I owe the IRS about 00 from when I got audited one year. I have 00 in savings and 00 in checking and I’m in fear that they will take it one day. I’ve called the IRS and put a hold on my debt because I’m not working right now. I’m currently collecting unemployment and that money in the bank is all I have.
theyfiled with the IRS for a loss for the remaining balance
Im filing chaper 13, and i have to show 3 years of tax returns. 2 of them are back taxes that i am just now going to be dealing with and then my 2007 return.
my lawyer says he needs copies of all 3 of the returns which i have. does he notify the irs that i am filing bankruptcy and turn in my tax copies?
it seems redundent if im going to be mailing them in and paying them myself.
plus i dont want to go to kinkos and copy 10 million pages of tax stuff…..
ps
i should also add that im going to be asking for the payment plan would it be best to call or just fill out the form for that? would the payment plan include all 3 of my taxe years or do i need to file a seperate payment plan for each one?
My brother is currently under an installments plan with the IRS to pay about 4,000 dollars of money due from 2004 because he took a second job and his employer was not withholding enough from his earnings. This year he may receive a refund of about 5,000 but he’s afraid the IRS will keep this money to settle the debt even though he is already on a payment plan. He is thinking of using this money to do repairs on his home.
I owe some back taxes to the IRS and am enrolled in a repayment plan. The stimulus check will be more than enough to settle this debt. I didn’t get direct deposit and my SSN ends in 90 so I’ll get my check in July sometime. My question is when will the stimulus check get applied to my bill?
I am thinking about filing Bankruptcy but I am a nanny and get paid under the table. I am worried that by filing the IRS will look at my case and notice I don’t pay taxes and it will end up costing me. Can I file without anyone noticing I don’t pay taxes??
What is the best way to settle on tax debt? As in settlements for paying less then what you owe.
My parents made bad decisions young in there life and had a HIGH credit debt, to get out of it my mother worked a full time job and a part time & my father for more than 8 years had two full time jobs just so they could clear all that debt. Within the past year they got it down tremendously and for the first time in years my parents oonly have to have one full time job. But now because they were making more money the IRS came in and wants 30k of it. They just got a letter saying th IRS is going to start taking money from there bank accounts.
If any one has any advice please let me know, it is greatly appreciated!
(please no smart ass remarks like: pay your debt or pointing out what got them in this situation.)
For Credit Card debt settlement, what happens if one spouse is insolvent, but the other isnt?
I am trying to settle my cards, and know about the insolvency clause. However, if my spouse and I file joint, how would I alone be able to prove insolvency by IRS standards?
I settled my debts with a few creditors in 2005 and 2006 tax years but was unaware I had to report the amount I saved as miscellaneous income. I moved a lot since then so I just received a bill for my tax debt from the IRS. Can I just re-file my returns for those years to include the settlements I left out?
I settled debt in 2009 dec, but didnt receive 1099-C… what should i do?
can someone help me? should I send letter to the credit card company? or should I check with the irs? or will I just get it as 2009 income and file next year?
the debt is not showing on my report anymore. i didnt see any settlement info on the report either.
i did settle with the original creditor.
My husband fell 6 months behind on a credet card bill. The account was turned over to a collection agency in Texas.After repeated phone calls to both my husband and his employer. My husband called the CA and asked them to stop contacting third parties. He tried to make arrangements to pay the debt. He was not able to come up with the sum that they wanted so the calls continued. They called us numerous times. Sometimes 10 or more times in one hour. They continued to call his employer even when the employer asked them to stop calling. They called our neighbor, parents, and siblings. I contacted them and made arrangements to pay the bill in monthly enstallments. Two payments have been made as agreed. We have not missed a payment. Yesterday I was contacted by them stating that if I couldn’t settle the debt that day they would send a 1099C form to the IRS. Claiming that my unpaid debt was considered nonwage income even though I was paying on it. they also called a third party this same da
We still are not sure how they got our neighbors address. We hardly ever even talk to him. I don’t even know his last name. All that we can figure is that they looked up our address and then did a search on our neighbors address to get his contact information.
What really gets me is that they are continuing the harrassment even though we are paying on the debt. I could see if we had missed payments or something but we haven’t.
The 1099 C form doesn’t even apply to my debt. They were not offering to eliminate the debt. The lady who I spoke to on the phone tried telling me that if I didn’t pay the debt that day she would file the form. When I spoke to the manager and asked him about the form he told me that it was used if part of the debt was written off and did not apply to a debt that I was paying. He is looking into the matter to find out why she would tell me this. It felt to me that she was just trying to bully me into paying it that day.
We have the payment details in writting and have made payments as agreed. We are sending a certified letter tommorow to stop contacting third parties as they are not doing so with any intentions of finding out contact information about us. They already have our information.
