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
Is a creditor required to send me notification or a legal form showing the income (like an employer is required to send a W-2)?
I previously settled some debts, received no such form, and the IRS came calling for the back taxes a couple years later. I have other debts that, after inability to pay, consideration of credit report limits, and statute of limitations for claim suit, I have decided not to pay. How will I know when this is considered income by the IRS?
Last year the company I worked for went bankrupt. We were given a check for our 401K and told to invest it in an IRA within 60 days to avoid paying income tax, which I did. When I did my 1040 I noticed the IRS took 8 as income tax. I phoned the IRS but no luck. How can I get my 8 back from the IRS on a bankrupt 401K?
I have the software to do the bankruptcy myself but I would feel better with some representation.I can’t even get my taxes done because I can’t afford it. The IRS people are just so rude and could care less about my situation I am soooo lost. Help anyone? Any advise is worth listening to at this point. thanks.
I am mulling an offer from a debt collector for Citibank visa on my wifes account. The account was already charged off by citibank and now in the hands of the collector. The offer to settle is very good but its almost 3000 dollars off and i am afraid the reduced debt will be taxed like crazy by IRS. I really dont have to settle because my wife is on Social Security disability and cannot be garnised as per law. Does anyone know what the tax hit would be? Its about 3k off the original debt.
my wife has a few credit cards in which she has about 6k in debt. then she took out her 401k in order to pay some off(which brought it down to 6k) and so we both got nothing back from our taxes and now we owe the irs 4k. then we got a car payment we are paying for which is another 6k. now we are trying to pay it off but its a lot and i need some ideas on how to pay this debt without bankruptcy or using a debt settlement company? i have debt too but its like 2k so i’m worried about hers first. i’m at my whits end and need some help please!
the car loan we have in not exactly a lein. i was sold a car on a bogus payment plan and we took out a loan to pay off mine while she used her car as colateral. so we are still paying this loan.
I owe 00 to the IRS from a 2005 return. I did an Offer in Compromise for this debt to find out that they will take my tax return for the next 5 years until it is paid in full. What is the point in settling a debt if they are going to take the money anyway? I need my return to keep afloat. So if I file Chapter 7 now and include this debt which many lawyers told me that I can – then after the Chapter 7 is discharged I can file my return and get my refund right? If I am going to file might as well do it now and and get an extension to the April 15th deadline. Let me know.
I have a friend who is considering filing bankruptcy and wants to know if IRS debts will be included. How does this work.
I "settled" with several credit companies for over ,000 in debt. The IRS considers the settlement amount as earned income unless the tax payer was "insolvent" at the time of the settlement. My home has minimal equity but I don’t know how to determine the value the IRS will use in calculating my debt to income ratio. It could make a big difference in my tax liability for the past year but was better than filing for bankruptcy or losing my home. This question even seems to stump tax advisors. Any wisdom out there in Yahoo land would be appreciated.
I would like to work for a firm that helps clients settle claims with the IRS for pennies to the dollar. Where would I find these companies and what position would I apply for?
Please, if you do not know, do not respond.
We owned a small flower shop. that made no money in 2003. We closed shop but didn’t file bankruptcy. Now the IRS is at our front door wanting payment in full.
We don’t have the money, what should we do?
We just settled with BOA and Chase at 50 percent instead of going chapter 13. Citibank has not settled. If we let our 3 cards totalling 12,000 go to collections will they settle for less?
Yes, I know we need to file any settlements as income with the irs on 1099 forms.
Does the IRS charge tax on each settlement over 600 but not on anything under 600 or on a cumulative amount of all the debt you settle in a year?
I have completed all my back tax returns but have not yet filed them (2005-2008) and have come up with a tax owed of around ,000 which will surely be at least -,000 by the time penalty and interest are added in. My 2004 returns shows me owing ,000 and the IRS has already started the levy process against my personal income last week but made an error on the form so I have dodged a bullet until they get it corrected.
I spoke with the IRS this morning and told them how much my gross and taxes were for the 4 years I haven’t filed and they have asked me to fill out a collection information statement form 433F and have given me until Monday to call them back and give them the info on the phone.
Due to some huge unpaid medical bills, my debts outweigh my assets by at least 3 to 1 (assets ,000, debts including ,000 tax are around 0,000).
