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Got a great settlement offer but cant afford the earned income tax...


ibreathein
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I recieved a great settlement offer from B of A. on a 26000 cc debt, i am being offered a 6000 settlement to be paid in 6 months. 1 grand a month. i can do this, however, i do not think i can afford to pay the 20000 earned income taxes on top of what i will already be claiming... i know nothing of taxes becuase i have not filed since i have become an exotic dancer 6 years ago but i was going to start filing this coming year. that would put me out of pocket to the irs more then i can pay, and owing to the irs scares me then owing to a credit card company.

i should also add the only reason i am not filing bankrupcy is because i have not filed taxes in the past few years and am afraid of being slammed with some sort of horrid audit. im quite naive to taxes as i said so if anyone thinks this is a possibility for me please let me know, it would be my ideal route to go.

should i take this settlement even though i am worried about the texes i would have to pay on it?

i know i have made some horrible mistakes. i hope you will be kind as i try to start righting them, and getting on the honest path.

also this is my first post i hope to find much help here.

thank you.:)++

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Is that your only verifiable income?

The taxes would be considered capitol gains, I think.

check the tax tables at irs.gov you can even call them, I know someone who had 6000 write off for their CC and it cost like 400.00 in taxes...

and if you can't pay in a lump sum the IRS will take payments

Good Luck

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yes that is my only income and it isnt even verifiable at this point. i do not have a bank account right now and have no assets, im living with my grandmother while i am trying to get my life back on track.

they are passing strict adult buisness laws in ohio right now which will probobly force me to find another line of work, unless i want to work out of state.

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yes that is my only income and it isnt even verifiable at this point. i do not have a bank account right now and have no assets, im living with my grandmother while i am trying to get my life back on track.

they are passing strict adult buisness laws in ohio right now which will probobly force me to find another line of work, unless i want to work out of state.

You could move to Oregon. We're the "gentlemen's club" capitol of the US.

Ohio is too uptight. Larry Flint was from Ohio and was taken to court for his magazine.

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Sjip:

Oregon..problem there is 6 year sol, and wage garnishments. Even though I am a native webfoot, sometimes I am glad to live in TX.

Ibreathein:

As to the IRS. Sooner or later, you are going to have to file. They aren't going to take kindly to you having not filed in...how long was it?????. Sorry, but it's the truth. Since your work is (I assume) an all cash situation, you should be able to do ok though.

As to the current situation........you can drag out payments to the IRS for

something like 3 years if you have to. You file the taxes, pay what you can, (if you can't pay anything, just mail the damned form) and then they will bill you in a couple months for the rest. Pretty simple. When you get the bill, then call, and they will set up payments.

Take the settlement if you can. Beats a judgement.

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