Owe IRS around $90,000?

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?

Technorati Tags: 3 years, assets, bankruptcy, collection information statement, debts, federal taxes, installment agreement, installment contract, installment plan, irs, levy, life thanks, offer in compromise, personal income, pulpits, tax returns, time penalty, unpaid medical bills

Posted February 11th, 2010 in Bankruptcy Q and A. Tagged: 3 years, assets, bankruptcy, collection information statement, debts, federal taxes, installment agreement, installment contract, installment plan, irs, levy, life thanks, offer in compromise, personal income, pulpits, tax returns, time penalty, unpaid medical bills.

5 comments:

Judy:
You can’t file an offer in compromise for returns not yet filed. You might as well go ahead and file them – it’s not going to get better if you wait, and will get worse with penalties for non-filing. After you file the returns, you can file an offer in compromise – be aware that most are not accepted, and won’t be if there’s a chance you’ll be able to eventually pay off more than what you’re offering..
February 11th, 2010 at 4:36 am
Greg K:
This is a tough one. In bankruptcy the judge has complete say over what happens to the debts and the assets. There are some formulas and precedents. But, if you are proactively working with the IRS you may be able to get the judge to relieve you of the penalties.

I would talk to a bankruptcy lawyer about this. You have a lot at stake.

Good Luck
February 11th, 2010 at 4:36 am
chatsplas:
I am sorry for your poor financial situation.
HOWEVER, had you followed the law and filed annually as required, you wouldn’t be in such dire financial straits with the IRS, and your amount owed wouldn’t be so high.
Did you have expert help with returns? You may have overlooked deductions and rebates and credits to which you were entitled.
Bankruptcy is not a panacaea, and does not generally wipe out taxes, although it can do the medical bills. This is why we need universal medical coverage, as medical bills are number one cause of bankruptcy. IRS has some leeway to eliminate some penalties, but you are stuck with the interest you incurred by your actions/inaction.
February 11th, 2010 at 4:36 am
Ms. Angel..:
Once you call back with the information listed on your financial (and don’t try to lie because IRS knows it all) They will let you know if you can afford a certain amount per month, or give you other options. IRS will work with you, just give them a chance, they gave you many chances by sending you notices and reminders to file, and you just refuse to file. See what situation you put yourself in.
Good luck! Just work with IRS they will help you.
February 11th, 2010 at 4:36 am
Brian L:
In such kind of complicated situation, I would suggest you pay a visit here

http://www.DebtFreetips.info/debt-free.htm

to get some free consultations,I had good experience with there when I met the serious debt problem before.
February 11th, 2010 at 4:36 am