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Anyone with IRS settlement experience?


Tammy
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My husband has several tax liens (federal and state) for employement taxes (some are 8 years old and some are just 4 years old) and we are kind of in the position to make a settlement offer. Does anyone here have any advice? Also, what percentage shoudl we offer? IRS has not contacted us in years. But this is on our credit reports.

Thanks!

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He filed bk on a lot of business accounts, loans, credit cards, etc. He also filed on personal income tax - several years. Accourding to his bk lawyer, if the IRS approves, they will let you include personal income tax on your bk and release you from it. However, you cannot include sales tax, or employee withholding taxes because this money was never yours. It was your employees that you were holding to send off to the IRS. But I know you can settle with them. The IRS actually put a lien on any property that we own - which is why we can't get a home loan until we settle with the IRS. I have also been told you can't get a auto loan if you have liens (tax or otherwise) but we just got a new Envoy so either they didn't pull the credit report with the liens or they overlooked it.

Wow. $150,000 is a lot. Is it all employee withholding taxes or income tax too? We filed on the income tax but couldn't on the withholding or sales taxes.

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If it sounds too good to be true, then it probably is not true...

I have been so tempted to call up Ronnie Deutsch.

I know that a 20 dollar settlement is full of [EXPLETIVE DELETED].

But I have penalties and interest racking up from previous tax problems and I am so close to having a pristine credit report. My biggest fear is that some day I will get an IRS tax lien before I have a chance to pay everything off.

Has anyone ever got professional help to get a settlement?

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I think as long as you make your payments, they won't file a lien. Are you in the position to make a settlement offer? My father has dealt with the IRS before and he told me to go in with a check in hand of what I could offer and tell them that I borrowed it from family and this is all I could come up with.

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A friend of mine used to work for Ronnie Lynn Deutch. Yes, they can help you, but only with fairly hefty fees (beginning at $500 on up, depending on the type of case and the amount). The advantage they have over a "civilian" attempting to settle their case is the fact that they are tax attorneys and know all of the laws and little insider secrets to getting a low tax settlement. They basically take the headache away from you.

When Ronnie says she has settled tax cases for $20, she's telling the truth, but the $20 is in reference to what the IRS was paid, not her fee! Also, she doesn't personally handle cases anymore, they are all handed off to her staff of attorneys. My friend was a CSR there and did handle cases wherein people owed $25,000 and paid $250 (in addition to the firm's fees).

It doesn't hurt to call. You are under no obligation to hire them and you get a free consultation. You might even find out you're better off doing it on your own!

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Tammy ... Yikes! This tax problem is not a simple Individual Income Tax problem. I would strongly discourage you from going to a bulk Offer In Compromise processor ... You need a lawyer with experience in Federal and State withholding tax laws.

Here is some reading for all of you ... Hope it helps.

http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&threadid=52193

You should be able to calculate a reasonable number for an Offer in Compromise if you check out all of the links in the thread. I would suggest you prepare all the required documents yourself and then go to a lawyer ... The preparation will save you a bundle. If you have completed all of the tax returns, you will need to fill out the following forms.

Offer in Compromise (OIC)

http://www.irs.gov/pub/irs-fill/f656.pdf

Collection Information Statement (Financial Statement)

http://www.irs.gov/pub/irs-fill/f433a.pdf

According to the OIC form you can include Employee Withholding taxes in an offer ... Please read Page 7, Item 5 on the OIC form.

Good luck!

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My tax story.

I never owed as much as people metioned in this thread, but.....

I owed income tax from 2000, about $3000. I made a promise to pay $100 per month and the IRS agreed. I had some bad times that year and never sent them even 1 payment. (No, I'm not bragging). My 2001 return I owed another $2600 (now total over $5,600) and asked again for a payment plan. I was sure they would say no! I never sent the payments from the year before and there is also a clause that say's you can't make payments if you did so in the last 3 years. But, they agreed to the payment plan again. I sent them $200 a month, without fail. 2003, I got my first return since sometime in the 80's. They of course kept it to apply to my balance. They kept my child tax credit this past July. In November, I had back surgery and am still out of work. I called the IRS and asked if I could stop making payments until Feb. 2004. They said yes. I was floored by how nice and accomadating they have been. The woman I talked to, even wish me a speedy recovery and told me about how she had the same surgey herself. I always hear such horror stories about them, but they have been nothing but nice to me.

My balance with them now is only $460 and will be paid when I file this years return. Thank God!

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