a very long time or if you can't prove a history of alcohol and drug addiction, suicidal stuff, ect...you won't get an abatement. If you have the ability to pay the IRS back what you owe them...you will have to pay. All of it. NO matter what these scam companies tell you....you can do it yourself and save yourself $6,000. If it's under $25,000 owed, then I even think you can go directly through the computer prompts on the telephone and set up a payment arrangement.

MY dealing with a scam company was....the money the "salesman" (who you spoke to the first time) tells you it takes to clear up your case...well that amount ($6,000) is just to get them started, not to complete the case. They billed me for sending me a welcome package!!!!!! every time the case worker calls you...your billed, even if they call to see how you are doing! every little piece of paper they send you, no matter how meaningless and redundant, is billed to you. and it all comes off the retainer of (in your case) $6,000. They will nickel and dime you to death and then....when it's close to contacting the IRS, they need more money. Trust me, those companies are just a waste of money. One would think as long as these so-called experts have been doing this and bragging about the length of time they've been doing it...that they could give you a pretty good accurate dollar amount to do your case from start to finish.

I owed $38,000 and didn't even file for 7 years. I paid like...$2,400 before I caught on to the company's scam and then I got on line and found out that most, if not all, are just a complete scam and basically just "take" your money for something you can do yourself. I set up the payments myself through the IRS. I could give you more hints and insights if you like before you actually talk to a live person at the IRS. It helps to know some things before calling.

Message Edited by rodney0126 on 08-13-2008 05:55 PM
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Message 5 of 7
MattH
Senior Contributor

Re: I owe the IRS for 4 yrs. What do I do?

If you end up owing the IRS a substantial amount, you will need to know about what the IRS calls "Collection Financial Standards" as described in the URL below. Basically, to determine what you MUST pay they start with your current income, then subtract what they deem essential living costs and every cent above that is theirs. Prepare to be stunned by how little they think is an acceptable standard of living. But don't delay calling them, because until you do bite the bullet interest and penalties will keep adding up and unlike most debts you ultimately cannot escape IRS debts unless you meet an EXTREMELY strict definition of hardship.

http://www.irs.gov/individuals/article/0,,id=96543,00.html
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Message 6 of 7
Anonymous
Not applicable

Re: I owe the IRS for 4 yrs. What do I do?

Go to your local IRS office and talk to them.  They will help you for free.  Take whatever paper work you can find.  They will probably understand "Katrina". If you owe they will set up a payment plan you can handle.  DO NOT BE AFRAID. 
I filed BK and everyone said I could not list IRS.  I did and they accepted because they hadn't filed liens yet.
 
 


Message Edited by casinoannie97 on 08-16-2008 05:19 AM
Message 7 of 7
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