We are trying to negociate 50,000 credit card down to 25,000. Is it true that you need to pay taxes on the amount settled to the IRS. See post below:
"Do you have the settlement amount in full? When you try to negotiate settlements, often times you need to have enough
funds to make large payments. Additionally, be aware that any "forgiven" debt by the OC is considered taxable income by the IRS"
I have a tax debt of about 10k. I can’t pay the amount in full and if I make payments I will end up paying a lot more because of interest every month. What can I do to settle with the IRS?
My boyfriend settled a debt with a credit card in 2008… now we are getting something from the IRS that says we owe money. We didn’t fill out any forms, but he didn’t have any income at the time… Do we need to see a professional about this? What forms do we need?
My husband and I were in a debt settlement program. I am wondering if we’ll have to claim this on our taxes? I know we’ll have to claim it, but will we have to pay? This is what our debt program states on their website and what we were told by them:
Creditors are required to report canceled debts exceeding 0 to the IRS and you are supposed to report the same as income on your annual tax return. However, the IRS permits you to write off any “income” from canceled debts up to the amount by which you were “Insolvent” at the time. Therefore, unless you have a positive net worth, then you ordinarily will not be obligated to pay taxes on the forgiven amounts. Additionally, if you do not qualify as insolvent non principal amounts such as fees accumulated on the account may be deducted from the amount reported.
We’ve never had to pay but always received money back. Will this deduct from the money we should receive?
I’m an unemployed teacher and have just lost my car (my only asset) and am representing myself in my bankruptcy. My combined debts (assuming I’ll still owe about ,000 on my car once it sells at an auction) is approximately ,000. I do not have a savings and no longer have retirement accounts because I had to cash them out to cover living expenses. Twelve years ago I had to file bankruptcy and am concerned about how that will look to the judge. I worked to earn my college degree since then and was doing well when suddenly I found myself without a job. Any thoughts on that? My debts back then were fully discharged, and I’m hoping to file a Chapter 7 for another discharge of my debts. Here are some of my questions, any input would be appreciated:
1) Is there any kind of assistance available for people who cannot afford the filing fee?
2) Once I file, how long can I expect for the court date?
3) Does the online bankruptcy class that is required cost anything?
4) Can my 0 debt to the IRS (back taxes) be included or just the interest and penalties?
5) Any suggestions for someone doing this without an attorney?
I’ve done my research and am actively seeking answers to my questions, but there are some very informed and helpful people on this site, so for peace of mind I really welcome your input.
Thank you!
I’ve seen commercials on tv from companies who can help people who owe the IRS thousands, settle for pennies on the dollar. I heard this can do damage to your credit rating. Is this true? I don’t owe them any money. I was just curious.
If you settle a credit card debt for less than the balance, they send a 1099 to IRS for the difference. Could not someone do the same thing with a person who borrowed money and did not pay it back? Does IRS care?
the question was could I 1099 someone who defaulted on a debt .. not so much could I get a deduction on it. Thank you for your answer though.
claiming dependents in new york city, that do not live in your house hold for so long, can it catch up to you. and is it possible that people file for bankruptcy due to oweing the irs.
IRS levied bank accounts and we are filing bankruptcy but I was thinking there was some small petition that could be initially filed to get the accounts unfrozen and then proceed with the full bankruptcy
I am a business owner and I am having an issue with getting paid for my services that have been completed. My husband was a business owner (both of us in construction) and recently had to shut his company down to to an issue with the IRS. I have done work for one of the same companies that he has in the past. His company was issued a levy and the levy was also send to the General Contractor that I am doing the work for. The General Contractor is now holding my funds and refusing to pay until they hear from the IRS. Meanwhile there is no paperwork filed against my company for a lien or a levy by the IRS. This GC is just not paying me. I have hired a CPA to help us and he flat out told us that what this General Contractor is doing to us is ILLEGAL!! Because of this we have gone bankrupt. We are losing our house, our cars and have had to seek counseling becuse of the amount of stress that this is putting on our family. We do have a 20month old daughter and in less than a month we will have no place to live, no vechicles and be completely broke. I am in a situation where the only thing I can do is hire legal counsil to get our money. We are owed over 0,000 and we don’t think we will see a dime unless we get legal counsil. Can I sue them for withholding funds? Can I sue them for emotion distress? How much can I sue them for? I need some advice!! Please help me!!!
The IRS wants to tax me on 4000 of a 10000 debt I settled for 6000 in 2004. If so, how about I add up my monthly car payments and subtract that from my earned income.
I am almost exactly 0,000.00 dollars in debt and I am single with one income and earn around ,200.00 per month.
The highest paying job I had after 5 years on college has been at .00 an hour where I worked for two years before getting laid off. Ever since, I have not been able to get a really good paying job with my degree.