I have around ,000 cash saved, and ,000 equity in my house but cant find a lender because my credit is terrible.
Any suggestions? Will the IRS be able to give me an installment plan or could I opt for an offer in compromise? Or is bankruptcy an alternative?
I have never been in such a poor financial condition in my life.
Thanks.
Can I possibly do and offer in compromise? I realize now that federal taxes can not be discharged in a bankruptcy. Can the IRS do an installment agreement for ,000 or is the maximum ,000?
Thanks for all the advice but please get off your pulpits. Facts only please, no criticism. I know the situation I am in and how i got here. You dont need to remind me and/or accuse me. I just came here for answers. So lets stick to the answers people.
Any answers about the possibility of Offer In Compromise?
Can I do an installment contract for ,000 if I can pay it within 3 years?
AFTER I FILE ALL RETURNS DUE AND OWE ,000, CAN I GET AN INSTALLMENT AGREEMENT? IS IT POSSIBLE?
Could they take your money out of your bank account when you have debts and collection agency always looking for you? I am planning on filing bankruptcy but I will need to have money for other things like attorney and money to live. Does anybody of you know if after a while those debts if you don’t file bankruptcy they go into your w4 ?
Then you’ll find yourself owing money to the IRS through the franchise tax board. I saw it in a movie and is worrying me. I thought at the very least they can take what you own, like cars. houses, or anything in your propriety , but I never heard that, IRS or whoever, can take actually money out of your account…
I heard they can take money out of your paycheck.Yes,even giving you bench warrants like they did to me, when is court fines or law-legated debts.
But actually withdrew money from your account I never heard of it…please if you know anything about it let me know otherwise I have to be careful to put my rescue money in a bank account
It was reported that 30 ministers have held a political rally and issued political comments during this campaign in violation of Federal Law. Once a Church involves itself in the political process it loses it’s tax exempt status. I think IRS is going to come down on these pseudo-ministries and audit them and collect the taxes owed on the monies they received. How many congregations will declare bankruptcy ?
can someone walk me through the steps of this new bankruptcy law. Also does anyone know of any alternatives? Im in real bad shape though. CC, med bills, IRS, State, Private school tuition, two vehicle payments, …. I went from making 6 figures to the medium 5 figures. Not on the street poor but definately cant maintain this lifestyle anymore.
can they really do it or should i just deal with a payment plan with the irs?
The TV ads that make it seem like people are settling their tax debt for pennies on the dollar, and saving their house or business. They must be forced to sell off all assets first and pay IRS — right? Seems like a scam.
I am excellent at defending myself in court. I need to file bankruptcy to clear off a couple of 20-year old student loans and some credit card debt if I or my fiancee ever want to get any income tax refunded or receive any stimulus money. Without bankruptcy, we’ll never receive a dime back from the government and will also never get the debt paid off, at our advanced ages. Are there forms available anywhere which I can use to file with? I live in Texas.
FYI, when one does not pay a guaranteed student loan, the balance is taken out of every refund the federal government issues to you, i.e. your income tax returns, your spouses income tax returns, and any stimulus payments. This has been happening to me for the past few years. Instead of last year’s stimulus check, I received a notice from the IRS saying mine had been sent to a loan company. In Texas, once a student loan is more than…I’d have to look it up again, say 5 or 10 years, it is considered an undue hardship and does qualify for bankruptcy. Mine is 20+ years old.
My sister has been dealing with the IRS for a while and she was recently told by a friend of hers that she could file Chapter 13 Bankruptcy to get all her bills organized and establish a payment that would help her meet her obligations and keep her house. My understanding is that once you file Bankruptcy you can not do it again for 10 years. I could be wrong though -
I owe the IRS 5K+ in tax. I can't pay the amount in full and If I make payments it will take me forever to pay it off because of interests every month. What can I do to settle with the IRS? any optios, advice?
Side Note:
What happens if you don't pay the IRS?
Good answers.
This just happened this year.
How long it takes the IRS to lien the bank accout or garnish wages?
I just went to bankruptcy court; my house was foreclosed on and the irs sent me a 1099C form. Since I filed bankruptcy, and the mortgage was included in that bankruptcy, do I need to file the 1099C form when I file my taxes?