Here are my debts:
,000.000 (and rising) to the IRS. After I bought my home, the IRS stopped working with me and everything became all threats with them answering every question with "I see you have a home, we don’t have to work with you-we can simply put the tax lien against your home) which they did.
I’m desperate to get from under this debt and I have heard stories about people making ridiculous settlement offers to the IRS and paying pennies on the dollar but the only settlement they will offer me is around ,900.00 (a 0 dollar reduction) IF I pay right away.
And this amount is originally ,000.00 with the rest being penalties and fees.
I owe ,000.00 on my home
I owe ,000.00 in medical bills
I owe ,000.00 in credit card bills
i owe ,000.00 in miscellaneous bills
I owe the utility company ,500.00
I owe Sallie mae (I had my student loans consolidated) ,000.00.
I can’t pay on any of them right now besides my home and my payment on that is 2.00 per month. I also live away from my home out of state and I pay 0.00 dollars for an efficiency.
Should I file bankruptcy? Which chapter should I file and how do you think it will help me?
PS-
I forgot to mention I just had a judgement filed against me by the lawyers for my HOA for 1,700.00 dollars and NOooooooooo I DO NOT want to sell my home. It will be lightyears before I’m able to buy another one.
The first answer given is why I want only "knowlegeable" folks to answer because they take the home if you file Ch. 7 NOT Ch. 13.
I just found out I owe 00 in taxes for last year, due to my income from my [now defunct] partnership being listed as a "Guaranteed Payment" instead of a passive, capital draw (loan from the company). I disagree, but getting the investor/partner to amend the K1 in my favor is unlikely, as poor records were kept and this K1 favors him as far as tax deductions go. And I’m probably not going to be able to fight him.
I’ve heard the IRS works with people in these cases. I’m 24, unemployed, don’t own a house, have ,000 in credit card debt. I’ve got about ,000 cash in hand, but I’m moving next month and half of it’ll be gone within 6 weeks. Do you think the IRS will settle with me? And how much, realistically, can I expect the IRS to knock off of that amount? How do I go about negotiating a settlement with the IRS after my return is filed so I don’t get penalized. Also, H&R Block wants 8 to do my taxes? Is this excessive? Jackson Hewitt told me they couldn’t do it, period. Thanks!
I have at least ,000 in hospital bills, i owe 2 banks total about ,000, 2 apartment leases ,000, IRS 3,500, Credit Card 0, a car REPO about ,500 and i am only 24 years old. What should i do? I’m a full-time college student and work full-time and i can’t get a second job. PLEASE HELP!!!!
I was thinking about paying one of those credit companies 200.00 to clean up my credit or should i just file bankruptcy?
I was thinking of signing up with a debt settlement company but I have heard the debt settlement companies not what they seem. They promise to settle your credit card and unsecured debt for half or less than what you owe. I have heard what they don’t tell you is that you usually get sued, get your wages garnished, and that the debt settlement companies over report what they actually save you while charging you a huge fee. In addition, I have heard that your savings are reported to the IRS as income and that your credit report is trashed. Supposedly their seemingly caring sales people are paid high commissions. Apparently you can negotiate with your creditors and be just as successful while saving the thousands of dollars these companies charge you. What I want to know is if all that is really true about these companies and can I actually negotiate with my creditors myself and save thousands in fees. I need the scoop from someone that is honest and knows the truth about these companies
I understand that if settling — I will receive a 1099c from the IRS to pay 40% of the difference if I settle but is there any other advantage in respect to my credit reporting if I pay in full instead? Will it come off my report sooner or do Lenders look more favorably on this? Does it make a difference at all?
I keep hearing about people settling debts and the comments regarding state if they settle, they will have to claim the difference to the IRS….my account was turned over to a collection agency, I owed a little over 0.00..the collection agency sent me a letter stating they were willing to settle for I think it was somewhere around 0.00, I paid the 0.00 (this happened about 3 years ago)..should I have reported it to the IRS??
is there like a statute of limitations – meaning after X amount of years there is nothing the IRS can do if this error is not caught?
I can’t fix my typo!..if the error is caught in 2010, can the IRS still fine me?
I pay all my taxes every year. Always have. But some people earned more money than they could afford and ran up huge tax bills which they now say they cannot pay. The government and the IRS apparently have programs to reduce the amount of taxes there people owe. HOW IS THAT FAIR TO THE REST OF US?!?!?!?
Hey all you "life is not fair" folks: Do you feel the same way about people who bought houses they couldn’t afford and now want to change their mortgages?
some credit card companies if you settle a debt with them for less than the amount owed the IRS will tax you on the rest as income
while tax payers have bailed out banks and now they are making huge profits